Shell & PanOcean Completes Short Term Well Test

Shell Gabon S.A. and its co-venturer Pan-Ocean Energy Corporation Limited announced a successful short-term well test on its recently drilled AWOKOU-1 ST3 appraisal well, onshore Gabon, West Africa. In September 2004, the co-venturers announced a light oil discovery in the exploration well AWOKOU-1 on the Koula prospect in the Awoun Permit. Koula is located eight kilometres to the north of the Total/Shell producing Avocette field and five kilometres to the northwest of the PanOcean's producing Obangue field onshore Gabon, West Africa. Shell, the operator, and PanOcean each have a 50% interest in the well.

Over the period of a six day test, oil rates of 4,000 barrels per day (“bopd”) were produced at stable wellhead flowing pressures of approximately 640 psia on a 46/64 inch choke with a gas oil ratio of 400 scf/bbl. No water production was experienced throughout the test. Oil gravity was confirmed to be 31 degrees API with properties similar to nearby fields. Due to surface facilities limitations, the flow rate was constrained to 4,000 bopd. The result of the production test is encouraging for the development of the field.

Shell and PanOcean are currently determining the feasibility of a development programme. The co-venturers are additionally planning to appraise the Damier discovery (announced in November 2004) in the first half of 2005.