Approved plan of development for the Alen Field
A plan of development for the Alen Field, offshore Equatorial Guinea has been approved by the authorities in the country. The Field will use storage capacity on the nearby Aseng Field and the combined cost savings will generate economical value for PA Resources and the other partners.
PA Resources AB announces that the Plan of Development for the Alen field has been approved by the Ministry of Mines, Industry, and Energy of the Republic of Equatorial Guinea. Formerly known as Belinda, Alen is a liquid-rich gas-condensate* discovery in the Douala Basin offshore Equatorial Guinea. The reservoir primarily lies in Block O, where the original discovery was made, and extends into the northern part of Block I, in which PA Resources holds a 6% interest.
Subject to Government approval, the Alen Field will be unitised on the basis of 95% in Block O and 5% in Block I, with provision for a future re-determination of interests after development drilling. The Alen Field will utilise condensate storage capacity and certain facilities on the Aseng FPSO on a cost-shared basis, with Alen assuming 33% - 50% of the relevant costs. Additional significant synergies exist between the fields in respect of shore base, production support and onshore activities such that the combined cost savings will generate very substantial economic value to the Block I and Block O partnerships and to the Republic of Equatorial Guinea.
- We are delighted to be moving forward with the second field development in Block I. The field will only contribute a very small daily production to PA Resources, but it creates substantial value for the Aseng partnership and underlines the benefits to PA Resources of its investments in the early infrastructure in the Douala Basin, says Bo Askvik, President and CEO, PA Resources.
Initial development of the Alen Field will include three production wells and three subsea natural gas injection wells tied to a processing platform. Produced condensate will be separated and piped to the Aseng floating production, storage, and offloading vessel (FPSO) on Block I, approximately 15 miles to the south, where it will be held until sold. Gas produced will be reinjected back into the reservoir to maintain pressure and maximize liquid recoveries. First production is estimated to commence by the end of 2013 at a total rate of 37,500 barrels per day gross of which PA Resources share amounts to approximately 100 barrels per day.
Noble Energy is Technical Operator of the development project. The partners on Block I include Noble Energy (40 %), Atlas Petroleum International Limited (29 %), Glencore Exploration (EG) Ltd. (25 %) and PA Resources' wholly-owned subsidiary Osborne Resources Ltd (6 %). The national oil company of Equatorial Guinea - GEPetrol - has a five percent carried interest in Block I. The partners on Block O are Noble Energy (55%), Glencore Exploration Ltd (25%) and GEPetrol (20%).
* Condensate is a mixture of the heavier elements of natural gas, and is fluid at atmospheric pressure.
Stockholm, 12 January 2011
PA Resources AB (publ)
For additional information, please contact:
Bo Askvik
President and CEO
PA Resources AB
Telephone: +46 70 819 59 18
E-mail: info@paresources.se
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 one of the largest oil producers in Tunisia and is also producing oil in the Republic of Congo. The parent company is located in Stockholm, Sweden.
PA Resources' net sales amounted to SEK 2,113 million during 2009. The company is listed on the NASDAQ OMX Nordic Exchange in Stockholm, Sweden (segment Mid Cap) and on the Oslo Stock Exchange in Norway (segment OB Match). For additional information, please visit www.paresources.se.
The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 15.50 CET on 12 January, 2011.