Tullow Oil - 2006 Results Presentationfiles.investis.com/tullowoil/pdfs/fullyear2006b.pdf · Tullow...
Transcript of Tullow Oil - 2006 Results Presentationfiles.investis.com/tullowoil/pdfs/fullyear2006b.pdf · Tullow...
SlideTullow Oil plc – 2006 Final Results 1
2006 ResultsTullow Oil plc Building a Balanced Portfolio of International
Exploration and Production Assets
SlideTullow Oil plc – 2006 Final Results 2
Disclaimer
This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business.
Whilst Tullow believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Group’s control or within the Group’s control where, for example, the Group decides on a change of plan or strategy.
The Group undertakes no obligation to revise any such forward-looking statements to reflect any changes in the Group’s expectations or any change in circumstances, events or the Group’s plans and strategy. Accordingly no reliance may be placed on the figures contained in such forward looking statements.
SlideTullow Oil plc – 2006 Final Results 3
Presentation Contents
28Appendix 1 – Exploration Programme
46Appendix 4 – South Asia
31Appendix 2 – Europe
34Appendix 3 – Africa
50Appendix 5 – South America
26
15
7
4
Page
Introduction
Business Review
Conclusion and Q&A
Operations Review
Section
SlideTullow Oil plc – 2006 Final Results 4
INTERIM RESULTS - 06
Introduction – Aidan Heavey
SlideTullow Oil plc – 2006 Final Results 5
Focused growth from a strong portfolio
• Exploration success and operational delivery
• £1 billion invested in 2006 for long-term growth
• Strong team in place for sustained business growth
• Portfolio of high-impact regional opportunities
• Continuous active portfolio management
SlideTullow Oil plc – 2006 Final Results 6
PRODUCTION and DEVELOPMENT
EXPLORATION
ACQUISITIONS and PORTFOLIO MANAGEMENT
Tullow’s long term growth strategy
● A track record of production growth and asset enhancement
● 98% reserve replacement over the last three years
● 60 to 70% of Capex reinvested in Production and Development
● Near-infrastructure and high impact exploration both delivering
● Long term growth – key campaigns based on core plays and skills
● Continual rejuvenation of portfolio through new ventures
● A strong track record of deal identification, execution and integration
● Focus on value rather than production targets
● Consistently high-grading the portfolio
SlideTullow Oil plc – 2006 Final Results 7
INTERIM RESULTS - 06
Business Review – Tom Hickey
SlideTullow Oil plc – 2006 Final Results 8
Strong and profitable growth track record
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Net Income Cash Flow
£m
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Tullow has a strong track record of generating value through acquisitions and organic growth
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SlideTullow Oil plc – 2006 Final Results 9
2006 Results summary
Down 13%
Up 44%
Up 38%
Up 38%
Up 39%
Up 32%
Up 30%
Change
£140.2m
£309.5 m
4.00 p
17.50 p
£113.1 m
£224.4 m
£445.2 m
2005
£122.1 mNet debt3
£446.7 mCash generated from operations2
5.50 pDividend per share1
24.23 p
£157.4 m
£295.1 m
£578.8 m
2006
Sales Revenue
Operating profit before exploration activities
Basic earnings per share
Net profit
Record revenue, operating profit, cash flow and net profit
1Including Interim and Final Dividend2 Before working capital movements3 Including all cash balances
SlideTullow Oil plc – 2006 Final Results 10
2006 Results – operational performance
Revenue up 30% to £579m
• W.I. production up 11% to 64,720 boepd
• Balanced revenue mix – Oil 46%, Gas 54%
• Realised gas price of 46.2p/therm
