Tullow Oil plc Preliminary Results for the year ended December 31, 2000.

    Business Editors

      LONDON--(BUSINESS WIRE)--March 23, 2001--Tullow Oil plc
(LSE:TLW), the international oil and gas exploration, development and
production company, today announced preliminary results for the year
ended December 31, 2000.

HIGHLIGHTS

      Tullow Oil plc is an independent oil and gas exploration,
development and production company with interests in the North Sea,
Onshore UK, Pakistan, Bangladesh, India, Cote d'Ivoire, Romania and
Egypt.

Financial Position Strengthens

      -   Turnover up 50% to - 12.5m (1999: - 8.35m)

      -   Operating Profit Before Exploration costs increased by 125% to
        - 2.12m (1999: - 944,622)

      -   Cash on hand at year end of - 57 million

      -   No Turnover or profit contribution from UK Acquisition

A Transforming Acquisition

      -   (pound)201m purchase of BP Amoco southern North Sea assets
        near completion

      -   Murdoch package already completed/completion of Thames/Hewett
        package due by end March

      -   Proven & probable reserves increased by over 30%

      -   Production increased to nearly 25,000 boepd

      -   First North Sea drilling success on "K" well in Murdoch
        acreage

      -   Scope for further low-risk development of reserves

Success on Onshore UK & International Operations

      -   Full year of production in Pakistan

      -   Cote d'Ivoire development progressing, on target for first oil
        before end 2001

      -   Bangladesh, Block 9 signing scheduled for early April

      -   Successful appraisal/development well in North Yorkshire

Other Developments

      -   Appointment of John Lander to the Board of Tullow

      -   Re-domicile of Tullow to the UK completed - entered All-Share
        Index March 19, 2001

Commenting on the results, Aidan Heavey, Managing Director, said:

      "In the year 2000, Tullow took a significant step forward in
achieving its goal of becoming a fully integrated oil and gas
exploration and production business with a focus on active
exploration. Several major investments made by the Company in recent
years are coming to fruition and substantial increases in turnover and
profitability can be expected in 2001. In addition, the North Sea
acquisition has given the company the critical mass and cash flow it
needs to go forward and achieve its strategic objectives and we look
forward to the many opportunities that lie ahead of us."

Introduction

      I am pleased to announce the results for 2000 and to report to you
on major advances made by Tullow during that period.
      On the operating front, I am pleased to report significant
improvement in turnover and operating profit for 2000. The other key
event occurred in July, when Tullow announced the acquisition of a
portfolio of southern North Sea assets from BP Amoco ARCO for
(pound)201 million - a company-transforming acquisition. The purchase
did not impact on production revenues for 2000 but will be a very
significant contributor to revenue and profitability in the current
year.
      The success of the K well, which was announced earlier today,
demonstrates the potential for extending the reserves of our new North
Sea acreage, while exploration opportunities in Bangladesh and Algeria
offer outstanding potential in the medium term.
      Finally, in December 2000, Tullow completed its re-domicile to the
United Kingdom and has recently entered the All-Share Index.

Results

      The combination of strong resource prices and a full year of
production in Pakistan resulted in a 50% increase in Tullow's turnover
to - 12.5m and a 125% increase in its operating profitability before
exploration costs. While revenues from North Yorkshire were lower than
1999, West Firsby had an excellent year and increased its revenue by
c.60%. The principal investments in 2000 were on Ivory Coast
development and deposits and related costs associated with the UK
acquisition. Cash on hand at year end of - 57 million represents the
retained balance of the equity funding raised in August 2000.
      The Company has fully adopted FRS 15 in respect of 2000. The
Exploration Cost write-off of - 1.1m reflects the relatively low level
of exploration undertaken due to the focus in 2000 on development
projects, notably Cote d'Ivoire and the concentration on the UK
acquisition. The costs of re-domicile have been written off as an
exceptional item, in line with established precedent and best
accounting practice.
      Following its re-domicile and the completion of the southern North
Sea acquisition, Tullow will in future report in Sterling. We expect
our next set of figures to show very significant growth in turnover
and profitability following the full integration of the UK offshore
assets into the Tullow Group.

