Paladin Resources PLC
09 May 2005
Paladin Resources plc
DTI Approval for Wood Field Development
Paladin Resources plc announces that its wholly owned subsidiary, Paladin Expro
Limited ("Paladin"), and its joint-venture partner Energy North Sea Ltd., a
subsidiary of Marubeni Corporation, have today received DTI approval for the
development of the Wood oil field, which is located close to the Montrose,
Arbroath and Arkwright ("MonArb") field complex, at an anticipated cost of
approximately £80 million.
The Wood Field was discovered by Amoco U.K. in 1996 by well 22/18-6, which
penetrated 146 ft of oil bearing Jurassic Fulmar Sandstone. The field will be
produced by a single horizontal development well tied back to the existing
Montrose production platform 9.5 km away. A compression module will also be
installed on the Montrose platform to compress and export associated gas from
the Wood Field. Associated gas from the MonArb complex, which is currently being
flared, will in future also be compressed and exported using the new facilities.
Oil from Wood will be transported to shore via the Forties Pipeline System,
whilst gas from Wood and the MonArb complex will be exported via the CATS gas
pipeline system. Production will start in late 2006, peaking at over 5,000 bopd
of oil and 21 MMscfd of export gas.
Joint-venture partner interests in the Wood Field development and in the
Montrose, Arbroath and Arkwright Fields are Paladin Expro Limited (operator)
58.97 per cent and Energy North Sea Ltd. 41.03 per cent.
Colin Reid, Paladin's Aberdeen-based UK General Manager, commented:
"The Wood Field development is further proof of the growth potential which lies
around mature North Sea infrastructure and of how focused innovative companies
can exploit previously discounted opportunities. In this case, a dual benefit
has been realised through the development of the Wood oil and gas reserves and
the sale of gas which would otherwise have been flared."
9 May 2005
Paladin Resources plc
Roy A. Franklin, Chief Executive Tel: 020 7024 4500
Cuth McDowell, Finance Director
Colin Reid, UK General Manager Tel: 01224 615600
Jim Joseph Tel : 020 7457 2020
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