Paladin Resources PLC
11 November 2002
PALADIN RESOURCES PLC ("Paladin")
BLAKE FLANK OIL DEVELOPMENT RECEIVES DTI GO-AHEAD
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 and its partners Talisman Energy and Paladin Resources today welcomed
the DTI's approval of the £60 million Blake Flank development in the UK North
Sea. BG is the operator and holds a 44% interest, with Talisman holding 53.6%
and Paladin 2.4%.
First oil production from Blake Flank - which is an extension of the original
BG-operated Blake Channel field in the same production licence - is scheduled
for Q3, 2003. Due to the increased oil production rate of the combined
development, the economic life of the Blake field should be extended by an
estimated two years. The facilities will comprise two production wells and a
single water injector tied into the existing Blake Production Manifold.
Speaking today, BG Group Executive Vice President for the UK Jon Wormley said:
"Blake Flank has taken only one year to progress from the final appraisal well
to project sanction, and is a prime example of just-in-time development at its
best. In using existing infrastructure to extend the life of the original field,
it is also a testament to best contemporary working practice in the North Sea."
Energy Minister Brian Wilson said:
"It is encouraging to see so many North Sea operators looking afresh at their
assets, and finding new and economic ways to exploit the UK Continental Shelf.
With reserves at over 20 million barrels over ten years, the Blake Flank
development will make a welcome addition to existing UK production."
The Blake Flank structure lies 64 miles from Aberdeen in the Outer Moray Firth,
directly to the north east of, and immediately adjacent to, the Blake Channel
structure, which was brought on stream by the field owners in June 2001. An
appraisal well on Blake Flank was spudded on 17 September 2001, and this was
followed by the testing of two zones and a sidetracking programme.
The subsea controls contract has been awarded to Kvaerner, and that for subsea
Christmas trees to Cameron Cooper. Tenders for the drilling unit and Subsea EPIC
contract (Engineering, Procurement, Installation and Construction) are currently
being evaluated, and award details are expected to be announced shortly."
Roy Franklin, Chief Executive, Paladin Resources PLC, commented:
"DTI approval of the Blake Flank development is most welcome. This is good news
for Paladin, not only as a partner in the Blake Field, but also as a partner in
the nearby Ross Field, given the additional tariff income that we will receive
as a result of this development."
Notes to Editors
The original Blake oil field - known as the Blake "Channel" - started production
on 27 June 2001, just 18 months after project sanction. It has estimated gross
field reserves of around 70 million barrels of oil, and produced an average of
40,000 barrels of oil per day during 2001.
The field is produced through facilities on the nearby Ross Field in which
Paladin holds a 14.49 per cent interest. As a result of the commercial
agreements between the Blake and Ross Field partners, Paladin, as a Ross
partner, receives Blake tariff income which will increase as a result of the
Blake Flank development.
11 November 2002
Paladin Resources plc Tel: 020 7534 2900
Roy A. Franklin, Chief Executive
College Hill Tel: 020 7457 2020
James Henderson/Archie Berens
This information is provided by RNS
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