Tullow rides gas price blip

Tullow Oil expects to participate in six exploration wells in the UK North Sea this year. The larger prospects include Acer in block 16/13c, with gross oil upside of 300 MMbbl, and Harrison in block 44/19b, with gas upside of 120 bcf.

Offshore staff

LONDON, UK --Tullow Oil expects to participate in six exploration wells in the UK North Sea this year. The larger prospects include Acer in block 16/13c, with gross oil upside of 300 MMbbl, and Harrison in block 44/19b, with gas upside of 120 bcf.

The company focuses on gas production in the UK sector. At a briefing in London this week, chief executive Aiden Heavey said that forward gas prices on the UK mainland were recovering after a decline caused by a sudden influx of new supplies from Norway and The Netherlands.

Tullow's recent Schooner NW development well fell below expectations, causing it to downgrade reserves at Schooner/Ketch by 45 bcf. But this should be offset by gains from three new developments in the southern gas basin ¿ Kelvin, Thurne, and Wissey ¿ and a probable fourth, K4, in the Caister-Murdoch area.

3/22/2007

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