Paladin Resources PLC
15 July 2004
Paladin Resources plc
("Paladin" or "the Company")
Third Tunisian Oil Discovery
Paladin announces the discovery and successful testing of oil in Dalia 1, the
latest exploration well in the Adam Concession in southern Tunisia.
The well, operated by ENI Tunisia B.V. ("ENI"), was spudded on 20th May 2004 and
encountered several oil and gas bearing zones distributed throughout the Acacus
A and Tannezuft sandstones at a depth of approximately 3400 metres.
During initial testing of selected oil-bearing intervals across 11 metres of
perforations, the well produced at a rate of approximately 3,600 bpd of 44
degrees API oil on a 48/64" choke and at a flowing wellhead pressure of
The well has been completed and suspended as a production well pending approval
of a field development plan and hook up to existing process and export
facilities some 13 km distant. Paladin anticipates that field production will
commence within the next few weeks. The rig will move shortly to the adjacent
Hawa Field to drill a second production well.
If the Tunisian state oil company, ETAP, confirms their intent to participate,
Paladin will have a 7% interest in the Dalia Field. Paladin's partners' will be
ETAP (30%), ENI Tunisia B.V (17.5%), ENI Tunisia BEK (17.5%) and Pioneer Natural
Resources Company (28%).
Roy Franklin, Chief Executive of Paladin, commented:
"This is our third oil and gas discovery in succession in Tunisia, which, with
rapid tieback to existing process facilities, should be contributing to the
Company's operating cash flow in a matter of weeks. In addition, negotiations
are ongoing to allow the commercial production of gas from the Adam Concession
to commence later in 2004."
15 July 2004
Paladin Resources plc Tel. 020 7024 4500
Cuth McDowell, Finance Director
College Hill Tel. 020 7457 2020
This information is provided by RNS
The company news service from the London Stock Exchange