Acquisition of Southern North Sea Assets from BP Amoco Arco

      Tullow's strategy is to become a fully integrated oil and gas
exploration and production business with a continuing focus on active
exploration.
      To facilitate this strategy, in early 2000 the Group undertook a
major strategic review encompassing all elements of its existing asset
portfolio, production profile and funding options. As a result of
their review, the Directors determined that a significant gas
production purchase was central to the realization of its objectives.
      A major opportunity arose when, under a condition of the merger of
BP Amoco with ARCO, certain southern North Sea interests held by ARCO
and Britoil were offered for sale in a competitive bid process. In a
single transaction, the acquisition met all the key targets identified
in our strategic review. The consideration was Stg (pound)200.5
million and the acquisition was partly funded by a very successful
equity placing in August, which raised approximately Stg (pound)41.8
million (net of expenses), and a five year syndicated loan providing
up to Stg (pound)125 million in financing.
      Following completion, Tullow will be one of the largest producers
of gas in the North Sea. In addition, the existence of high quality
exploration acreage and a number of undeveloped discoveries gives
major scope for further low risk reserve additions. The building of an
organization to manage the North Sea assets and its integration into
the Tullow Group is at an advanced stage. Since the announcement of
the transaction, the assets being acquired have performed in line with
expectations and the Company will benefit from their contribution in
the current year.
      This acquisition, which increases Tullow's proven and probable
reserves by over 30% and raises the production profile immediately to
almost 25,000 boepd, positions the Company ideally both to benefit
from further growth and development of the UK and European gas markets
and to develop and extend its international exploration activities in
an optimal manner.
      This was a protracted and difficult sale process which was subject
to the approval of the UK Government, the European Commission, license
partners and Tullow shareholders. I would like to thank all who
assisted the Company during this process, in particular the team of
legal, financial and technical advisors who complemented a focused and
dedicated Tullow team.

International Operations

      The Espoir field development in Cote d'Ivoire has been progressing
and remains on target for first oil this year. In addition to the
current development, a number of further exciting exploration
prospects have recently been identified by seismic. These have the
potential to lead to major reserve increases.
      During 2000, significant progress continued to be made in relation
to the finalization of the grant of Block 9 in Bangladesh under the
second licensing round. In March the Production Sharing Contract was
initialled and the first phase exploration program was agreed. I am
now delighted to announce that we have been informed by the
Authorities in Bangladesh that the formal signing ceremony for the
license will occur in Dhaka in early April. We look forward to
starting work on this outstandingly prospective area as soon as
possible.
      Production continues from the Sara and Suri fields in Pakistan to
the Guddu Power station. While a number of exploration wells drilled
in the area during 2000 failed to prove additional reserves, Pakistan
nevertheless remains a core area for Tullow and where it retains some
very exciting exploration acreage.
      In India work continued on finalising the Production Sharing
Contracts of a number of Blocks. Since the year end Tullow has signed
a farm out agreement with an Indian company, Reliance Industries, in
relation to 5 of these Blocks.
      Exploration continued in Romania where a preliminary seismic study
on Blocks EPI-3 and EPI-8 has yielded very encouraging results and a
further program of seismic acquisition is planned for spring 2001.
      Production from our North Yorkshire fields declined during the
year but has now increased again following the successful
appraisal/development well, Marishes-2. This well also discovered gas
in the previously untested Brotherton formation and will secure
supplies to Knapton for the foreseeable future.
      On March 19, 2001, Tullow executed an Agreement with AGIP Algeria
Exploration B.V. to acquire a 30% participating interest in Block
222b, onshore Algeria. It is the first time that Tullow has undertaken
a project in Algeria.

Board Appointment

      To reflect Tullow's commitment to long term participation in the
North Sea and the importance of this package of assets to the Group
going forward, I am delighted to announce that John Lander, Managing
Director of the Company's North Sea subsidiary, Tullow Exploration
Limited, has been appointed to the Board of Tullow.
      John has been involved in international oil and gas exploration
for over 30 years and from 1989 to 1995 was Managing Director of Pict
Petroleum plc, which in 1996 merged with Premier Oil plc. More
recently he was Executive Director UK for British Borneo Petroleum
Syndicate plc and Managing Director of Vectis Petroleum Limited, a
private oil & gas consultancy company. As a former President of the
PESGB, John brings a wealth of experience in the areas of exploration
and new ventures, both in the North Sea and internationally and I look
forward to working with him.

