Tullow clears €58m for exploration in 2005

Oil and gas exploration company Tullow Oil has approved a total exploration budget of some £40m (€58m) for 2005, the company said in a trading update today.

The group has interests in more than 90 production and exploration licences in 16 countries and is now focusing on three core areas - the UK North Sea, West Africa and South Asia.

Tullow spent more than $1bn (€780.5m) on acquisitions and investments during the year. Energy Africa, acquired at a cost of $570m (€445m), has been integrated and consolidated with effect from June 1 last year. There will be a one-off charge in 2004 of approximately €2.9m for post-acquisition reorganisation costs.

The acquisition of the Schooner and Ketch producing assets and surrounding acreage for £200m (€€290m) was announced on December 20, 2004. A development team is now in place and the transaction is on schedule to complete at the end of the first quarter, 2005.

In the UK, development drilling at Horne and Wren has been successfully completed with both wells suspended for future production. The project is on budget and on schedule for first gas in the second quarter, 2005, Tullow said today.

The group’s full-year results are scheduled for release on April 12.