Tullow profits fall on lower oil prices

Tullow added on Wednesday it continued to hold talks with the Ugandan government about bringing in China's CNOOC <0883.HK> and French oil major Total as partners in its Lake Albert oil fields.

The company added that its Jubilee field project in Ghana remained on budget and on track for startup in the fourth quarter of 2010.

Tullow also upgraded its reserves estimates for its Tweneboa discovery, saying P50 or most likley recoverable resources would be 400 million barrels, up from an earlier estimate of 250 million barrels.

Analysts had forecast net income to fall to between 1 million and 11 million pounds. As Tullow's assets are mainly undeveloped oil fields and exploration acreage, investors focus on new oil finds and reserves upgrades rather than day-to-day profitability.

(Reporting by Tom Bergin, Editing by Hans Peters)