PA Resources Announces Underperformance at Didon Field in Tunisia

01-09-2008

PA Resources said it produced an average of 14,600 barrels of oil per day during November, below market expectations after suffering from lower production at one of its key fields in Tunisia, but that it was still maintaining its 2008 guidance.

The average production regularity on the Didon field in Tunisia was 98 percent for the period Q4 2007.

The average production for December 2007 was 12,968 barrels per day. As previously reported, the reduced production was due to the underperformance of one well at the Didon field which is currently being worked at. Additionally, the subsea well, which was connected in November, has been shut-in due to repair of the control line. This work is ongoing.

PA said the problem will now have to be repaired, and as a result 'production during the first quarter of 2008 will suffer from the underperformance'.

Despite this, the firm said it is maintaining its guidance on average production for 2008.

Preparations for the 2008 drilling program are well advanced and the Ensco 85 rig has arrived in Tunisia. After leg extension work, the jack-up rig will by the end of January start drilling a new production well on the Didon field. This may be followed by a possible drilling of another production well in the western parts of the field, which is currently being evaluated. Thereafter, an exploration programme will start, including possible tieback opportunities to Didon.