Shell and PanOcean Make Discovery with Awokou-1 in Gabon

Shell Gabon and its co-venturer Pan-Ocean Energy have made a light oil discovery in the exploration well AWOKOU-1 on the Koula prospect in the Awoun Permit located eight kilometers to the north of the Total/Shell producing Avocette field and five kilometers to the northwest of the PanOcean's producing Obangue field onshore Gabon, West Africa. Shell, the operator, and PanOcean each have a 50% interest in the well prior to the government 20% back-in.

The AWOKOU-1 exploration well was successfully drilled and logged with the Simpler 101 rig to a total depth of 1,926 meters. Based on the data collected thus far, the AWOKOU-1 well has come in close to prognosis and found oil in thick Gamba sandstone. AWOKOU-1 is the first well drilled as part of a two-well exploration campaign in the permit and is currently being suspended at the 9 5/8" casing. The second exploration well (AWODAM-1) will be drilled in October 2004, some three kilometers to the southwest of the AWOKOU-1 discovery.

Once the AWOKOU-1 well is suspended, the rig is scheduled to move to the Maghena property (PanOcean 100%) where it will spud PanOcean's second well on the Tsiengui prospect, TST-2. The current five-well onshore drilling program consists of (i) the AWOKOU-1 exploration well (50% PanOcean); (ii) the TST-2 well (100% PanOcean); (iii) the AWODAM-1 exploration well (50% PanOcean); and two infill development wells on the Obangue Field, (iv) NZOB-8h (92.5% PanOcean) and (v) NZOB-9h (92.5% PanOcean). Depending upon the appraisal strategy agreed between Shell and PanOcean, it may be decided that an appraisal of AWOKOU-1 could be drilled as the sixth well in the program sequence around the end of the year.