• Realised oil price of $52.2/bbl
Gross Profit up 57% to £318m
• Cash Operating Costs of £4.71/bbl
• DD&A charge of £6.13/bbbl (2005:£5.67/bbl)
• Exploration write-off £32.5 million
Operating cash flow1 up 44% to £447m
• £332m capital reinvestment
• £32m dividend payment
• £12.5m total cash borrowing costs
1before working capital adjustments
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Revenue£579m
Revenue£445m
£m
Operating ProfitGross Profit* DD&A Overlift
* Gross Profit before admin costs, exploration and disposals
SlideTullow Oil plc – 2006 Final Results 11
Hardman Resources acquisition
• Deal announced 25 September 2006, completed 10 January 2007
• Hardman business consolidated in Tullow financials at 31 December 2006
• 65 million new Tullow shares issued to electing Hardman holders
• IFRS 3 – Preliminary Fair Value Allocation exercise undertaken
1Including Deferred tax Uplift of £155.3m
The Hardman portfolio is already delivering positive newsflow:
• Major upside potential in Uganda confirmed by recent Kingfisher well in Block 3A• Encouraging results from Chinguetti C-18 and C-14 wells• Additional licenses in Portugal and Suriname added• Integration effectively complete, asset familiarisation process ongoing
750.0
39.5
623.6
86.9
£m
Chinguetti
Intangible Assets
Total1Net Assets, including cash
Fair Value
SlideTullow Oil plc – 2006 Final Results 12
Managing the business in a changing environment
Industry Environment
• Oil prices strong and stable
• UK gas prices off recent lows
Tullow Re-investment
• Portfolio analysis supports capital allocation
• £350m 2007 programme well covered by operating cash flow
• Hedged volumes underpin £280m of 2007 Revenue
• Bolt-on deals
Financing
• Net debt - £450 million post Hardman
• Some repayment and term extension likely
• Potential for portfolio rebalancing to enhance financial flexibility
SlideTullow Oil plc – 2006 Final Results 13
0 100 200 300
2006
20072006 Programmes
• 2006 Capex of £332m largely driven by development programmes in UK, Gabon and Equatorial Guinea
2007 Programmes
• Cost Inflation and low gas prices in UK
have led to some capital reallocation
• 2007 capital split 60:40 between
Development and Exploration
• Balance shifted due to larger appraisal
programmes and postponement of
certain UK development programmes
Well funded capital programmes
DevelopmentExploration
£332m
£350m
South Asia
NW Europe
Africa
2007 Forecast Capex by Core Area
£350 million
7.3% (25.5)
38.4% (133.3)
52.6% (182.4)
South America
1.7% (5.8)
SlideTullow Oil plc – 2006 Final Results 14
Business summary
•Excellent track record of acquisitions, organic growth and cost control
•2006 – Record results from production growth and strong pricing
•Allocating capital to regions with high value creation potential
•Portfolio rebalancing in 2007 to refresh the portfolio
•Continuing to grow both the dividend and the business
SlideTullow Oil plc – 2006 Final Results 15
INTERIM RESULTS - 06
Operations Review – Paul McDade and Angus McCoss
SlideTullow Oil plc – 2006 Final Results 16
2006 Key operational highlights
Exploration
• 58% success rate in 2006
• Major oil province established in Uganda
• Doubled high impact exploration acreage
Production and Development
• Average production of 64,720 boepd
• Total reserves and resources of 506 mmboe
• Okume, West Espoir and Bangora on stream
Acquisitions
• Hardman acquisition completed – Jan 2007
• Gabon – back-in rights added
SlideTullow Oil plc – 2006 Final Results 17
Consistently generating reserve and production growth
2006 Production• Average = 64,720 boepd (23 mmboe)
• Year-end = 75,000 boepd
