ENI Begins Production from Hawa-1 in Tunisia

Production from the Hawa-1 exploration well in the Adam Concession in southern Tunisia has commenced.

The well, operated by ENI Tunisia B.V., was spudded on September 18, 2003 and encountered an aggregate 46 meters of net oil pay and 9 meters of net gas pay in Paleozoic formations at a depth of approximately 3,300 meters. These zones are equivalent to productive zones in the Acacus Formation in the nearby producing Adam Field, discovered in 2002.

During testing, the oil-bearing intervals produced at a combined rate of 6,200 barrels per day of 41degrees API oil, while the gas-bearing zones produced at a rate of 14.3 million cubic feet per day, and 1000 barrels per day of condensate.

The well has now been put on production to the existing process and export facilities of Oued Zar Field, 13km distant, operated by Eni Tunisia B.V., and is currently producing at a rate in excess of 5,000 bbls per day.

Participants in the Adam Concession are as follows: ENI Tunisia B.V. 17.5%; ENI Tunisia BEK 17.5%; ETAP, the Tunisian state company 30%; Pioneer Natural Resources Company 28% and Paladin Expro Limited 7%.

Roy Franklin, Chief Executive of Paladin, commented: 'This is an outstanding oil flow rate for the Acacus reservoir in southern Tunisia and, as a result of extremely rapid pipeline tie-in, gross production from the Concession has already reached a level of some 9,000 bbls per day. We anticipate further drilling later in 2004, and with the infrastructure already in place any further successful wells can be similarly fast-tracked to production. Ongoing discussions with STEG, the state electricity and gas transmission company, will also hopefully lead to gas sales from the Concession in the near term.'