PDO Discovers 'Significant' Oil at Budour Northeast Field

Petroleum Development Oman (PDO) has discovered significant new volumes of oil at the Budour Northeast oil field, which was itself discovered only last year. In addition, the Company may also have found a significant volume of oil in a rock formation at the Rabab-Southeast field. Both fields are located in the south of the country, near the Birba field.

The new discovery at the Budour Northeast field was revealed by Buduor NE-2, a well drilled in 2007 to follow up the field's original discovery well, Budour NE-1. It consists of a reservoir lying below the one tapped by the Budour NE-1. When tested, Budour NE-2 produced as much as 5800 barrels of oil per day. Both Budour NE wells – as well as a third drilled in the same area – have been hooked up to PDO's pipeline infrastructure, thereby contributing to the Company's production.

The oil at Rabab-Southeast was discovered by an exploration well, which is still being tested. The results of the well test still remain to be evaluated.

"The discovery of these reservoirs goes a long way towards realising PDO's aspiration of replacing produced volumes in any give year with new reserves," commented PDO's Managing Director John Malcolm.

PDO's Exploration Director Martin Stauble added: "The year 2007 turned out to be an excellent exploration year. In fact, it was the best year for oil exploration since 1994. And I can say that good exploration results are continuing into 2008. We are getting some very encouraging preliminary data from our exploration wells in north Oman. But these results need to be confirmed through well testing."