Tullow and Namibia, page-2

Thanks gavwes. That quote is from the Press Release part of the Tullow Interim Management Statement for the period 1 July to 12 November 2014 that was released a couple of hours ago in London.

Looking at the full Interim Management Statement PDF file, it contains the following:

12 November 2014

"In Namibia, Tullow has been discussing the future of its stake in the Kudu gas development project with the Government. Kudu is an excellent project for Namibia, and Tullow is committed to assisting the government in moving it forward to a Final Investment Decision, but the Group will not be investing capital in the development as other projects currently rank higher in the capital allocation process.

Also in Namibia, in October 2014, Tullow completed a farm-in to offshore exploration licence PEL 0030 which covers Block 2012A and is operated by Eco Atlantic. Tullow’s interest is 25% during the seismic phase but can increase to 40% with operatorship, if a prospect is selected for drilling. This farm-in is part of a strategic basin testing and acreage positioning initiative by Tullow whereby attractive and material oil plays are pursued in shallow waters."

So even though Tullow are getting out of the Kudu gas project, they are still keen on pursuing the Namibia offshore oil plays in the Walvis basin (where they are involved in PCL's blocks and the ECO block) .

Regarding the Tullow exploration spend reduction, that's for 2015.
Drilling the PCL/Tullow blocks was in the past estimated to be late 2015/ early 2016, so now obviously 2016 is the year.

Also, if you refer to the below slide from the June 2014 Tullow presentation (which is referring to the PCL blocks) you can see that Tullow pointed out that it contains low cost targets.......

Namibia reachable turbidites
* Older turbidites beneath shelf (low cost)