PA Resources Sidetracks Elyssa-3

PA Resources has moved the Ocean Spur to the Elyssa-field in Tunisia and a sidetrack to the Elyssa-3 well has been spudded.

PA Resources has now completed the drilling campaign on the Didon-field in Tunisia and moved the Ocean Spur drilling rig from Didon to the Elyssa-field. The planned sidetrack of the Elyssa-3 well has been spudded.

The Elyssa-3 well was suspended temporary in June 2006, in order to reallocate the rig and drill the production wells at the Didon-field. The Elyssa-3 sidetrack will be drilled as a deviated well reusing the top part of Elyssa-3. The well will target the previously un-drilled southern flank of the field to further appraise the multiple hydrocarbon bearing intervals discovered in Elyssa- 3 and to carry out production testing of the main reservoir section.

Drilling and potential well testing of the Elyssa-3 sidetrack is estimated to take approximately two months. The original contract for the Ocean Spur rig expires in March, 2007. Diamond Offshore has, however, agreed to a contract extension to include the drilling and testing of Elyssa-3 sidetrack.

PA Resources is operator and has a working interest of 100% in the Elyssa field. The Tunisian State oil company ETAP does, however, has a right to acquire a maximum of 55% share of the field once in production, and will then carry the back-dated cost of their share of developing the field.

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