Shell & PanOcean Make Second Discovery on Awon Permit

Shell Gabon S.A. and its co-venturer Pan-Ocean Energy have made a second light oil discovery on the Awoun Permit, onshore Gabon, West Africa. The exploration well AWODAM-1 was drilled on the flank of the Damier prospect some four kilometers southwest of the Koula discovery announced in September 2004. The two discoveries are 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.

The AWODAM-1 exploration well was successfully drilled and logged with the Simpler 101 rig to a total depth of 2,079 meters. An oil column of at least 25 meters has been identified in the Gamba reservoir section based on petrophysical logs and wireline formation tester pressure analysis. Oil samples were taken from two locations in the Gamba reservoir. No gas was observed on the logs or on the MDT runs.

The well is currently being suspended at the 9 5/8" casing. The partnership plans to take advantage of the Simpler 101 rig being in the area and move immediately to start appraisal drilling on the nearby Koula discovery, AWOKOU-1. PanOcean's planned development drilling program on its Obangue property is expected to commence immediately after the Koula appraisal drilling.

Shell Gabon, the operator, and PanOcean each have a 50% interest in the well prior to the government 20% back-in. AWODAM-1 is the second of a two well 2004 exploration drilling campaign on the Awoun Permit.