First Oil from Brechin

Paladin Resources reports that oil production has successfully commenced from the Brechin Field, at an initial rate in excess of 8,000 bopd.

The Brechin Field, which lies close to the Montrose, Arbroath and Arkwright ('MonArb') field complex, was discovered in May 2004 by Paladin's first UK operated exploration well 22/23a-7, which penetrated 138 ft of oil-bearing Palaeocene Forties Sandstone. The field has been developed by a single horizontal subsea development well tied back to the existing Arkwright Field subsea infrastructure, which lies approximately 3 km to the west. Oil is processed on the Montrose Field platform prior to export to shore via the Forties Pipeline System.

Joint-venture partner interests in the Brechin Field development and in the Montrose, Arbroath and Arkwright Fields are Paladin Expro Limited (operator) 58.97 per cent and Energy North Sea Limited, a wholly owned subsidiary of Marubeni Corporation, 41.03 percent.

Colin Reid, Paladin's Aberdeen-based UK General Manager, commented:

'The successful development of Brechin is a milestone for both Paladin as an operator and for the MonArb area. First oil has been delivered on budget and on schedule only thirteen months after discovery, demonstrating the ability of Paladin and its partners and contractors to exploit satellite development opportunities efficiently.'