Tullow Agrees to Sell Netherlands Blocks L&Q

RNS Number : 9329Q

Tullow Oil PLC

05 September 2014

News Release

Tullow agrees gas assets sale in Netherlands Blocks L&Q

5 September 2014 - Tullow Oil plc ("Tullow" or "the Group") announces that its subsidiary Tullow Exploration & Production B.V., has entered into an agreement to sell its operated and non-operated L12/L15 block interests and non-operated Q4 and Q5 block interests to AU Energy B.V., a subsidiary of Mercuria Energy Group Limited for a consideration of €62.7 million (US$81.1 million). The transaction involves the sale of a subsidiary, Tullow Netherlands B.V., which will, at the time of completion, hold all Tullow Oil L12/L15 and Q4 and Q5 interests. The transaction has an effective date of 1 January 2014 and completion, expected during early 2015, is conditional upon ministerial consent of the intra-group transfer of the L12/L15 and Q block non-operated licence interests to Tullow Netherlands B.V.

The Tullow L12/L15 and Q block portfolio comprises a suite of seven licence interests and six developed fields producing 1,500 boepd net to Tullow. Tullow's guidance for North Sea production will be revised appropriately when this sale completes.

Aidan Heavey, Chief Executive of Tullow Oil plc, commented today,

"The sale of the Tullow's interests in Blocks L & Q is a further step towards the Group's planned divestment of our North Sea gas assets in order to focus our business on conventional light oil. The previously announced agreement to sell part of our interests in the UK Schooner and Ketch unit to Faroe Petroleum for a total consideration of
US$75.6 million is on track to complete before the end of the year, and the divestment of our remaining UK & Dutch gas assets is progressing well."

FOR FURTHER INFORMATION CONTACT:

Tullow Oil plc

(London)

(+44 20 3249 9000)

Chris Perry (Investor Relations)

James Arnold (Investor Relations)

George Cazenove (Media Relations)

Citigate Dewe Rogerson

(London)

(+44 207 638 9571)

Martin Jackson

Shabnam Bashir

Murray Consultants

(Dublin)

(+353 1 498 0300)

Pat Walsh

Joe Heron

Notes to Editors

Tullow Oil plc

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index. The Group has interests in over 140 exploration and production licences across 21 countries which are managed as three regional business units: West & North Africa, South & East Africa and Europe, South America and Asia.

L&Q Block Licences

BLOCK	LICENCE	FIELD	LICENCE INTEREST (%) Tullow Netherlands B.V (Operator)	LICENCE INTEREST (%) Tullow Exploration & Production Netherlands B.V	UNITISED INTEREST (%)
L Blocks	L12c		30	15
	L12d		30	22.5
	L15d		30	15
	L12a	L12B		22.5	16.13807
	L12b & L15b	L12-C, L15-A		15	16.13807
Q Blocks	Q4	Q4-A		19.8
		Q1-B		19.8	4.95
		Q4-B			17.105
	Q5d			10