Commercial Reserves – 219 mmboe• Uganda adds 35 mmboe
• Further additions of 15 mmboe
• Organic Reserve Replacement = 89%
Contingent Resources – 287 mmboe• Mauritania adds 93 mmboe
• Further additions of 29 mmboe
Outlook• 2007 production forecast = 80,000 boepd
• Okume and Ketch production growth
• Material Kingfisher discovery with significant further upside potential
Three year organic reserve replacement of 98% Total Reserves and Resources = 506 mmboe
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SlideTullow Oil plc – 2006 Final Results 18
0
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UK business environment
UK gas pricing
• Winter 06/07 pricing fell due to new imports, warm winter and full storage
• Low prices not sustainable
• Forward curve 2008+ remains strong
• UK-European price convergence remains
• Opportunistic hedging to lock in value
• c. 50% of 2007 output hedged at greater than 40p/therm
Market environment
• Tight and inflationary contractor environment in 2006
• Some marginal programmes deferred
• Market expected to soften to more sustainable levels
Gas Price Realisation Forward Curve
p/th
erm
Long term gas prices remain strong
SlideTullow Oil plc – 2006 Final Results 19
UK Business – Record production with further projects sanctioned
Exploration Success
• Humphrey, Cygnus & K4 gas discoveries
• Up to 6 exploration wells planned in 2007
• 24th Round – 6 blocks awarded
Portfolio Continues to Deliver
• Production increased by 32% to 177mmscfd
• Horne & Wren exceeding expectations
• Strong performance from Ketch-7
• Schooner downgrade offset by strong organic growth elsewhere in the portfolio
Development Investment Ongoing
• Ketch-8 and 9 on stream 2007
• Schooner infill drilling deferred in current environment
• Kelvin & Thurne first gas 2H 2007
• Wissey project sanctioned for 2008 delivery
SlideTullow Oil plc – 2006 Final Results 20
Strong delivery from the Africa business
Equatorial Guinea• Okume first oil on schedule in Dec 06 • Initial development well results positive• Ceiba uptime significantly improved• Production above 70,000 bopd
Gabon• Production sustained at 15,000 bopd• Acquisition provides further developments• Further infill success at Niungo
Congo (Brazzaville)• M’Boundi production above 50,000 bopd• Initial water injection results positive• Water injection of 120,000 bwpd targetted
Côte d’Ivoire• West Espoir onstream on schedule• Drilling program may be extended• Workover program ongoing on East Espoir
Mauritania• Chinguetti production around 23,000 bopd• C18 well tested at 8000 bopd• 3D/4D seismic initiated
SlideTullow Oil plc – 2006 Final Results 21
Production and development outlook
Production and Development
• Average production target of 80,000 boepd
• UK
○ Two Ketch wells scheduled for May start-up
○ Thurne and Kelvin to come on stream in Q3
• Africa
○ Okume, Espoir, M’Boundi developments ongoing
○ Kudu gas development
○ Chinguetti redevelopment
○ Uganda Early production system
• Asia
○ Chachar – due on stream in Q2 2007
○ Bangora – full field development plan
SlideTullow Oil plc – 2006 Final Results 22
Uganda – Preparing for commerciality
World-class basin potential
• Five discoveries from five wells○ First oil ever produced in Uganda
○ Highly productive reservoirs
○ Good quality crude
• Second Kingfisher test has significantly de-risked the large lake structures
Kaiso-Tonya discoveries
• 3D seismic – mid- 2007
• 4 wells commencing in April 2007
• Planned early production sanction - Q3 2007
• First oil targeted for 2009
Kingfisher discovery
• 3D seismic – mid-2007
• 1 well – Q4 2007
Exploration
• 2D/3D seismic
