Shell to Consider Further Appraisal Drilling at Awoun Permit

Shell Gabon and its co-venturer Pan-Ocean Energy announced, September 7th, a light oil discovery in the exploration well AWOKOU-1. Further data analysis indicates a 29-meter oil column in the Gamba sandstone with no gas cap in the drilled formation. Shell Gabon S.A. and PanOcean, equal partners in the Koula discovery on the Awoun concession, feel now encouraged to consider further appraisal and development activities.

The well is located on the Koula prospect in the Awoun Permit situated eight kilometres 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.