Team Tullow Oil – 73% Success Rate on Exploration Wells
Recently I did some reading on the Tullow Oil PLC official Web site (and a couple of other web sites) and found that Tullow Oil has a very high success rate for exploration and appraisal drilling results. Great news for CGX Energy.

2011 – 73% - success rate

2010 – 83% - success rate

2009 – 87% - success rate

2008 – 77% - success rate

SOURCE: Tullow Website

I am not sure how this success rate compares with other companies, but I a sure it is near the top of the industry. These “success rate numbers” (details listed below) are a great indicator that Tullow has a great amount of skill, talent and good fortune in its oil exploration activities, and the fact that they are involved with CGX Energy in drilling one of the two upcoming wells in 2012 is great.

CGX Energy should be very confident to have a partner with the impressive track record of success that Tullow Oil can provide. Recent developments and announcements with Tullow Oil and Shell oil getting together is another vote of confidence in Tullow, by one of the World’s largest oil companies.

·The Group more than doubled in size in 2004, mainly as a result of the Energy Africa acquisition which was completed in May that year for $570m. Overall Tullow spent US$1 billion on acquisitions and investments in 2004, creating a strong portfolio of international exploration, production and development assets. The integration of Energy Africa progressed well and Tullow delivered a very good operational and financial performance in 2005. It had two UK North Sea gas discoveries, one discovery in Gabon and one in Mauritania

·In 2007, Tullow drilled two deepwater wells offshore Ghana discovering the massive Jubilee field – its largest ever discovery and the beginnings of proving up a second new major oil province. 2008–2009 was its next phase of growth with a major focus on Africa, based on delivering first oil in Ghana in 2010. And continuing to fast track the development of the significant resources discovered in Uganda.

·In 2010, the Jubilee field was brought on to production in November, in record time, some 40 months after its discovery. A new major discovery was made at the Enyenra (Owo) and Tweneboa fields in Ghana during the year. These will be extensively appraised in 2011. In Uganda, Tullow has now discovered 1 billion barrels of gross (P50) oil resources in the Lake Albert basin and will work with its new proposed partners, CNOOC and TOTAL, in developing a basin wide development plan in 2011.In Ghana, the Jubilee field was discovered in 2007 and began producing first oil in November 2010. Jubilee is a world class oil field with estimated recoverable resources of up to 1 billion barrels (160,000,000 m3) with further potential. In addition to Jubilee, the two licences hold significant further exploration potential, which are currently being explored.

·In 2011, Tullow will be embarking upon a high-impact exploration campaign including basin opening wells in Liberia. Also in 2011 the company has bought into twenty five Dutch, North Sea Gas fields, and made a significant oil discovery in French Guiana with the Zaedyus well (where the well encountered 72 m of net oil pay in two turbidite fans).

·2012 will see Tullow (as well as Repsol and of course CGX Energy) partner up to drill an exploratory well off the coast of Guyana in early 2012.

Exploration success

Tullow continues to maintain a very high exploration and appraisal success rate across its portfolio. 2010 was a particularly strong year with 24 out of 29 exploration and appraisal wells discovering hydrocarbons, giving a success rate of 83%. In 2009, Tullow drilled a total of 15 exploration and appraisal wells, achieving an industry leading 87% success rate. The information contained in these tables records all the exploration and appraisal drilling results since 2008.

2011 Success rate is 19 discoveries out of 26 wells = 73%

2010 Success rate was 24 discoveries out of 29 wells = 83%