Suriname

Key, through its 50% shareholding in Portsea Oil and Gas Pty Ltd owns a net 1.75% interest in 2 prospective onshore exploration blocks, Coronie to the west and Uitkijk to the east. Both blocks are adjacent to the Tambaredjo and Calcutta Oil Fields on the coast of Suriname. The Tambaredjo Field has been in steady production since 1982 and combined with the Calcutta field has been estimated as containing 1 billion barrels STOIIP of oil. The Calcutta Oil Field is also being developed by the government owned company, Staatsolie Maatschappij Suriname NV, and is adjacent to Tambaredjo and where successful drilling has resulted in wells being placed on production.

The republic of Suriname is located in northern South America and borders with Brazil to the south, Guyana to the west and French Guyana to the east. To the north is the Atlantic Ocean providing a gateway to the Caribbean and the United States of America. The systematic search for petroleum began in the early sixties but petroleum development took a leap forward after 1980 when a new petroleum code was enacted and Staatsolie Maatschappij Suriname NV, the State Oil Company of Suriname, was formed. In 1992 an oil production plant was established and Staatsolie started commercial petroleum activities with the development of the Tambaredjo Oil Field located approximately 55 kilometres west of the capital city of Paramaribo.

The earning programs require Tullow Oil plc, through a wholly-owned subsidiary, to drill up to 25 wells or outlay total expenditure of US$8.5 million, whichever is first met. The US$8.5 million earning program is being sole funded by Tullow. Suriname is part of the Guyana Basin. Several play types have now been recognized within the existing petroleum system. The Tambaredjo Field produces 16° API oil from this formation and the producing sands have a porosity of 33-42% and high permeability.