Paladin Resources PLC
05 September 2002
Paladin Resources plc
("Paladin", "the Company" or "the Group")
Tunisian Oil Discovery
Paladin announces the discovery and successful testing of oil and gas in its
Adam-1 exploration well, in the Borj el Khadra permit area in southern Tunisia.
The well, operated by AGIP Tunisia B.V. ("Agip"), was spudded on 7 July 2002 on
the Adam prospect and encountered oil and gas shows over a gross interval of 313
metres in the Acacus 'A' and 'B' Sands at a depth of ca. 3,000 metres. Four
potentially productive zones with net pay totalling ca. 30 metres were
identified. Two of these zones are analogous with productive zones in nearby
oilfields operated by Agip; these zones will be tested through tubing in the
near future prior to being brought into production when a field development plan
has been approved.
Drill stem tests were carried out on the other two zones to assess their
potential productivity. The first test over an interval of 7m in the Acacus 'A'
Sand produced at a rate of 250 bopd of 42 degree API oil with a gas-to-oil ratio
of ca. 1,000 scf/bbl. The second test also over an interval of 7m in the Acacus
B Sand produced at a stabilised flow rate of ca. 3,500 bopd of 41 degree API oil
with a gas-to-oil ratio of ca. 400 scf/bbl.
The well is now being completed as a production well and will be suspended,
pending approval of a field development plan and hook up to existing process and
export facilities some 12 km. distant. Paladin anticipates that this will occur
in early 2003.
Paladin has a 10% interest in the Borj el Khadra permit. Paladin's partners are
Agip (50%) and Pioneer Natural Resources (40%). The Tunisian state oil
company, ETAP, is carried through the exploration phase of activity, and has a
right to back in for up to a 50% interest in any development, by reimbursing its
share of past expenditure from production revenues.
Roy Franklin, Chief Executive of Paladin, commented:
"This is the first significant success for the exploration element of our
corporate strategy. The discovery is attractive in its own right and enhances
the prospectivity of other identified leads in the permit area."
5 September 2002
Paladin Resources plc Tel: 020 7534 2900
Roy A. Franklin, Chief Executive
College Hill Tel: 020 7457 2020
Paladin Resources plc is a UK listed oil exploration and production company,
currently producing approximately 34,000 barrels of oil equivalent a day from
producing assets in the UK, Norway, Denmark, Indonesia and the United States.
Paladin holds exploration acreage in its producing areas and also in Romania and
This information is provided by RNS
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