Re-domicile

      In 1999, Tullow announced its intention to re-domicile to the UK.
This process was completed in December, making the company eligible
for inclusion in all major indices and greatly increasing the number
of investors who can invest in the company, and on Monday, March 19th,
the company entered the All Share Index. While this means that
future Annual General Meetings will be held in the UK, Tullow is
committed to retaining strong links with its loyal Irish shareholder
base and intends to hold a similar meeting to facilitate Irish
shareholders on the day following its statutory UK AGM.

Conclusion

      I would like to thank all Tullow employees for their unceasing
commitment and enthusiasm during a year of major progress for the
group and our shareholders for their support in making this advance
possible.

      I look forward with great confidence to a very bright future for
Tullow.

Patrick Plunkett
Chairman

-0-
*T



                           TULLOW OIL PLC

         PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2000

               CONSOLIDATED PROFIT AND LOSS ACCOUNT


                               NOTES     2000              1999
                                         ----              ----

TURNOVER                              12,495,964         8,354,742
                                    ------------      ------------
COST OF SALES
Operating Costs                        4,513,591         5,022,977
Depletion and Amortization             3,923,985         1,482,012
                                    ------------      ------------
                                       8,437,576         6,504,989
                                    ------------      ------------
GROSS PROFIT                           4,058,388         1,849,753
                                    ------------      ------------

Administrative Expenses                1,866,945           828,986
Depreciation                              68,656            76,145
                                    ------------     -------------
                                       1,935,601           905,131
                                    ------------     -------------

OPERATING PROFIT BEFORE
 EXPLORATION COSTS                     2,122,787           944,622

Exploration Costs Written Off         (1,103,544)      (19,737,425)
                                    ------------     -------------

OPERATING PROFIT/(LOSS)                1,019,243       (18,792,803)

Group Reorganization Costs       3      (542,172)                -


PROFIT/(LOSS) ON ORDINARY
 ACTIVITIES BEFORE INTEREST              477,071       (18,792,803)
                                    ------------     -------------
Interest Receivable and
 Similar Income                        1,554,619           241,269

Interest Payable                        (758,573)         (724,533)
                                    ------------     -------------


PROFIT/(LOSS) ON ORDINARY
 ACTIVITIES BEFORE TAXATION            1,273,117       (19,276,067)

Taxation                                       -                 -


NET PROFIT/(LOSS)                      1,273,117       (19,276,067)
                                     ===========     ==============
EARNINGS/(LOSS)
 PER SHARE - EURO CENTS          4

             -  Basic                       0.41             (8.05)
             -  Diluted                     0.40             (7.55)



                               TULLOW OIL PLC

              PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2000

                  STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                          2000               1999
                                          ----               ----

Profit/(Loss) for the Year             1,273,117       (19,276,067)
Currency Translation Adjustments on
Foreign Currency Net Investments      (2,071,737)         (749,970)
                                      -----------       -----------
Total Recognized Losses                 (798,620)      (20,026,037)
                                      ===========       ===========




            RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                          2000              1999
                                          ----              ----


Profit/(Loss) for the Year             1,273,117       (19,276,067)
Currency Translation Adjustments      (2,071,737)         (749,970)
Shares Issued & Share Premium
 on Shares Issued                     67,397,616        29,304,440
                                      ----------        ----------
Net Increase in Shareholders' Funds   66,598,996         9,278,403
Shareholders' Funds - At 1st January  60,867,007        51,588,604
                                      ----------        ----------
Shareholders' Funds - At
 December 31st                       127,466,003        60,867,007
                                     ===========        ==========



                                 TULLOW OIL PLC

                PRELIMINARY RESULTS FOR YEAR ENDED DECEMBER 31, 2000

                            CONSOLIDATED BALANCE SHEET

                              AS AT DECEMBER 31, 2000


                               NOTES     2000              1999
                                         ----              ----


FIXED ASSETS
Intangible Assets                     30,340,119        25,825,659
Tangible Assets                       57,727,136        39,581,445
                                      ----------        ----------
                                      88,067,255        65,407,104
CURRENT ASSETS                        ----------        ----------
Debtors                               13,109,871         3,234,651
Cash at Bank and in Hand              56,976,872        28,447,061
                                      ----------        ----------
                                      70,086,743        31,681,712
CREDITORS - Amounts falling due
 within one year
Bank Loans and Overdrafts              2,085,451         2,394,613
Other Creditors                       12,912,182        17,476,300
                                      ----------        ----------
                                      14,997,633        19,870,913

