The drilling of an appraisal well on the Oselvar discovery on the Norwegian continental shelf has been completed by the operator. The well was tested and the result confirms a reservoir thickness of about 50 metres with good reservoir characteristics. PA Resources has a 30 percent interest in the license. The operator Dong E&P Norge AS has announced that they have completed the drilling of the appraisal well 1/3-10 on the Oselvar discovery in the production license 274 in Norway. Oselvar is located in block 1/3, 20 kilometres west of the Gyda Field in southern North Sea on the Norwegian Continental Shelf. The well 1/3-10 is an appraisal well for gas and oil which was discovered in the Oselvar structure in the 1990s in the Palaeocene Forties Formation. The objectives for the appraisal well were to investigate reservoir deliverability and to collect fluid samples for fluids characterisation. The appraisal well was drilled with the Mærsk Guardian jack-up rig in 72 metres of water, to a total depth of 3,288 metres. It was drilled down flank of the initial discovery well. The well was stopped in sediments of Early Paleocene age. The collected data proved that the reservoir contains oil/condensate with associated gas. The reservoir thickness of about 50 metres and the expected good reservoir properties were confirmed. The production test confirms better reservoir flow characteristics than what was expected in comparison to previous wells on the Oselvar discovery. The well was tested and the flowing rate was 530 standard cubic metres (Sm3) oil per day with 252,000 Sm3 per day associated gas and no water. This is equivalent to 3,333 barrels of oil per day and 1,587 barrels of oil equivalents gas per day. The next step is now to drill a down flank side track, 1/3-10 A, to establish the oil-water contact and for water sampling. After that, the appraisal well will be plugged and abandoned. - The result of the drilling is very satisfying and leads us closer to a development of the Oselvar discovery, says Ulrik Jansson, President and CEO at PA Resources AB. During the summer of 2008, the rig Mærsk Guardian will drill an exploration well at the Ipswich prospect, south of the Oselvar discovery, also in the PL 274. The licensees in PL 274 are the operator DONG E&P Norge AS (40 percent), PA Resources Norway AS (30 percent), NORECO (15 percent) and Revus Energy AS (15 percent). Stockholm/Oslo, January 4, 2008 PA Resources AB (publ) For more 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 and President, PA Resources Norway AS Telephone: +47 21 56 76 10 E-mail: info@paresources.no 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.