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Tullow Announced Nzizi-3 Appraisal Well Results

Source: www.gulfoilandgas.com 5/19/2010, Location: Africa

Tullow Oil plc announces that the Nzizi-3 well in Uganda Block 2 has successfully appraised the Nzizi gas field. The Nzizi-3 appraisal well was drilled 1.2 kilometres up-dip and to the east of the Nzizi-2 well in the Kaiso-Tonya region of Uganda Block 2. The well was drilled to a total depth of 974 metres and results of logging and sampling confirmed a total of 9 metres of gas pay, and 16 metres of oil pay.

As expected, the gas pay includes a 4 metre zone in communication with the Nzizi-2 well. The oil pay includes a new discovery in the basal sands where 11 metres of net pay was encountered without an oil-water contact. The oil discovery will be the subject of further evaluation. Reservoir quality in each of these sandstone intervals is excellent.

The successful outcome of this well proves its viability as a future gas producer for the integrated power project scheduled for first production in late 2011. The Nzizi-3 well will now be suspended and the rig will move to the Waraga-1 discovery well to prepare it for future testing.

Tullow has interests in three licences in the Lake Albert Rift Basin in Uganda. Tullow operates Block 2 with a 100% interest and has a 50% interest in Blocks 1 and 3A which are operated by Heritage Oil (50%).

Commenting today, Angus McCoss, Exploration Director, said:
"The Nzizi-3 appraisal well takes us a significant step towards first gas production in Uganda by the end of 2011. We continue to work closely with the Government of Uganda on plans for accelerating our exploration and appraisal activities in the region and look forward to commencing a multi-well programme with a second rig in Block 1 next month. A third rig is actively being sought for drilling later in 2010.

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