Tullow Oil Plc - Uganda: Block 2 Mputa-1 exploration well 17...

Tullow Oil Plc - Uganda: Block 2 Mputa-1 exploration well

17 January 2006 - Tullow Oil plc (Tullow) announces that the Mputa-1 exploration
well in Uganda has encountered oil shows over two intervals within the deeper
objective and wireline logs have indicated that these intervals are hydrocarbon
bearing. A wireline pressure and sampling programme has commenced and, as of 16
January, oil samples have been recovered from the first such interval, a sand of
approximately 10 metres gross thickness at a depth of 965 metres. The sampling
programme is continuing and will include the lower interval where evidence of
hydrocarbons has also been encountered.

In accordance with the planned drilling programme for Block 2, the well will be
plugged and abandoned upon completion of the wireline sampling programme; any
production testing of Mputa-1 will be considered in conjunction with future
drilling. The rig will then move to the Waraga-1 location approximately 20 km to
the north east of Mputa-1.

Mputa-1 targeted multiple objectives on a structural prospect defined by the
2005 seismic survey in an area with surface oil seeps. The results of the
Mputa-1 discovery provide encouragement for further evaluation of the
surrounding area where a number of other prospects and leads have been
identified. Further work will be required before any comment can be made on the
size or commercial significance of the potential resource.

Commenting today, Aidan Heavey, Chief Executive of Tullow said:

"The initial results of the Mputa-1 well are very significant in that they prove
the existence of a working petroleum system in the Albertine Basin where Tullow
has a 50% equity interest throughout. While it is too early to determine the
size or potential commerciality of Mputa-1, the results significantly reduce the
risk of the prospects mapped in Blocks 2 and 3A. We now look forward to the
drilling of the Waraga-1 well in Block 2 and the Kingfisher prospect in Block
3A".