Tullow plans to continue its active exploration programme in Africa by drilling a total of 10 exploration wells during 2007, four of which will be in Uganda. Following the successful 2006 drilling campaign, the Lake Albert Rift Basin in Uganda has the potential to become a new world class oil province. The Nzizi-2 appraisal well recently spudded and will be followed by two further appraisal wells on the Mputa discovery in order to refine current reserve estimates. These wells, combined with 3D seismic, will be used to support the sanction of an early production system leading to first oil in 2009. Preparations are also in progress to drill the potentially significant Ngassa and Kingfisher-2 prospects and the Nabors 221 rig has been contracted with a view to commencing this programme during the third quarter.
Recent progress in Tullow’s South American assets, deriving from interests obtained through the Hardman acquisition, has also been good. Tullow has been announced as the successful bidder for two highly prospective Trinidad licenses, 2a/b and Guayaguayare, under the country’s sixth exploration licensing round. In Suriname, Production Sharing Contracts were executed in February for two onshore concessions, Uitkijk and Coronie, which lie adjacent to the country’s main producing Tambaredjo field. Exploration drilling in Uitkijk is scheduled to commence in July this year.
SG has been actively trading ADY APG ROC & MHL with the residue cash left over from the TLW acquisition.
HDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
