PA RESOURCES: TEST OF WELL IN EQUATORIAL GUINEA CONFIRMS GOOD FLOW RATES
The appraisal well I-5 on the Benita structure in Block I in Equatorial Guinea has been tested and the test results yielded encouraging oil flow rates. The oil and gas group PA Resources has a six percent working interest in the license.
The operator Noble Energy has today announced flow test results from the Benita oil appraisal well I-5 in Block I offshore Equatorial Guinea. The drilling of the I-5 well was completed in the middle of May this year and the well encountered approximately 13 meters of net oil pay and defined the water-oil contact. Test results from this high-quality Miocene reservoir yielded flow rates of 6,250 barrels of oil per day and 5.4 million cubic feet per day of natural gas (corresponding to 930 barrels of oil equivalents). The production rates were limited by the test equipment. Based on test information gathered, a development well is anticipated to produce approximately 10,000 barrels of oil per day. The operator Noble Energy expects thus that Benita could produce at a rate of 50,000 barrels of oil per day from just five wells. Samples taken also indicate oil with a crude oil gravity of 30 degrees.
- This result is very positive for the development of the Benita structure. The test confirms that important flow rates can be achieved. PA Resources will encourage a fast-track development of Benita. Hopefully a development plan can be submitted to the authorities by the end of this year, and in that case first oil can be achieved in 2012, says Ulrik Jansson, President and CEO of PA Resources.
The Sedco 700 deepwater rig is now preparing to drill the Diega prospect, an additional Miocene target approximately nine kilometres north of Benita on Block I. Diega, located in 660 meters of water with a proposed well depth of 3,200 meters, has a gross resource potential of between 20 and 80 million barrels of oil equivalent according to the operator.
2BPA Resources has a 6 percent working interest in Block I, through its fully owned subsidiary Osborne Resources. Operator is Noble Energy (40 percent) and the other partners are Atlas Petroleum International (29 percent) and Glencore Exploration (25 percent). GEPetrol (the national oil company of the Republic of Equatorial Guinea) will have a five percent carried interest once commerciality has been determined.
Stockholm, June 5, 2008
PA Resources AB (publ)
For more information, please contact:
Ulrik Jansson
President and CEO, PA Resources AB
Telephone: +46 70 751 41 84
E-mail: info@paresources.se
or
Trond Bjerkan
Executive Vice President, PA Resources AB
Telephone: +47 21 097110
E-mail: info@paresources.no
PA Resources AB (publ) is a fast growing oil and gas group with the business strategy to acquire, develop and exploit oil and gas reserves, as well as explore new findings. The Group operates in Tunisia, Norway, Greenland, Great Britain, Denmark, Netherlands, Equatorial Guinea and the Republic of Congo (Brazzaville). PA Resources is today one of the largest oil producers in Tunisia. The parent company is located in Stockholm, Sweden.
PA Resources AB's net sales amounted to approximately SEK 2,794 Million during 2007. The company is primary listed on the Oslo Stock Exchange in Norway (segment OB Match) and secondary listed on the OMX Nordic Exchange in Stockholm, Sweden (segment MidCap). For additional information, please visit www.paresources.se.
