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Tullow Announces Successful Ngege-1 exploration well in Block 2 Uganda

Source: www.gulfoilandgas.com 6/24/2008, Location: Africa

Tullow Oil plc announced further success in Uganda’s Lake Albert Rift Basin with the Ngege-1 exploration well encountering both oil and gas. The well is the second in a continuous exploration campaign in the Butiaba region of Blocks 1 and 2.

Ngege-1 encountered over five metres of net oil pay and nine metres of net gas pay in separate sands and was drilled to a total depth of 640 metres. The well was drilled some three kilometres from the crest of the structure and seismic interpretation indicates further significant potential updip.

Downhole pressure testing and sampling have confirmed the presence of dry gas and moveable 30-32 API oil. Reservoir quality for both zones is excellent. Logging has been successfully completed and the well has been suspended as a potential future producer.

Ngege-1 is located 41 kilometres north-east of the Taitai-1 discovery well and tested the Victoria Nile Delta play in a new fairway along the axis of the Lake Albert Rift Basin. Results have confirmed the presence of well developed reservoir and seals, and thereby upgrade several other prospects which are included in the current drilling campaign.

The Karuka-1 prospect, which lies 24 kilometres south of Ngege-1, is the next drilling location and operations are expected to commence at the end of June. Karuka-1 is an escarpment fan prospect analogous to the Taitai-1 discovery.

There are no plans to test Ngege-1 at this time, the best candidates for testing and appraisal drilling will be assessed on overall merit at the end of the regional drilling campaign.

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