PA to Buy Shell's Interest in Danish Gita and Maja Fields

PA Resources AB has entered into an agreement with Shell Olie- og Gasudvinding Danmark B.V. to acquire a 26.8 percent participating interest in License 9/06 (Gita) and License 9/95 (Maja) on the Danish Continental Shelf. The two licenses are located just south of the Harald field and contain prospectivity in Jurassic reservoirs with good follow-up potential in the Tertiary. An exploration well is scheduled to be drilled with the Ensco 101 jack-up rig during the 4th quarter of 2008 on the Gita prospect in License 9/06. The well will target two plays within the Jurassic with gross estimate prospective resources in the range of 200 to 1,100 million barrels of oil equivalents (boe), of which net P50 unrisked prospective resources of 132 million boe for PA Resources AB).

- This acquisition provides a very important opportunity for PA Resources and is in line with our strategy to grow a quality portfolio in the North Sea. These blocks hold a very large resource potential and the planned exploration well to be drilled later this year will be extremely interesting. Should this well be successful, infrastructure with excess capacity including oil and gas pipelines is very close, offering us a unique opportunity to do a fast track development. We are therefore very pleased to have entered into this deal with Shell Denmark, says Ulrik Jansson, President and CEO of PA Resources AB.

The agreement with Shell Denmark is conditional upon third party approvals.

The operator for both the licenses is Maersk Olie og Gas AS with a participating interest of 31.2 percent in each license. When the acquisition is formally closed, the partners in License 9/06, will be PA Resources AB (26.8 %), the Danish Offshore Fund (20 %), Norwegian Energy Company ASA (Noreco) (12 %) and Shell (10 %). In License 9/96, the partners will be PA Resources AB (26.8 %), DONG (20 %), Norwegian Energy Company ASA (Noreco) (12 %) and Shell (10%).

PA Resources already has interest in two exploration licences in Denmark. The Group is operator with 64 percent interest in both Block 11/06 and Block 12/06 – two high potential licenses which have now entered into their drilling phase. A drilling rig is being contracted and drillings of two wells is planned for during 2009, with one well on each of the blocks.