Tullow Oil plc is an oil and gas company with over 2/3 and growing of production coming from Africa and the remaining coming from the North Sea and South East Asia. The company’s large offshore Jubilee field in Ghana should help double production and be a major cashflow driver. The company is further expanding its exploration and development with 84% of its CAPEX devoted to the African continent and specifically 50% devoted to Ghana & Uganda. Because of its strategy to explore Africa, the company is facing large political risk which has previously resulted in lost contracts with the Congolese government and a tax dispute with Uganda and Heritage Oil which has yet to be settled. The company’s main strategy is to find larger scale reserves with neighbouring, previously discovered basins in East and West Africa. Because of this strategy, Tullow has had good exploration and appraisal success in 2010 and in the beginning of 2011. Volatility in oil & gas prices remains a risk for the company’s operating results as the company does not have a complete hedging program.