BHP's Appraisal Well at Zamzama Field Finds Gas

BHP Billiton revealed the results from its Zamzama East well situated on the company's Zamzama gas field in Sindh Province, southern Pakistan. Drilled to a depth of 4,051 meters the well encountered a 36.3 meter net gas bearing Pab sandstone within a 61.3 meter gross gas column. The well flowed at a gas rate of 40 million standard cubic feet per day (MMscfd) of gas on a 48/64-inch choke.

This is the second successful appraisal well BHP Billiton has drilled on the field since Phase I of the development was completed in June 2003. The first, Zamzama North, confirmed a 127 meter gross gas column with 79 metres of net pay. The well flowed at a gas rate of 41 MMscfd on a 48/64-inch choke.

Francis Egan, Vice President of Operations and Development for BHP Billiton Petroleum in Pakistan said today, "This is a further encouraging result for the Zamzama Joint Venture. The data we have from these two successful appraisal wells enhances our understanding of the reservoir and this will be incorporated into planning for the further development of the Zamzama Field. We are currently progressing new contractual arrangements to sell this additional gas into the Pakistan market."

BHP Billiton commissioned the Zamzama Phase I Development and made the first contractual commercial gas deliveries from the new facilities to its customers on 17 July 2003. The Prime Minister of Pakistan, Mir Zafarllah Khan Jamali, inaugurated the Phase 1 development on September 4, 2003. Phase 1 is currently supplying some 300 MMscfd of gas to the Pakistan market.

BHP Petroleum (Pakistan) Pty Ltd has a 38.50 percent interest in the Zamzama field and is operator, with partners Government Holdings (Private) Ltd 25.00 percent, PKP Exploration Ltd (a jointly owned company between Kufpec and Premier Oil) 18.75 percent, and Eni Pakistan (M) Ltd 17.75 percent.

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