PA Resources has signed an agreement with Murphy West Africa Ltd to acquire a 35
percent share in the Mer Profond Sud Permit including the Azurite Field in the
Republic of Congo. The acquisition adds recoverable reserves of 26 million
barrels of oil to PA Resources as well as significant resources associated with
a large exploration portfolio.
The oil- and gas company PA Resources AB has signed an agreement with Murphy
West Africa Ltd, part of Murphy Oil Corporation, to acquire a 35 percent share
in the Mer Profond Sud Exploration Permit and a 35 percent share in the Azurite
field, which includes the ongoing Azurite field development project.
The acquisition adds significant reserves and resources to PA Resources
established operations in West Africa. PA Resources is already present in the
Republic of Congo as operator of the block Marine XIV.
“PA Resources is excited by this new opportunity to participate in the
exploration of Republic of Congo's offshore sector. Together with our existing
Congolese portfolio, this acquisition demonstrates PA Resources' ambition to
grow and expand. The expected production from the Azurite field, together with
our existing production, carry us closer to achieving our production goal of
50,000 barrels per day, says Ulrik Jansson, President and CEO of PA Resources
AB.
The asset is located in the prolific Lower Congo Basin adjacent to Angola's
deepwater Block 14 and the Haute Mer Permit in the Republic of Congo. The Mer
Profond Sud Permit includes the Azurite Marine Field, which was discovered in
2005. The field is appraised by two wells, both of which were sidetracked. All
wells have encountered oil and the well “AZRM-2ST1” was tested at a rate of
7,893 barrels of oil per day and 4.63 million standard cubic feet gas per day.
Recoverable reserves are estimated at 75 million barrels (gross) of which 26
million barrels net to PA Resources.
The Field Development Plan was approved by the Congolese Ministry of State,
Ministry in charge of Hydrocarbons, in June 2007 and contemplates development
via a spread-moored Floating-Drilling-Producing-Storage-Offloading (FDPSO)
vessel with sub-sea wells. Expected production start is in the second quarter
2009 with an expected peak production of 40,000 barrels of oil per day (gross)
of which 14,000 barrels of oil per day net to PA Resources.
The Mer Profond Sud Permit also includes a large exploration block covering in
excess of 3,500 km2 with 19 un-drilled prospects and identified leads. Four of
these have been matured to drill-ready status, with additional resources
associated with a large exploration portfolio.
The purchase price amounts to USD 110 million plus an additional carry of
approximately USD 23 million for two exploration wells. Additionally, the
parties have agreed on a performance related price adjustment to be settled one
year after the start of production. The financial consolidation into the PA
Resources Group will take place during the first quarter 2008. The acquisition
is subject to normal regulatory approvals by the Congolese Ministry of State,
Ministry in charge of Hydrocarbons. PetroAdvisor has acted as advisor for PA
Resources in the acquisition process.
Murphy West Africa Ltd, part of Murphy Oil Corporation (NYSE: MUR), retains a 50
percent share in the permit as well as in the Azurite field and will remain
operator. Partners on the block include PA Resources AB (35 percent
participating interest) and SNPC (15 percent participating interest).
Stockholm, November 20, 2007
PA Resources AB (publ)
For further information, please contact:
Ulrik Jansson
President and CEO
PA Resources AB
Telephone: +46 70 751 41 84
E-mail: info@paresources.se
or
Trond Bjerkan
Vice President
PA Resources AB
Telephone: +47 21 56 76 10
Mobile: +47 900 55 921
E-mail: info@paresources.no
Invitation to an analyst and press conference
PA Resources will hold an analyst and press conference today Tuesday, the 20th
of November, at 10.00 a clock (CET), at Felix Conference Centre at Aker Brygge,
Bryggetorget 3 in Oslo, Norway. The press conference will be held in English.
You can also follow the press conference via PA Resources' website
www.paresources.se, where it will be possible to listen to the presentation,
view the Powerpoint slides and ask questions that will be answered as far as
possible at the end.
You can also listen to the press conference by participating in a conference
call. Please use the Conference ID 24991265, when calling one of the following
numbers. You may listen to the replay of the conference, up to one week after
the call.
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| Country | Number |
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| Norway (Free Call) | 800 193 95 |
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| Sweden and International (Dial In) | +44 (0) 1452 552 510 |
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| UK (Free Call) | 0800 694 2370 |
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| USA (Free Call) | 1866 966 9444 |
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PA Resources AB (publ) is a fast growing oil and gas group company with the
business strategy to acquire, develop and exploit oil and gas reserves, as well
as explore new findings. The Group operates in Tunisia, Norway, Great Britain,
Denmark, Equatorial Guinea and the Republic of Congo (Brazzaville). PA Resources
is today one of the largest oil producers in Tunisia. The parent company is
located in Stockholm, Sweden.
PA Resources AB's net sales amounted to approximately SEK 843 Million during
2006. The company is primary listed on the Oslo Stock Exchange in Norway
(segment OB Match) and secondary listed on the OMX Nordic Exchange in Stockholm,
Sweden (segment MidCap). For additional information, please visit
www.paresources.se.
