Tullow Oil begins production from Horne & Wren

June 14, 2005
Tullow Oil plc has begun natural gas production from Horne & Wren, its first operated UK development. Production started on June 9 and stabilized at 60 MMcf/d. The operator will increase the flow to 90 MMcf/d.

Offshore staff

Tullow Oil plc has begun natural gas production from Horne & Wren, its first operated UK development. Production started on June 9 and stabilized at 60 MMcf/d. The operator will increase the flow to 90 MMcf/d.

The development is a 50/50 joint venture between Tullow and Centrica. It has two horizontal wells, an unmanned installation, and a pipeline to the Thames platform, where Tullow holds 67%. The gas is processed at Thames and compressed for export to the Tullow-operated Bacton Terminal.

Tullow acquired minority interests in BP's Horne & Wren discoveries in 2001. Later, the company entered into a series of transactions that made Tullow the operator with 50%. The company began fast-track development after the project was sanction in June 2004 and the field development plan was approved by the DTI in October 2004.

Production from the wells brings the throughput of the Thames infrastructure to over 190 MMcf/d, a four-fold increase since early 2004.

Operator Gaz de France Britain discovered gas bearing reservoir sands in the Carboniferous section of the Opal exploration well (43/25a-2W). Tullow has 46% in the discovery, which may revert to 30% if back-in rights are exercised.

The discovery area was suspended on June 9. Engineers are integrated the well information with existing data to find the accumulation's extent and complete pre-development studies. The co-venturers plan to re-use the suspended well. Tie back options include the Caister Murdoch System infrastructure, in which Tullow and Gaz de France Britain have a non-operated interest.

On June 8 Tullow sold two subsidiaries with minority interests in the Alba and Caledonia oil fields in the Central North Sea. Tullow sold the subsidiaries to Itochu Corp. for a $112 million.

6/14/05