Paladin Resources PLC
5 November 2001
Paladin Resources plc
Re: Statement by BG International
The Board of Paladin Resources plc notes the following announcement made today
by BG International in relation to the Blake oil field, in which Paladin holds
a 2.4 per cent. interest:
'BG Group - with partners Talisman Energy and Paladin Resources - has
successfully tested two zones in the Blake Flank structure in the North Sea,
with an appraisal well which spudded on September 17.
Tests at the first zone, over the Coracle Formation, flowed at a rate of 2450
barrels of oil per day on a 56/64th inch choke. The second test was designed
to determine the productivity of the overlying Captain sands, and it flowed
at 3000 barrels of oil per day on a 64/64th inch choke.
A sidetrack to the well 13/24a-8 is now being drilled to confirm volumes
within the structure. If this proves successful, BG and partners intend to
fast-track the Blake Flank development.
The Blake Flank structure lies directly to the north-east of the Blake Channel
structure, which was brought on stream by the Blake field owners in June 2001.
BG Group is the field operator and holds a 44 per cent interest, with Talisman
Energy holding 53.6 per cent and Paladin Resources 2.4. per cent.
The Blake field - located 64 miles from Aberdeen in the Outer Moray Firth -
started production on June 27 2001, just 18 months after project sanction. It
has estimated gross field reserves of around 70 million barrels of oil, and
has reached a peak flow of 60,000 barrels of oil per day.'
5 November 2001
Paladin Resources plc Tel: 020 7534 2900
Roy A. Franklin, Chief Executive
College Hill Tel: 020 7457 2020