PA Resources Says Production from Didon Lower than Planned

PA Resources says oil has been sold at the record high average sales price of US $88.72 per barrel during November, to be compared with the average price during January – September 2007 of US $66.98 per barrel. All the production for November 2007 comes from the Tunisian onshore- and offshore assets.

The El Bibane project in Tunisia has made good progress in November and the field will restart production in December. Start-up of the Norwegian Volve field is also planned for before the end of the year. Including these production starts, PA Resources will meet the forecasted production of 16,000 barrels of oil per day by end of 2007.

The company says an existing subsea well has been put back into production on the Didon field in Tunisia during November. Production regularity on the Didon field was recorded to 99 percent for the period.

The lower than planned production for the month is caused by the underperformance of one well on the Didon field.

This is caused by an unfavorable well trajectory in the reservoir combined with very good reservoir quality in the field. It can only be amended through a work over and recompilation program. Such a program is currently being analyzed. Production during first quarter 2008 will suffer from the underperformance. However guidance on average production for 2008 is maintained.

The preparations for the 2008 drilling program in Tunisia are well advanced. The Ensco 85 jackup will start in the first quarter 2008 by drilling a new production well on the Didon field, followed by an exploration well in the northwestern parts of the field.