Tullow Oil : 398KB

Audit of Petroleum Interests of Tullow Oil

At 31st December 2020

Tullow Oil plc

Registered office: TRACS International Limited East Wing First Floor, Admiral Court,

Poynernook Road, Aberdeen AB11 5QX [phone] [e-mail]

This report was prepared in accordance with standard geological and engineering methods generally accepted by the oil and gas industry, in particular the 2018 SPE PRMS. Estimates of hydrocarbon reserves and resources should be regarded only as estimates that may change as further production history and additional information become available. Not only are reserves and resource estimates based on the information currently available, these are also subject to uncertainties inherent in the application of judgemental factors in interpreting such information. TRACS International Limited shall have no liability arising out of or related to the use of the report.

Status:Final

Date:

April 2021

Revision: 00

Approved by:

Mike Wynne

YE 2020 Audit for Petroleum Interests of Tullow Oil

Qualification

TRACS International Limited ("TRACS") was founded in 1992, and currently has over 50 petroleum engineers, geoscientists and petroleum economists working from two office locations. TRACS has extensive Reserves and asset valuation experience and are recognised as industry reserve, risk and valuation experts. Note that in 2008, TRACS was bought by AGR and became AGR TRACS International Ltd. ("AGR TRACS" a wholly owned subsidiary of AGR). In April 2019, AGR TRACS was sold and became TRACS International Ltd. (an independent company). All contracts and ownership rights to prior work performed by AGR TRACS were retained by TRACS during that transaction.

The Tullow asset review and evaluation was performed by senior TRACS staff with an average 30+ years in the oil and gas industry. The team members all hold at least a bachelor's degree in geoscience, petroleum engineering or related discipline. The preparation of this report has been supervised by Dr. Mike Wynne. Dr. Wynne has over 25 years of experience in the evaluation of oil and gas fields, preparation of development plans and assessment of Reserves and Resources.

This assessment has been conducted within the context of the TRACS understanding of the effects of petroleum legislation, taxation, and other regulations that currently apply. However, TRACS is not in a position to attest to property title, financial interest relationships or encumbrances thereon for any part of the appraised properties.

It should be understood that any determination of resource volumes, particularly involving petroleum developments, may be subject to significant variations over short periods of time as new information becomes available and perceptions change. This is particularly relevant to exploration activities which by their nature involve a high degree of uncertainty.

All volumetric calculations are based on independent mapping undertaken by TRACS using data provided to TRACS. The reservoir properties input to the volumetric calculations and the associated volume uncertainty ranges are based on TRACS experience over more than 20 years of performing evaluations, and the statement on risking in this report represents the independent view of TRACS. The risking of contingent and prospective Resources has been done in accordance with the LSE/AIM Guidance note for Mining, Oil and Gas Companies - June 2009 ("LSE/AIM Guidelines").

TRACS has carried out this work using the June 2018 SPE/WPC/AAPG/SPEE Petroleum Resources Management System (PRMS) as the standard for classification and reporting. A summary of the PRMS is found in Appendix A.

TRACS will receive a fee for the preparation of this report in accordance with normal professional consulting practices. This fee is not dependent on the findings of this report and TRACS will receive no other benefit for the preparation of this report.

Neither TRACS nor the individuals who are responsible for authoring this report, nor any directors of TRACS, have at the date of this report, nor have had within the previous two years, any economic or beneficial interest (present or contingent) in Tullow. TRACS, the individuals responsible for authoring this report and the directors of TRACS consider themselves to be independent of Tullow Oil, its directors, senior management and its other advisers.

This report is for the use of Tullow and its bankers and financial advisors. TRACS hereby consents to using the report or references to the report in any applicable disclosure document, provided that no portion be used out of context or in such a manner as to convey a meaning which differs from that set out in the whole. The report may not be used for any other purpose without TRACS' prior written approval.

TRACS International Limited

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		YE 2020 Audit for Petroleum Interests of Tullow Oil
Contents
Qualification ............................................................................................................................	1
1	Portfolio Overview ...............................................................................................................	4
	1.1	Introduction ............................................................................................................	4
	1.1.1	Ghana assets ..........................................................................................................	4
	1.1.2	Gabon Assets ..........................................................................................................	5
	1.1.3	Côte d'Ivoire Assets .................................................................................................	8
	1.1.4	Kenya Assets...........................................................................................................	8
	1.1.5	Guyana Assets.......................................................................................................	10
2	Overview of audits ............................................................................................................	11
3	Reserves ..........................................................................................................................	12
	3.1	Jubilee Field ..........................................................................................................	12
	3.2	TEN Fields.............................................................................................................	13
	3.3	Gabon Fields .........................................................................................................	14
	3.4	Côte d'Ivoire Fields ................................................................................................	14
4	General Methodology and Assumptions for Economics............................................................	15
	4.1.1	Technical assessment .............................................................................................	15
	4.1.2	Product price deck .................................................................................................	15
	4.1.3	Economic models ...................................................................................................	16
	4.1.4	Base Case .............................................................................................................	16
	4.1.5	Sensitivity Case .....................................................................................................	16
5	Economic Results ..............................................................................................................	17
	5.1.1	Base Case .............................................................................................................	17
	5.1.2	Impact of hedging on NPV 10 ..................................................................................	17
6	Contingent Resources ........................................................................................................	18
	6.1	Jubilee Field ..........................................................................................................	18
	6.2	TEN Fields.............................................................................................................	19
	6.3	Gabon fields ..........................................................................................................	19
	6.4	Côte d'Ivoire Fields ................................................................................................	20
	6.5	Kenya fields ..........................................................................................................	21
	6.6	Guyana discoveries ................................................................................................	21
7	Glossary of Terms .............................................................................................................	22
		Summary of 2018 SPE Petroleum Resources Classification ................................	23

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Tables
Table 1-1 Summary of Gabon assets ..........................................................................................	5
Table 1-2 Ezanga Complex fields ................................................................................................	6
Table 1-3 Summary of Kenya assets...........................................................................................	9
Table 2-1 List of long form reports ...........................................................................................	11
Table 3-1 Oil and gas Reserves for all assets attributable to Tullow ..............................................	12
Table 3-2 Oil and gas Reserves for Jubilee field attributable to Tullow ...........................................	13
Table 3-3 Oil and gas Reserves for the TEN fields attributable to Tullow ........................................	13
Table 3-4 Oil Reserves for the Gabon assets attributable to Tullow ...............................................	14
Table 3-5 Oil and gas Reserves for the Côte d'Ivoire fields attributable to Tullow............................	14
Table 5-1 NPV10 Results for 2P Reserves ..................................................................................	17
Table 6-1 Oil and gas CR for all assets attributable to Tullow .......................................................	18
Table 6-2 Oil and gas CR for Jubilee field attributable to Tullow....................................................	19
Table 6-3 Oil and gas CR for TEN fields attributable to Tullow ......................................................	19
Table 6-4 Oil CR for Gabon fields attributable to Tullow...............................................................	20
Table 6-5 Oil and gas CR for Côte d'Ivoire fields attributable to Tullow ..........................................	20
Table 6-6 Oil CR for Kenya fields attributable to Tullow ...............................................................	21
Table 6-7 Oil and gas CR for all Guyana discoveries attributable to Tullow .....................................	21
Table A-1 Summary of 2018 SPE Petroleum Resources Classification ............................................	23
Table A-2 SPE PRMS Petroleum Resources Classification Framework .............................................	24

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