Unsuccessful well test at Didon North
PA Resources has encountered complications during flow testing of the new production well on the satellite field Didon North in Tunisia. It has been decided to suspend the well.
Despite good oil saturation in the reservoir, only small amounts of hydrocarbons have been recovered from the Didon North well in recent flow tests. According to preliminary analysis, the well has encountered minor faults, not visible in the seismic data, preventing oil from flowing in the well. Several attempts to flow the well have been made using different techniques, why additional measures without further analysis are not justified at this stage.
Thus, the Board of Director’s of PA Resources has decided to suspend the well and release the drilling rig. A full analysis will be conducted to evaluate all options for future exploitation of the oil in the reservoir that was discovered by an exploration well at the field in 2008. The investment will be impaired in the fourth quarter 2011.
– We are very surprised by this unexpected outcome given our experience from similar reservoirs at the Didon field. We will need time to assess what has gone wrong in testing and possibly the completion of the well. At the same time, we will look into other possibilities to increase our production. Near term we look forward to first oil at the Aseng field in Equatorial Guinea in the fourth quarter, says Bo Askvik, President and CEO of PA Resources AB.
Stockholm, 26 October, 2011
PA Resources AB (publ)
For further information, please contact:
Bo Askvik
President and CEO, PA Resources AB
Mobile: +46 (0)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, Republic of Congo (Brazzaville), Equatorial Guinea, United Kingdom, Denmark, Greenland, Netherlands and Germany. 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 2,227 million during 2010. The company is listed on the NASDAQ OMX 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 07.00 CET on 26 October 2011.
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