NET CURRENT ASSETS                    55,089,110        11,810,799
                                      ----------        ----------
TOTAL ASSETS LESS
 CURRENT LIABILITIES                 143,156,365        77,217,903


CREDITORS - Amounts falling due
 after more than one year
 Bank Loans                          (15,132,072)      (15,879,413)

PROVISION FOR LIABILITIES AND CHARGES
Decommissioning Costs                   (558,290)         (471,483)
                                     -----------        -----------

NET ASSETS                           127,466,003        60,867,007
                                     ===========        ===========


CAPITAL AND RESERVES
Equity Share Capital                  56,593,933        44,181,575
Merger Reserve                   5   111,848,161        56,862,903
Profit and Loss Account          6   (40,976,091)      (40,177,471)
                                     -----------        ----------

EQUITY SHAREHOLDERS' FUNDS           127,466,003        60,867,007
                                     ===========        ==========




                                   TULLOW OIL PLC

                PRELIMINARY RESULTS FOR YEAR ENDED DECEMBER 31, 2000

                          CONSOLIDATED CASH FLOW STATEMENT




                               NOTES     2000              1999
                                         ----              ----


Net Cash Inflow from
 Operating Activities            7     3,418,893         2,213,769


Returns on Investments
 and Servicing of Finance        8        52,758        (1,176,461)


Capital Expenditure                  (41,282,953)      (19,088,265)
                                      ----------        ----------

Net Cash Outflow before Financing    (37,811,302)      (18,050,957)

Financing                        9    67,397,616        29,304,440
                                      ----------        ----------


Increase in Cash in the Year          29,586,314        11,253,483
                                      ==========        ==========



Analysis of Changes in Net Funds/(Debt)

                             31.12.99       Cash Flow       31.12.00
                             --------       ---------       --------

Cash at Bank and in Hand     28,447,061     28,529,811     56,976,872
Bank Loans
       Due within one year   (2,394,613)       309,162     (2,085,451)
       Due after more than
         one year           (15,879,413)       747,341    (15,132,072)
                            ------------    ----------     -----------
                             10,173,035     29,586,314     39,759,349
                            ============    ==========     ===========


                                 TULLOW OIL PLC

              PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2000

                      NOTES TO THE PRELIMINARY ACCOUNTS


Note 1. Basis of Accounting

The company was incorporated in England and Wales as a public limited
company with registered number 3919249 on February 4, 2000. Under a
scheme of arrangement under Section 201 of the Companies Act, 1963 of
Ireland holders of the ordinary shares in the Irish registered company
Tullow Oil plc received one ordinary share in the company, being the
new UK holding company of the same name, for each ordinary share held.
This scheme became effective on December 18, 2000.

The consolidated accounts of the group have been prepared using merger
accounting principles, as if businesses and assets comprising the
group had been part of the group for the whole of 2000. Comparative
accounts have been presented on the same basis. The accounts have been
prepared under the historical cost convention and in accordance with
applicable accounting standards.

Note 2. Basis of Preparation

The financial information presented above does not constitute
statutory accounts within the meaning of section 240 of the Companies
Act 1985. An audit report has not yet been issued on the accounts for
the year ended December 31, 2000 nor have they been delivered to the
Registrar of Companies.

Note 3. Group Reorganisation Costs

The costs associated with the restructuring of the Group under a
scheme of arrangement under Section 201 of the Companies Act, 1963 of
Ireland amounted to - 542,172.

Note 4. Earnings/(Loss) Per Ordinary Share

The calculation of basic and diluted earnings/(loss) per ordinary
share is based on the following numbers of shares:

*T

                                             2000              1999
For basic earnings/(loss) per share        Millions          Millions

  Weighted Average Number of Shares in
  Issue for the Year                         307               239

  Effect of Dilutive Potential Ordinary
   Shares (Share Options)                      6                 3
                                            ------            ------
For Diluted Earnings/(Loss) per Share        313               242
                                            ======            ======

*T

Note 5. Merger Reserve

On December 18, 2000 the new UK holding company issued 352,467,012
ordinary shares in exchange for the entire share capital of the
previous Irish registered holding company. Shareholders received one
Stg10p share for each - 0.13 share held. This transaction has been
reflected in accordance with the merger accounting provisions of FRS
6. This gave rise to a merger reserve of - 111,848,161 at December 31,
2000 and - 56,862,903 at December 31, 1999.

