Production- and Drilling Report, Q4, 2010: Lower production than expected largely offset by improved fiscal terms

PA Resources' production increased in the fourth quarter, but was lower than
expected at the end of 2010, mainly related to the Azurite Field in the Republic
of Congo, but nearing final conclusion on improved fiscal terms for the Azurite
Field, will offset the lower production performance to provide PA Resources with
a higher net share of field revenues.

Working Interest Production of crude oil*

* Total oil production, Q4:                                        1,112,900
barrels

* Average oil production per day, Q4:
12,100 barrels/day

* Accumulated oil production Full year
2010:                                  3,915,800 barrels

* Oil sales (excl. royalty), Q4:                                        681,300
barrels

* Average sales price, Q4:                                        82 USD per
barrel

Production and sales

*  PA Resources' average production increased to 12,100 barrels per day in the
fourth quarter 2010 compared to 10,500 barrels per day in the third quarter. The
Azurite Field in the Republic of Congo produced 8,050 barrels per day and the
six Tunisian oil fields 4,050 barrels per day.

*  The average production amounted to approximately 12,000 barrels per day at
the end of 2010. This is lower than expected and means that PA Resources did not
reach its production forecast of 15,000 - 20,000 barrels per day by the end of
2010.

Improved fiscal terms for Azurite and MPS licence in Republic of Congo

* An agreement on improved fiscal terms for the production sharing contract
which covers Mer Profond Sud (MPS) and the Azurite Field has been reached with
the authorities in the Republic of Congo. The new agreement means that both the
Azurite Field and MPS licence will obtain improved fiscal terms, which gives the
license partners a larger net entitlement share of field revenues. The agreement
has been formally approved by the Council of Ministers and will be submitted for
Parliamentary approval. Net entitlement production refers to barrels of oil
attributable to PA Resources under the terms of the production sharing contract
and which can be equated to 'post tax' barrels.


Development of fields

* Azurite - Production on the Azurite Field in the Republic of Congo is lower
than anticipated in the Plan of Development. All six planned production wells
are now completed. The three production wells that were added during the fourth
quarter have been producing at reduced rates awaiting the completion of planned
water injection wells to provide necessary pressure support to the production.

* Azurite - Remaining work to be undertaken on Azurite is to complete the
drilling and completion of two water injectors and one additional production
well as earlier communicated. The field's third water injector is currently
being drilled and development of the field is estimated to be completed in the
second quarter instead of in the first quarter of 2011. Work by PA Resources and
the operator is ongoing to update the forecasting of future production capacity
of the Azurite Field and this work will be finalised with the benefit of
information from the wells remaining to be drilled. PA Resources' assessment
pending completion of the ongoing drilling and evaluation is that production
will be lower than previously communicated.

 * Didon North - Development planning and procurement is proceeding according to
plan for the development of the Didon North discovery, located five kilometres
northeast of the Didon Field's production platform in Tunisia. First oil is
expected in the second half of 2011.


 *  Aseng - Development drilling and completions on the Aseng Field in Block I
in Equatorial Guinea substantially advanced during fourth quarter 2010 with the
drilling rig Atwood Hunter finishing its planned operations and being released
in December, leaving the Pride South Pacific rig working until late in the first
quarter 2011. Overall progress on upgrade of the FPSO, topsides fabrication and
subsea assembly and testing remains on plan.

 * Alen - The Plan of Development for the Alen Field in Block I in Equatorial
Guinea has been submitted to the Government of Equatorial Guinea and is in the
closing stages of the review process.

Exploration

 *  Cobalt & Turquoise - Three wells have been drilled in the MPS licence in
Republic of Congo in late 2010. The exploration well Cobalt Marine 1 was plugged
and abandoned as a dry hole. The appraisal wells Turquoise Marine 3 and 4 were
unsuccessful at the primary Miocene target. Turquoise Marine 4 was drilled to a
deeper target where non-commercial oil pay was encountered along with
significant reservoir development. During 2011 substantial geoscience evaluation
will be undertaken across the block to re-assess the prospectivity associated
with this deeper reservoir which appears highly encouraging for the remaining
prospectivity of Mer Profond Sud.

 * Jelma - Drilling of two exploration wells are also under way at the Jelma
license onshore Tunisia, where the first well in the prospect Sidi M'barek is
now being drilled.

 * DK 12/06 - Two exploration wells will also be drilled in the Danish license
12/06 in the first half of 2011. This license is located adjacent to the new
German license assigned to PA Resources. For more information, see the press
release dated 3 January 2011.

 * Zarat - On the "7th of November" license, situated north of PA Resources' oil
field Zarat offshore Tunisia, an appraisal well has been drilled by the operator
Sonde Resources. The well spudded on 24 November and has reached total depth,
with testing and evaluation in progress. Sonde anticipates that it will be able
to provide an update of the well results in early Q1 2011. The drilling allows
field unitisation, where the oil reserves are allocated to the two licenses
containing the field, which will form the basis for a revised development plan
for the Zarat Field.

Comment from Bo Askvik, President and CEO at PA Resources:

- It is very disappointing that we did not reach the production levels we have
earlier communicated in our production forecast, although PA Resources'
production increased in the fourth quarter. However, it is with satisfaction
that we note that this will be largely offset by improved fiscal terms in the
Republic of Congo, which will give us a larger net share of revenues at the
Azurite Field. It is of course also a disappointment with the outcome of the
drilling of the Cobalt and Turquoise wells, but we are encouraged by the
potential in the encountered deeper reservoir, which we will evaluate further.

* This is a preliminary report on PA Resources group production and sales of
crude oil during the fourth quarter 2010. Final figures will be reported in the
coming year-end financial report.

Stockholm, 7 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 08.30 CET on 7 January, 2011.


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