Aseng oil field project in the Republic of Congo sanctioned

The Plan of Development for the Aseng oil field in Block I offshore Equatorial Guinea has been sanctioned by the operator, PA Resources and other partners as well as the Ministry of Mines, Industry and Energy of the Republic of Equatorial Guinea. Production is estimated to commence in mid 2012. PA Resources holds a six percent working interest in the block.

Formerly known as Benita, Aseng was originally discovered in 2007 as a gas-condensate field in Block I offshore Equatorial Guinea. Subsequently, two appraisal wells were drilled in the structure with the first well identifying the oil resources and the second well determining reservoir limits. A Plan of Development was submitted to the Ministry of Mines, Industry and Energy of the Republic of Equatorial Guinea in late 2008 and the plan has now been sanctioned.

- We look forward to developing the Aseng field together with the operator Noble Energy, the other partners and the authorities of Equatorial Guinea. The field is located in a block where several discoveries of oil, gas and condensate have been made during the last years. This stand-alone project will provide critical infrastructure for the various other discoveries in the area, says Ulrik Jansson, President and CEO at PA Resources.

Noble Energy will serve as technical operator of the development. Initial development of the field will include five subsea wells flowing to a floating production, storage, and offloading vessel (FPSO). The oil will be stored on the vessel until sold, while the natural gas and water will be re-injected back into the reservoir to maintain pressure and maximize oil recoveries. The FPSO, to be located in approximately 3,100 feet of water, will be designed with capacity to handle 120,000 barrels of liquids per day, including 80,000 barrels of oil per day. In addition, the vessel will be capable of reinjecting 170 million cubic feet per day of natural gas. Storage on the vessel will be approximately 1.5 million barrels of oil and condensate.

Total cost of development, excluding the cost of the FPSO, which will be leased, is estimated at USD 1.3 billion (USD 80 million net for PA Resources). The majority of this capital is to be invested in 2010 and 2011. First production from the field is estimated to commence by mid-year 2012 at 50,000 barrels of oil per day gross (3,000 barrels per day net to PA Resources).

Over the life of the project, the operator expects to recover gross hydrocarbon liquids of approximately 100 to 120 million barrels. In addition, there is an estimated 450 to 550 billion cubic feet of gas resources at Aseng that will be produced as part of an integrated gas project in the region once the pressure maintenance phase is completed.

Extensive engineering and design work has been done over the past year, the project team is in place, and all long lead items have been secured. The tender process for the FPSO and subsea equipment has been completed and the operator is preparing to award most of the major contracts.

The operator has secured two rigs to support the development work at Aseng. The rig Atwood Hunter is estimated to arrive in Equatorial Guinea in mid-2010. A letter of intent has been signed on a second rig, which is expected to be delivered in the first quarter 2010.

PA Resources has six percent working interest in Block I and the Aseng field. The Technical Operator Noble Energy has a 40 percent participating interest, the Administrative Operator Atlas Petroleum International Limited 29 percent and Glencore Exploration Ltd. 25 percent. GEPetrol (the national oil company of the Republic of Equatorial Guinea) has a five percent carried interest.

PA Resources AB (publ) is an international oil and gas group with the business strategy to acquire, develop, exploit and divest oil and gas reserves, as well as explore new findings. The Group operates in Tunisia, United Kingdom, Denmark, Greenland, Netherlands, Equatorial Guinea and the Republic of Congo (Brazzaville). PA Resources is today one of the largest oil producers in Tunisia. The parent company is located in Stockholm, Sweden.
PA Resources’ net sales amounted to SEK 2,420 Million during 2008. The company is primary listed on the Oslo Stock Exchange in Norway (segment OB Match) and secondary listed on the NASDAQ OMX Nordic Exchange in Stockholm, Sweden (segment Mid Cap). For additional information, please visit www.paresources.se.