After full evaluation of the DEL-10 and DEL-11 series of delineation wells drilled in May, the Company has concluded that the oil reserves are sufficient to justify commercial development of two locations to complement the existing production platform, Platform A.
A second production platform, Platform B, will be installed at the DEL-10 location, approximately 3 km northwest of Platform A, which flowed first oil from the Jasmine field on June 7, 2005. A third production platform, Platform C, will be installed at the DEL-11 location, approximately 3.2 km south of Platform A.
Platforms B and Platform C will be connected via sub-sea pipeline to the Jasmine Venture MV7 floating production, storage and offloading vessel located close to Platform A. Start-up of Platform B and Platform C is slated for first quarter of 2007.
"Successful development drilling on Platform A, coupled with strong production rates achieved in the first month or so of its producing life and the positive results from the DEL-10 and DEL-11 delineation wells gives us confidence that Platforms B and C will be successful. The Jasmine field's overall operating costs will not increase significantly because the existing Jasmine Venture MV7 FPSO has capacity to handle production from all three platforms," said Murray Hesje, PEARL's Chief Operating Officer.
Under the development plan, Platform B will have 12 production wells and eight water injection wells and Platform C will have eight production wells.
PEARL intends to certify reserves at the end of 2005, at which time the reserves associated with Platforms B & C will be added to the Group's existing reserve base.
The decision to expand PEARL's development of the Jasmine field with Platforms B and C is not expected to have any material impact on the Company's financial performance for 2005. PEARL expects to fund the costs associated with the construction and installation of Platforms B and C from Platform A cash flows and available banking facilities.
100% interest in Block B 5/27 is held by PEARL's 70%-owned subsidiary, PEARLOIL (Siam) Limited. The remaining 30% equity interest in PEARL Siam is held by Choice Plus Holdings Limited. PEARL Siam is the operator of Block B 5/27.
Block B 5/27 is located offshore in the Gulf of Thailand and covers an area of approximately 1,931 sq km.
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