• Ngassa, Kingfisher Deep and ButiabaUp to $100 million to be invested in 2007
Block 12D Seismic
Block 3A3D Seismic1 Well
Block 2 – Kaiso-Tonya3D seismic4 onshore wells1 Ngassa well
Block 2 - Butiaba2D Seismic/1 well
SlideTullow Oil plc – 2006 Final Results 23
Kudu: developing upside opportunities
Appraisal programme to understand upside
• 2006 – focused on appraisal locations
• Two well programme to start in April
• Development options to be reviewed following the wells results
• Results could dramatically expand options
○ 300/800 MW Gas to Power
○ Direct Gas Export
Strategic partner identified
• Plan to farm down to 70%
• In exclusive negotiations
• Pre-spud completion anticipated
SlideTullow Oil plc – 2006 Final Results 24
India: four well campaign in proven rift basin
Exciting region with high impact potential
• CB-ON/1 on trend between two proven ‘Billion Barrel’ basins
• Geologically analogous to Lake Albert Basin, Uganda
• Proven plays to north and south
• 2006 seismic has identified a number of prospects
Prospect selection complete
• Four well programme in H2 2007
• Existing infrastructure makes wide range of prospects commercially viable
• Strong local market for energy
Map
SlideTullow Oil plc – 2006 Final Results 25
Over 40 exploration wells planned for next 12 months
UK6 wells
Cameroon2 wells
Namibia2 wells
Ghana2 wells
Côte d Ivoire1 well
French Guiana2 wells
India4 wells
Suriname15 wells
Pakistan2 wells
Uganda7+ wells
Gabon1 well
Mauritania1 well
SlideTullow Oil plc – 2006 Final Results 26
INTERIM RESULTS - 06
Conclusion – Aidan Heavey
SlideTullow Oil plc – 2006 Final Results 27
Focused growth from a strong portfolio
•Clear, simple, repeatable growth strategy
•Balanced portfolio
•High quality staff
•Strong Cash Flow and Sensible Gearing
•Focus on what we know
•Long term plans and a long term view
Tullow is a flexible Exploration and Production business that can offer maximum value creation in changing market conditions
SlideTullow Oil plc – 2006 Final Results 28
INTERIM RESULTS - 06
Appendix 1 – Exploration programme
SlideTullow Oil plc – 2006 Final Results 29
Over 40 exploration wells planned for next 12 months
UK6 wells
Cameroon2 wells
Namibia2 wells
Ghana2 wells
Côte d Ivoire1 well
French Guiana2 wells
India4 wells
Suriname15 wells
Pakistan2 wells
Uganda7 wells
Gabon1 well
Mauritania1 well
SlideTullow Oil plc – 2006 Final Results 30
Exploration programme
Q4 200730 mmbo40%2 wellsNgossoCameroon
Q3 200720 mmbo21%Level ZeroCI-26Côte d’Ivoire
H1 2008300 mmbo19%KibaroPSC AMauritania
H1 2008250 mmbo48%Lead 26Block 2Mauritania
Q2 2007100 mmbo40%M’PanoNziembouGabon
SOUTH AMERICA
ASIA
AFRICA
EUROPE
Q3 2007200+ mmbo50%4 well campaignCB-ON/1India
Q2 20071 TCF40%2 well campaignKohatPakistan
H1 20081,000 mmbo77.5%Matamata (2 wells)Guyane MaritimeFrench Guiana
April 20074 TCF90%2 Kudu East WellsKuduNamibia
Q3 2007500 mmbo50%Kingfisher - 2Block 3AUganda
Q3 200750 BCF51.7%Doris48/30aUK
Q2 200750 mmbo100%Nzizi-2Block 2Uganda
Q2+ 2007100+ mmbo40%15 well campaignUitkijkSuriname
Q4 2007900 mmbo100%NgassaBlock 2Uganda
Q2 200760 BCF31.5%North TanoTano ShallowGhana
Q2 2007600 mmbo22.9%MahoghanyWest Cape Three PointsGhana
Q4 2007200 mmbo100%Butiaba (3 wells)Block 2Uganda
Q2/Q3 2007200 mmbo100%Mputa (3 wells)Block 2Uganda
Q4 2007200 BCF25%TBASNS Farm-inUK
Q3 200735 BCF100%TBASNS Farm-inUK
Q2 2007120 BCF22.5%Harrison44/19bUK
March 2007300 mmbo6.25%Acer16/13cUK
March 200790 mmbo30%PeverilQuad 39UK
Date/StatusGross UpsideInterestProspectLicenceCountry
Map
SlideTullow Oil plc – 2006 Final Results 31
INTERIM RESULTS - 06
Appendix 2 – Europe
SlideTullow Oil plc – 2006 Final Results 32
