Tullow Oil Signs Production Sharing Contract in Uganda.

LONDON -- Tullow Oil plc ("Tullow"), the independent oil and gas exploration, development and production company, is pleased to announce that its subsidiary, Energy Africa, has signed a Production Sharing Contract with the Government of the Republic of Uganda in respect of Block 1. Energy Africa will hold a 50% interest and Heritage Oil Corporation 50%. Heritage will act as operator on behalf of the contractor group.

Block 1 is located immediately north of Blocks 2 and 3 where Energy Africa also holds 50% interests with Hardman Resources and Heritage Oil Corporation respectively. Exploration work undertaken in these areas, including drilling and seismic surveys, has demonstrated the presence of hydrocarbon reservoir and potentially large structures in the Albertine Graben of which Block 1 covers the northern extent.

Aidan Heavey, Chief Executive of Tullow Oil said "The addition of Block 1 to our acreage in the Albertine Graben in Uganda consolidates our position in this highly prospective frontier basin where an accelerated exploration and appraisal program is planned in the coming months."

Notes for Editors

"Tullow" where referred to in this release means Tullow Oil plc and/or its subsidiaries, as appropriate.

Tullow is one of the leading independent international oil and gas exploration and production companies in Europe. Tullow is quoted on the London and Irish stock exchanges (symbol TLW) and is a member of the FTSE 250 Index.

Strategy

Tullow's strategy is to build strong and secure cash flow from low risk production acreage, while applying discretionary funds to exploration territories with high potential. These activities are undertaken in a manner that reflects the Company's genuine concern for the environment and the health and safety of all personnel.

Production and Development Assets

Tullow has interests in over ninety exploration and production licences spread over three core areas: UK North Sea, West Africa and South Asia. Tullow recently completed the acquisition of Energy Africa, which takes the number of countries in which Tullow is active to sixteen.

In the North Sea, Tullow's principal interests are in the CMS and the Thames/Hewett group of licences and the Bacton onshore gas-processing terminal, which it operates.

In Africa, Tullow has production in Gabon, Cote d'Ivoire, Congo (Brazzaville) and Equatorial Guinea, and is actively pursuing the development of the Kudu gas field in Namibia. Tullow is also active in exploration programmes in Morocco, Mauritania, Senegal, Cameroon, Uganda and Egypt.

In South Asia, Tullow has production and exploration interests in Pakistan and exploration activities in India, in addition to Bangladesh.

For further information see www.tullowoil.com.