Pan-Ocean Energy has received a report that shows an 85%, or 6.7 million barrel, upward revision of its proved oil reserves at its principal producing property Etame Marin, offshore Gabon. With the Etame Field performance having exceeded the Company's earlier expectations, as well as having developed an enhanced understanding of the reservoir from seismic re-interpretation and reservoir simulation, the Reserves Committee of the Board of Directors commissioned McDaniel & Associates Consultants Ltd., independent petroleum engineering consultants, to re-evaluate the Etame Marin Licence. An independent engineering evaluation conducted by McDaniel, effective October 1,
2003 (the "Etame Report"), estimated Proved Etame Marin reserves of 13.3 million barrels (mmbbl) and Proved plus Probable (2P) reserves of 17.6 mmbbl net to the Company's 31.36% working interest share. Earlier this year, McDaniel estimated Etame Marin reserves at 7.8 mmbbl Proved and 14.0 mmbbl Proved plus Probable as at January 1, 2003. As a result of the Etame revision, PanOcean's overall reserve life index for Proved and 2P oil reserves increased to 6.2 years and 8.3 years respectively.
On a lease gross (100%) basis, Etame Marin Proved reserves increased 85% from 25.0 mmbbl to 46.4 mmbbl as at 1 January 2003. Etame Marin Proved plus Probable reserves increased 34% from 44.8 mmbbl to 60.1 mmbbl as at January 1, 2003. The Etame field has produced at total of 3.9 mmbbl (1.2 mmbbl net to PanOcean) from January 1st to September 30, 2003.