THE WALL STREET JOURNAL: Tullow Oil To Buy Schooner, Ketch Fields Interests: “Tullow Oil, the independent international oil and gas exploration and production company, said Monday that it has entered into agreements with Shell U.K. Limited and Esso Exploration and Production U.K. Limited to purchase their entire producing interests in the Schooner and Ketch gas fields and surrounding acreage.” (ShellNews.net) 20 Dec 04

DOW JONES NEWSWIRES

December 20, 2004

Edited Press Release

LONDON -- Tullow Oil, the independent international oil and gas exploration and production company, said Monday that it has entered into agreements with Shell U.K. Limited and Esso Exploration and Production U.K. Limited to purchase their entire producing interests in the Schooner and Ketch gas fields and surrounding acreage.

The total consideration, financed through bank debt and internal resources, is GBP200 million, inclusive of capital allowances, with an effective date of 1st July 2004.

The gas initially in place (GIIP) for the Schooner and Ketch fields is in excess of 1,500 bcf of which only 350 bcf has so far been recovered. Current production is 60 mmscfd gas.

Tullow said it plans a work programme designed to substantially increase existing production levels with the potential to increase the ultimate recovery to 50% of GIIP.

Subject to necessary consents, Tullow will become the operator of both fields upon completion, it said.

The net consideration payable by Tullow on completion will reflect revenues and costs accruing to the interest from the effective date. The transaction will be financed through a combination of bank debt and internal resources. Completion is targeted for the first quarter of 2005.

The producing interests to be acquired are a 90.35% interest in the Schooner field and a 100% interest in the Ketch field. These fields have been in production since 1996 and 1999 respectively.

On completion, Tullow will commence a three year development programme, designed to increase production levels with the potential to increase the ultimate recovery to 50%. The work programme will consist of working over and sidetracking existing wells and drilling new wells to access previously undrained compartments in the fields.

In addition to the producing assets, Tullow said it will also acquire minority interests in the Topaz, Marjan, and 44/27-1 discoveries. The acreage acquired also offers attractive exploration upside, principally from the Schooner Extension prospect, which lies immediately southeast of the Schooner field.

Tullow plans a fast-track subsurface evaluation of this prospect and two adjacent blocks that Tullow, as operator, was recently awarded in the 22nd licensing round.

Upon completion, Tullow will operate over 60% of its U.K. gas production.