UK business background
Independents continue to build
• Mature basin - Majors continue to manage portfolios but not yet exit
• Various asset sales packages (including cash in of some venture capital)
• DTI continues to be active; 24th Licensing Rounds, stewardship
• Access to rigs and services appears to be softening
Gas supply
• Period of unstable pricing as import capacity is established
• New import projects factored into forward curve
• UK fiscal terms in gas basin continue to be challenged
Map
SlideTullow Oil plc – 2006 Final Results 33
Southern North Sea: growth in a challenging environment
Overview
• Strong License & Infrastructure Position○ 59 blocks○ Bacton gas terminal & 660km of pipelines○ 35 offshore platforms & subsea hubs
• Operating Capability○ 40% of infrastructure operated○ 79% of production operated
Costs & pricing continue to be managed
• Opex○ being controlled - 9p/therm
• Pricing○ Record pricing achieved in 2006 – 46p/therm○ Hedging protects against 2007 instability and softening ○ Forward curve firming
Key operational highlights
• Exploration○ Excellent track record of success - 100% in 2006○ 6 explorations wells planned for 2007
• P&D○ Record production achieved in 2006 – 177mmscfd○ Mature fields continue to outperform○ Current phase of S&K redevelopment nearing
completion○ Thurne, Kelvin & Wissey developments underway
Hewett/Thames Area
CMS Area
Tullow non-operatedTullow operated
Map
SlideTullow Oil plc – 2006 Final Results 34
INTERIM RESULTS - 06
Appendix 3 - Africa
SlideTullow Oil plc – 2006 Final Results 35
Africa: developing a truly pan-African business
A continent with many opportunities
• Mature basins where majors are exiting
• Significant areas currently unlicensed
• A number of largely-unexplored frontier basins
Strong knowledge base
• Over 20 years of experience in Africa
• Detailed understanding of African petroleum basins
• Good access to a range of opportunities
Extensive portfolio
• Interests in 14 countries, 54 licences and 15 producing fields
• Current production of over 38,000 boepd
• Interests in frontier exploration through to large development projects
• Continually evaluating new venture opportunities
SlideTullow Oil plc – 2006 Final Results 36
North Africa: unique acreage position across the whole region
Overview• Tullow now “number 2” in Mauritania
following acquisition of Hardman• 9 contiguous blocks in Mauritania/Senegal
○ Producing Chinguetti oil field○ Tiof and Tevet potential developments○ Banda and Pelican gas discoveries○ Significant exploration potential
• Considerable long term exploration potential in this underexplored region
Key operational highlights• Early success in Chinguetti recovery
programme○ C-18 tested at 8,000bopd○ C-14 successful water shut-off
• 3D/4D seismic underway across Chinguettiand Tiof
• Planning for Phase 2b wells underway• Development options for Tiof under review
Map
SlideTullow Oil plc – 2006 Final Results 37
W. Africa Transform Margin: production & high impact exploration
Overview• Espoir redevelopment commenced in 1999• Tullow now has a full-cycle business there
○ 2 producing fields○ 8 exploration licenses
• West transform margin has potential to add significantly to Tullow’s reserve base in 2007 and beyond
• Several 200mmbo+ structures currently being analysed
• Drilling planned for 2008/9
• Key operational highlights• Côte D’Ivoire – full cycle business
○ Espoir production up 51% to 29,500 bopd in 2006○ Development drilling ongoing○ 4 exploration licences signed in 2006○ 500 sq km 3D seismic data acquired on CI-107/108
