Edison Finds Gas in Reggane Nord Permit in Algeria

Reggane Nord Permit
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Edison, in joint venture with Repsol YPF, RWE Dea and Sonatrach completed drilling of the first two wells in the Reggane Nord permit comprising of the blocks 351c-352c, situated within the Reggane Basin, Saharan Platform, Algeria. The results were very positive: in both cases, gas was encountered, with a maximum flow rate, respectively, of more than 630.000 m3/d and 100.000 m3/d.

"This encounters are very important, since they confirm potentiality of this exploration area", Umberto Quadrino, Chief Executive Officer of Edison, commented. "Thanks also to this field, we aim at strengthening our upstream activities, with the goal of diversifying supplies while increasing their safety".

The minimum contractual commitments of the first exploration phase (3 years) have been covered in excess with the acquisition of 646 km of 2D seismic and 942 km2 of 3D seismic, and the drilling of two wells. The first of them RG-5 has been drilled in the main structure of Reggane and encountered gas in two levels of the Lower Devonian with a maximum flow rate of more than 630.000 m3/d, choke 32"/64", WHP 4238 psi. The second well SLI-1, drilled in the Sali structure, discovered gas in the Lower Devonian with a maximum flow rate of 100.000 m3/d, choke 64"/64", WHP 122 psi. The area of these blocks covers about 12.012 km2. Edison and its foreign partners won these blocks in the competition of the III Bidding Round for Exploration Blocks tendered by the Ministry of Energy and Mines in 2002.

Currently, a third well is in progress along with an additional seismic program of 550 km of 2D. An ambitious exploration and delineation work program for 2006 and 2007 is in planning, including at least 8 wells more.

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