Price 482p Target: 575.0p Issued: 11/07/07 Previous: 500.0p...

Price 482p Target: 575.0p Issued: 11/07/07 Previous: 500.0p Issued: 18/06/07
Key Petroleum, which has a free carried interest in the onshore Uitkijk ad Coronie
permits in Suriname, has reported that the first two wells drilled by Tullow on the
Uitkijk block have encountered oil.
Our risk-weighted valuation of Tullow’s interest in Uitkijk is some 1.9p per share.
Unrisked, we think Uitkijk is worth some 15p per share to Tullow, which would
provide upside of some 2.7% to our group NAV of 508p per share.
Despite early success with the first two wells on Uitkijk, further drilling and postwell
study will be required to establish commercial viability.
Tullow is earning a 40% interest on both the Uitkijk and Coronie onshore
concessions, and is currently drilling multiple shallow, low-cost wells on the Uitkijk
block. These wells are targeting heavy oil accumulations in thin reservoir sands. The
Uitkijk block is prospective for oil principally because of its location next to the
Tambaredjo and Calcutta heavy oil fields. These fields are Suriname’s main
domestic producers, flowing 13,000 bopd from a collective 1bn barrels of oil in
place gOOD LUCK TO ALL.