PA Resources acquires assets in Congo

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.

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.