• Ghana – building on our knowledge○ Mahogany prospect (250mmbo) to spud May 07○ 3D seismic - good probability of hydrocarbons○ North Tano gas appraisal well to spud June 07
Map
SlideTullow Oil plc – 2006 Final Results 38
Expanding the Tullow footprint in Gabon
Overview
• Mature area suited to Tullows strengths
• Interests in ~40% of all licensed acreage
○ 12 producing fields
○ 5 exploration licenses
○ Back-in rights to 12 licenses
Key Operational Highlights
• Production sustained around 15,000bopd
• Additional back-in rights will add over 1,000 bopd by early 2008
• Continued success in Niungo infill programme
• Avouma onstream and Ebouridevelopment underway
Map
SlideTullow Oil plc – 2006 Final Results 39
West Africa: material production growth in 2007
Equatorial Guinea
• Okume○ First oil on schedule in Dec 06
○ Initial wells within prognosis
○ Production ahead of target ~30,000bopd
• Ceiba○ Uptime significantly improved
○ Infill drilling programme ongoing sustaining production above 40,000 bopd
Congo (Brazzaville)
• M’Boundi○ Production sustained around 56,000 bopd
○ Initial water injection results positive
○ Facilities capacity of 90,000blpd liquid and 120,000 bwpd injection planned
Angola
• Block 1 ○ Tullow awarded license in Aug 2006
○ Appraisal drilling and 3D seismic planned for 2008
Map
SlideTullow Oil plc – 2006 Final Results 40
Basin-wide strategy
• Leverage knowledge and influence
• Quickly discover basin potential
• Scaled development options
Hardman deal
• Increases influence and materiality
• 100% and operatorship of Block 2
Recent news
• Nzizi discovery – potential Mputaextension
• Kingfisher discovery
• Heightened HC potential of Lake Albert
Uganda: leading position in the Albertine Basin
Map
SlideTullow Oil plc – 2006 Final Results 41
Exciting new hydrocarbon province
Five discoveries from five exploration wells in 2006• Mputa-1 – January
• Waraga-1 – March
• Mputa-2 – May
• Nzizi – November
• Kingfisher – December
Three wells tested• Highly productive reservoirs, multi-darcy permeability
• Good quality but waxy crude - >30 degrees API
• Kingfisher 44m zone to be tested in March
Current Programme• Accelerate drilling of lake prospects
• 3D and 2D seismic programmes
• Appraisal drilling of discoveries
• Review of options for Early Development
Map
SlideTullow Oil plc – 2006 Final Results 42
Uganda – early development options
Challenges• Good quality but waxy & viscous crude
• Minimise environmental impact
• Ensure selected concept is viable
• Understand equipment lead time to ensure firm schedule
• Confirm proven reserves support early development scheme
Programme to EPS Sanction• Confirm concept definition – Q1 2007
• Detailed engineering studies – Q2 2007
• Sanction viable EPS – Q3 2007
Target• Meet MOU target of first oil 2009
Map
SlideTullow Oil plc – 2006 Final Results 43
Uganda: early results are very encouraging
Exploration results in the Albert Graben are so far excellent
• Oil discoveries at Mputa-1 & 2, Waraga-1, Nzizi-1 & Kingfisher-1
• Encouraging results significantly enhance Lake Albert basin potential
Very aggressive 2007 exploration programme
• 2D seismic at Butiaba, Paara and on the DRC side of Lake Albert
• 3D onshore and transition seismic at Kaiso-Tonya and Bugoma
• Onshore wells planned (Nzizi-2, Ngassa-1, Kingfisher-2, Kaiso Tonya & Butiaba)
• Gear up to drilling offshore wells in Uganda
• Mputa-Waraga early development scheme under consideration
Map
SlideTullow Oil plc – 2006 Final Results 44
Kudu: developing upside opportunities
Overview
• Offshore gas field with 3 tcf of proven gas and potential of up to 9 tcf
• 90% working interest
• Namibia in need of 300MW of power
