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News : Irish Last Updated: Apr 24, 2009 - 5:31:05 PM


Tullow Oil announces good news from Ghana
By Finfacts Team
Jan 12, 2009 - 9:12:45 AM

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Tullow Oil plc announced good news today on the Hyedua-2 well, which has been drilled to appraise the Jubilee field offshore Ghana. It flowed at a stable rate of 16,750 bopd (barrels of oil per day) and this result confirms good reservoir connectivity and very high productivity and also indicates that future production well deliverability will be in excess of 20,000 bopd.

Tullow said that the Hyedua-2 appraisal well, which lies in the Deepwater Tano licence, has been drilled to a total depth of 3,663 metres by the Blackford Dolphin rig in a water depth of 1,246 metres. The well intersected 55 metres of high quality oil bearing reservoir sandstones of which a 41 metre section has been production tested.

The exploration company said that the combination of outstanding reservoir productivity and continuity is very encouraging for Phase 1 of the Jubilee development which remains on schedule for first oil in the second half of 2010. The Hyedua-2 well will now be suspended, as planned, for later completion as a production well.

Tullow (49.95%) operates the Deepwater Tano licence. Other partners include Kosmos Energy (18%), Anadarko Petroleum (18%), Sabre Oil & Gas (4.05%) and the Ghana National Petroleum Corporation (GNPC) (10% carried interest). Tullow is also the Unit Operator of the Jubilee field.

Commenting today, Aidan Heavey, Chief Executive, said:

“Results from the Hyedua-2 and Mahogany-3 wells have confirmed our view of the substantial upside potential of the Jubilee field. The subsequent Hyedua-2 test, flowing at nearly 17,000 bopd of high quality crude, from a well not even in the centre of the field, is an outstanding success and indicative of a world class reservoir. These exceptional results further validate the partnership’s decision to proceed with a fast track development and have significantly increased our confidence in the delivery of Phase 1 production rates and reserves.”

Goodbody analyst Gerry Hennigan commented today: "Tullow provided the results of a flow test on the previously drilled Hyedua-2 well on the Jubilee field, offshore Ghana, this morning, which provided further evidence of the potential of Jubilee to exceed expectations. Oil flowed at a stable rate of 16,750 bopd, while a rate of 21.0 mmscfd (Million Standard Cubic Feet per Day of gas) of associated gas was also achieved. By way of comparison, two flow tests were performed on Mahagony-2 where the rate of oil flow was 5,200 bopd and 4,448 bopd with an average gas flow of 5.2 mmscfd. This latest result thus achieved rates between 3x and 4x the level reached in the previous flow tests and adds weight to the fact that Jubilee will not only be extensive in size, but also highly productive. Oil quality at 37 degree API was again good and in line with that achieved in previous results.

Tullow anticipates that future production from Hyedua will be in excess of 20,000 bopd with even higher rates achievable in the core of the field, given that Hyedua-2 is located on the north-west flank of the field and pressure data suggests good connectivity between the wells drilled to date. The result from Hyedua would suggest that Tullow and its partners should be in a position to extract more than the 300 – 350 million barrels originally proposed to be extracted from Phase I of Jubilee, which is to be developed via a total of seventeen wells. Tullow is the operator of the Deepwater Tano licence in which Hyedua-2 was drilled with a 49.95% stake, the other stakeholders being Kosmos (18%), Anadarko (18%), Sabre (4%) and GNPC (10% carried interest)."

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