Sedco Energy rig, offshore Ghana. STRONG PERFORMANCEThe Group had an excellent year in 2011. Record financial results, strong operational performance and industry leading exploration success were underpinned by good progress in key creating shared prosperity initiatives and a strong performance against our corporate responsibility targets and objectives.$2.3 BILLIONSALES REVENUETullow delivered record financial results in 2011. Sales revenue grew 111% to $2.3 billion as a result of a 41% increase in sales volumes and significantly higher average oil and gas prices. Profit after tax increased 670% to $689 million. The Group's financial performance was complemented by a 74% Exploration and Appraisal (E&A) success ratio. $2.9 BILLIONUGANDA FARM-DOWNTullow's commitment to reaching an agreement that will benefit all parties, and to building durable relationships, was rewarded in early 2012 with the completion of the farm-down of two thirds of our Ugandan licences to CNOOC and Total. This partnership is now ready to commence development of the country's oil industry, which creates the opportunity to transform the economy of Uganda.$1.8 BILLION OPERATING CASH FLOWHigher production and increased commodity prices drove operating cash flow 132% higher to $1.8 billion. In 2011 this cash flow, together with increased debt facilities, was used to fund $1.7 billion in capital investment in exploration and development activities, $502 million in acquisition expenditure, $114 million in dividend payments and the servicing of the Group's debt.795% INCREASEBASIC EARNINGS PER SHAREBasic earnings per share grew 795% to 72.5 cents per share, and the total dividend payout doubled in respect of 2011 to 12.0 pence per share. Over five years to the end of 2011, Tullow delivered total shareholder returns of 266%.Performance highlights

In 2011, we achieved our lowest LTIFR. While we had no major environmental incidents during the year, there are trends in our emissions, water usage and spills that we are addressing with new standards and enhanced reporting. We are saddened to report one contractor fatality in 2011 from malaria. Year to date in 2012, we have had two third-party vehicle fatalities.Staff turnover in 2011 was 3.2%. Our goal is to be the employer of choice in the industry so that we attract and retain the best people. Talent management and succession planning are very important for our future growth plans and delivery of our major projects.We spent $11.6 million on social enterprise projects in 2011. The single largest project funded was the pilot phase of the Tullow Group Scholarship Scheme. Over 80% of our total social enterprise investment was in education, health and enterprise development. 93% of our total social enterprise investment was in Africa. 036912150123450708091011Hours worked (million)LTIFRHours workedLTIFR0204060801000250500750100012500708091011Number of employeesNumber of employees Staff turnover5343711,207669935Staff turnover02.254.506.759.0011.2511.62.61.82.10.90708091011NEW CODE OF BUSINESS CONDUCTTo date 35% of staff have received Code of Business Conduct compliance training, including those in key or high risk posts. 17 companies in Bangladesh and 72 companies in Kenya have attended industry partner workshops.TWO MULTI-STAKEHOLDER FORUMSWe have held two forums since the beginning of 2011. These brought together Tullow senior management and operational teams with leading experts from Civil Society Organisations (CSOs), Non-Governmental Organisations (NGOs), policy organisations and wider business.81% ENGAGEMENTOur 2011 global employee and contractor survey, Talkback, shows that we are achieving significantly higher levels of engagement than the energy sector benchmark. 79% LOCAL WORKFORCEAt the end of 2011, 85% of our workforce in Ghana and 84% in Uganda were local. Localisation is a key strategic pillar for us, as it aligns our business objectives with those of our stakeholders. In the long term it also provides us with a skilled and motivated group of people for development and succession planning. NEWONLINE SUPPLIER CENTREThis was created to provide all suppliers, but particularly local companies, with an understanding of how to do business with Tullow. To date over 900 companies have registered with us.$147 MILLION LOCAL CONTENT EXPENDITUREWe spent $147 million with local suppliers in 2011. Expenditure was lower in Ghana due to a natural decrease in activity after achieving First Oil in 2010. Expenditure in Uganda grew 173% to $73 million as our project there progressed during the year. Expenditure in Kenya was $24 million.0.38 LOST TIME INJURY FREQUENCY RATE (LTIFR)$11.6 MILLION SOCIAL ENTERPRISE EXPENDITURE3.2% STAFF TURNOVERMore information PageCode of Business Conduct 58Talkback Survey 69OVERVIEW17www.tullowoil.com