A plan of development for the Alen Field, offshore Equatorial Guinea has been
approved by the authorities in the country. The Field will use storage capacity
on the nearby Aseng Field and the combined cost savings will generate economical
value for PA Resources and the other partners.
PA Resources AB announces that the Plan of Development for the Alen field has
been approved by the Ministry of Mines, Industry, and Energy of the Republic of
Equatorial Guinea. Formerly known as Belinda, Alen is a liquid-rich gas-
condensate* discovery in the Douala Basin offshore Equatorial Guinea. The
reservoir primarily lies in Block O, where the original discovery was made, and
extends into the northern part of Block I, in which PA Resources holds a 6%
interest.
Subject to Government approval, the Alen Field will be unitised on the basis of
95% in Block O and 5% in Block I, with provision for a future re-determination
of interests after development drilling. The Alen Field will utilise condensate
storage capacity and certain facilities on the Aseng FPSO on a cost-shared
basis, with Alen assuming 33% - 50% of the relevant costs. Additional
significant synergies exist between the fields in respect of shore base,
production support and onshore activities such that the combined cost savings
will generate very substantial economic value to the Block I and Block O
partnerships and to the Republic of Equatorial Guinea.
- We are delighted to be moving forward with the second field development in
Block I. The field will only contribute a very small daily production to PA
Resources, but it creates substantial value for the Aseng partnership and
underlines the benefits to PA Resources of its investments in the early
infrastructure in the Douala Basin, says Bo Askvik, President and CEO, PA
Resources.
Initial development of the Alen Field will include three production wells and
three subsea natural gas injection wells tied to a processing platform. Produced
condensate will be separated and piped to the Aseng floating production,
storage, and offloading vessel (FPSO) on Block I, approximately 15 miles to the
south, where it will be held until sold. Gas produced will be reinjected back
into the reservoir to maintain pressure and maximize liquid recoveries. First
production is estimated to commence by the end of 2013 at a total rate of
37,500 barrels per day gross of which PA Resources share amounts to
approximately 100 barrels per day.
Noble Energy is Technical Operator of the development project. The partners on
Block I include Noble Energy (40 %), Atlas Petroleum International Limited (29
%), Glencore Exploration (EG) Ltd. (25 %) and PA Resources' wholly-owned
subsidiary Osborne Resources Ltd (6 %). The national oil company of Equatorial
Guinea - GEPetrol - has a five percent carried interest in Block I. The partners
on Block O are Noble Energy (55%), Glencore Exploration Ltd (25%) and GEPetrol
(20%).
* Condensate is a mixture of the heavier elements of natural gas, and is fluid
at atmospheric pressure.
Stockholm, 12 January 2011
PA Resources AB (publ)
For additional information, please contact:
Bo Askvik
President and CEO
PA Resources AB
Telephone: +46 70 819 59 18
E-mail:info@paresources.se
PA Resources AB (publ) is an international oil and gas group with the business
strategy to acquire, develop, exploit and divest oil and gas reserves, as well
as explore new findings. The Group operates in Tunisia, United Kingdom, Denmark,
Greenland, Netherlands, Equatorial Guinea and the Republic of Congo
(Brazzaville). PA Resources is one of the largest oil producers in Tunisia and
is also producing oil in the Republic of Congo. The parent company is located in
Stockholm, Sweden.
PA Resources' net sales amounted to SEK 2,113 million during 2009. The company
is listed on the NASDAQ OMX Nordic Exchange in Stockholm, Sweden (segment Mid
Cap) and on the Oslo Stock Exchange in Norway (segment OB Match). For additional
information, please visit www.paresources.se.
The above information has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
published at 15.50 CET on 12 January, 2011.
[HUG#1479251]
