Danish Licences extended
The Danish Energy Agency has extended by two years Licence 12/06 operated by PA Resources with a 64% working interest and Licence 9/06 (‘Gita’) in which PA Resources holds a 26.8% working interest. PA Resources has elected to withdraw from Licence 9/95 (‘Maja’).
The PA Resources-operated Licence 12/06 (64%) which contains the Broder Tuck gas/condensate discovery and Lille John oil discovery resulting from the successful 2011 drilling campaign has now been extended until May 2014. Planning has commenced for a well appraising the Lille John shallow oil discovery, commencing with the award of a drilling management contract.
The Maersk-operated Licences 9/06 (‘Gita’) and 9/95 (‘Maja’) (PA Resources 26.8%), have also been extended by two years. In 2009 the Gita 1X-well encountered indications of hydrocarbons in the Middle Jurassic HPHT (high pressure high temperature) secondary target but with low permeability. Subsequent detailed studies have not been able to reduce the risk attached to the produceability of these hydrocarbons. PA Resources will maintain its 26.8% interest in the Gita Licence, where there is no well commitment but a decision regarding drilling must be made by October 2013. Additional subsurface studies will be carried out to further evaluate the prospectivity at Upper Jurassic and shallower Cretaceous and Tertiary levels prior to such a decision.
The 9/95 Licence is being extended with a commitment to drill a deep HPHT well targeting a complex Upper Jurassic gas exploration prospect which PA Resources regards as relatively high risk. As a result, subject to the Danish Energy Agency’s approval, PA Resources has elected to withdraw from this Licence. The withdrawal will result in a write-down of approximately SEK 90 million recorded in the results for the second quarter 2012.
- High cost, high risk gas exploration is not part of PA Resource’s core strategy. Our primary focus in Denmark is to progress the Lille John oil discovery and Broder Tuck gas/condensate discovery towards development. We see greater shareholder value in our focus on these discoveries and relatively shallow exploration in Licence 12/06 and our adjacent German acreage, says Bo Askvik, President and CEO of PA Resources.
Stockholm, 25 June, 2012
PA Resources AB (publ)
For additional information, please contact:
Bo Askvik, President and CEO, PA Resources AB
+46 708 19 59 18, ir@paresources.se
PA Resources AB is an international oil and gas group which conducts exploration, development and production of oil and gas assets. The Group operates in Tunisia, Republic of Congo (Brazzaville), Equatorial Guinea, United Kingdom, Denmark, Greenland, Netherlands and Germany. PA Resources is producing oil in West Africa and North Africa. The parent company is located in Stockholm, Sweden. PA Resources’ net sales amounted to SEK 2,154 million during 2011. The company is listed on the NASDAQ OMX in Stockholm, Sweden (segment Mid Cap). 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 08.30 CET on 25 June, 2012.
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