• Currently working with Namibians and South Africans on 800MW gas to power project
Appraisal programme to start imminently
• Two well programme to appraise the upside potential to start in April
• Development options to be reviewed following the wells results○ 300/800 MW Gas to Power
○ Direct Gas Export
Strategic partner identified
• Plan to farm down 20%
• In exclusive negotiations with a single party
• Pre-Spud completion anticipated
Map
SlideTullow Oil plc – 2006 Final Results 45
Tanzania and Madagascar: feeding the next campaigns
Madagascar• Leads interpreted using existing 2D seismic
and new gravity / magnetic data
• Prospective plays tied to Manandaza–1 light oil discovery
• Preparing for environmental impact assessment
• Drilling planned for 2008/9
Tanzania• Preparing for 2D seismic acquisition in the
Ruvuma Basin
• Hydrocarbon systems: Msimbati / Mkindani oil seeps & Mnazi Bay gas discovery
• High risk and potentially high reward leads
• Drilling planned for 2008/9
Map
SlideTullow Oil plc – 2006 Final Results 46
INTERIM RESULTS - 06
Appendix 4 – South Asia
SlideTullow Oil plc – 2006 Final Results 47
South Asia: reinvesting for growth
A growth region for Tullow
• Region of growing energy demand
• Major high-impact exploration potential
• Relatively low-cost exploration/operations
• Limited competition for assets
Developments to fund exploration
• 7 exciting high impact exploration licences
• Delivery of development projects in Pakistan and Bangladesh
Future growth
• Focused on organic growth
• Extensive technical and geological knowledge of South Asia
• High Impact campaigns in India and Pakistan in 2007
Map
SlideTullow Oil plc – 2006 Final Results 48
Bangladesh: production upside and high impact exploration
Overview• Current energy demand is significant • Established gas pricing provides stability• Prompt payments on initial sales
Key Operational Highlights• Block 9
○ First gas - May 2006
○ Field development plan – April 2007
○ Production to be upgraded from 60 to 75 mmscfd
○ Phase 2 of appraisal programme
• Block 17/18○ 2D seismic acquisition completed
○ Successful farmout and license extension secured
○ Extensive 3D seismic planned for late 2007/8
Map
SlideTullow Oil plc – 2006 Final Results 49
Pakistan: considerable high impact upside potential
Overview
• Portfolio rationalised
• Production○ Delivery of Chachar development ongoing
○ Sara-Suri compression upgrades sanctioned
• High Impact Exploration○ Kohat seismic complete
○ Drilling planned 4Q 2007
Key Operational Highlights
• Production○ Chachar first gas - 2Q 2007
○ Sara-Suri compression - 2Q 2007
• High Impact Exploration○ Extensive seismic completed in Kohat
○ Up to 2 wells planned starting 4Q 2007
• Further operational access anticipated in 2007/08
Map
SlideTullow Oil plc – 2006 Final Results 50
INTERIM RESULTS - 06
Appendix 5 – South America
SlideTullow Oil plc – 2006 Final Results 51
South America: high impact Atlantic twins
Suriname
• Drilling shallow wells for upside extensions of Tambaredjo heavy oil field
• Low cost tie-backs to existing infrastructure
French Guiana
• 2007 acquiring Controlled Source Electro-Magnetic survey
• Preparing to drill substantial Matamataprospect in 2008
• Maturing drill worthy prospects in the Eastern Kawana area
Falkland Islands
• Acquired 2D seismic and Controlled Source Electro-Magnetic surveys
• High risk and potentially high reward prospects mapped
Map
SlideTullow Oil plc – 2006 Final Results 52
Tullow Oil plc3rd Floor, Building 11
Chiswick Park, 566 Chiswick High RoadLondon, W4 5YS
Tel: +44 20 8996 1000Fax+44 20 8994 5332
Investor Relations ContactChris Perry: [email protected]