Tullow Oil increases stake in North Sea Horne gas discovery

The UK-based Tullow Oil PLC has agreed to purchase from BP PLC for £2.27 million, plus a contingent payment of £500,000, interests in three North Sea licenses involving various equity interests in Southern Gas basin blocks.

June 5, 2003

2 min read

By OGJ editors

HOUSTON, June 5 -- The UK-based Tullow Oil PLC has agreed to purchase from BP PLC for £2.27 million, plus a contingent payment of £500,000, interests in three North Sea licenses involving various equity interests in Southern Gas basin blocks.

Tullow Oil UK Ltd. Managing Director John Lander said, "The acquisition of these important and highly prospective interests, close to one of our producing hubs, fits with our strategy of creating value through targeted expansion within our core areas." The blocks are south of the Thames field production complex.

Tullow agreed to buy 22.22% interest in License P133 Blocks 53/3a and b; 58.83% interest in License P786 Blocks 53/3 c and d; and 12% interest in License P852 Block 53/4bF1. Tullow already has 73.83% interest in Block 53/3c.

Contingent upon government approval, Tullow plans to succeed BP as operator of Blocks 53/3c and d.

Two of the blocks, 53/3c and 53/4bF1, contain the Horne gas discovery, made in 1992 by well 53/3c-3. The well flowed on test at a rate of 55 MMcfd from Rotliegendes sand.

Tullow plans an early development of Horne, together with the nearby Wren gas discovery on Block 53/4b, in which Tullow already has 40% interest.

The acreage also contains numerous prospects and leads as mapped on 3-D seismic surveys, with potential for additional reserves from Rotliegendes sand. Tullow said it anticipates that at least one well will be drilled in 2004 to test the prospects.