*T

Note 6. Profit and Loss Account

                                         2000              1999
                                         ----              ----

At January 1                         (40,177,471)      (19,436,595)
Profit/(Loss) for Year                 1,273,117       (19,276,067)
Currency Translation Adjustments      (2,071,737)         (749,970)
Re-denomination and re-nominalization
 of share capital                              -          (714,839)
                                      ----------        ----------

At December 31                       (40,976,091)      (40,177,471)
                                      ==========        ==========


*T

Note 7. Reconciliation of operating profit to operating cash flows

*T

                                         2000             1999
                                         ----             ----

Operating Profit/(Loss)                1,019,243       (18,792,803)
Depletion and Amortization             3,923,985         1,482,012
Depreciation of Other Fixed Assets        68,656            76,145
Exploration Costs                      1,103,544        19,737,425
(Increase)/Decrease in Trade Debtors  (2,154,363)         (347,120)
Loss on Sale of Other Tangible
 Fixed Assets                                  -            58,110
Group Reorganization Costs              (542,172)                -
                                      ----------        ----------
Net Cash Inflow from
 Operating Activities                  3,418,893         2,213,769
                                      ----------        ----------

Note 8. Returns on Investments and Servicing of Finance

Interest Receivable                    1,554,619           241,269
Interest Payable                      (1,501,861)       (1,417,730)
                                      ----------        ----------
                                          52,758        (1,176,461)
                                      ----------        ----------
Note 9. Financing

Issue of Ordinary Shares              71,775,957        31,529,428
Costs of Share Issues                 (4,378,341)       (2,224,988)
                                      ----------        ----------
                                      67,397,616        29,304,440
                                      ----------        ----------

*T

Note 10. Dividends No dividend is proposed (1999:nil).

Note 11. 2000 Annual Report and Accounts

The Annual Report and Accounts will be posted to all shareholders in
due course.

*T

                        Unaudited Proven and Probable Reserves Summary

                                EUROPE                  AFRICA
                       ------------- ----------- ---------------------
                           Oil          Gas         Oil         Gas
                          mmbbl         bcf        mmbbl        bcf

Jan 1, 2000              0.12           14.89      33.01       40.74
Revisions                0.10            3.43         -           -
Production              (0.04)          (1.09)        -           -

                       ------------- ----------- ----------- ----------

Dec 31, 2000             0.18           17.23      33.01       40.74

                       ------------- ----------- ----------- ----------



                    ASIA                       TOTAL
            ----------------------------------------------------------
               Oil        Gas        Oil         Gas      Petroleum
              mmbbl       Bcf       Mmbbl        Bcf          Mmboe

Jan 1, 2000     -       215.07      33.13       270.70        78.25
Revisions       -       (26.70)      0.10       (23.27)       (3.78)
Production      -        (4.86)     (0.04)       (5.95)       (1.03)

             --------------------------------------------------------

Dec 31, 2000    -       183.51      33.19       241.48        73.44

             --------------------------------------------------------

*T

      Tullow Oil plc is an UK company with primary offices in Dublin
(Ireland) and London (UK). Tullow Oil plc is a dynamic player in the
international oil & gas industry. The company has interests in 30
licenses spread over three main areas - Indian Subcontinent, Africa
and Europe and has regional offices in each area.

      Tullow Oil's shares are listed on London and Irish Stock
Exchanges. Prices for the ordinary shares may be accessed on Bloomberg
under the symbol TLW LN. For further information, visit Tullow's web
page at http:\\www.tullowoil.ie.

    --30--sm/ny*

    CONTACT: Tullow Oil plc, London
             Tom Hickey
             011-44-20-7976-2600
             - or -
             Taylor Rafferty, New York
             Brian J. Rafferty
             212/889-4350

    KEYWORD: UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: ENERGY OIL/GAS EARNINGS