Paladin announces the discovery and successful testing of oil in Dalia 1, the latest
exploration well in the Adam Concession in southern Tunisia.
The well, operated by ENI Tunisia B.V. (“ENI”), was spudded on 20th May 2004 and
encountered several oil and gas bearing zones distributed throughout the Acacus A
and Tannezuft sandstones at a depth of approximately 3400 metres.
During initial testing of selected oil-bearing intervals across 11 metres of perforations,
the well produced at a rate of approximately 3,600 bpd of 44 degrees API oil on a
48/64” choke and at a flowing wellhead pressure of 1,150psi.
The well has been completed and suspended as a production well pending approval of
a field development plan and hook up to existing process and export facilities some 13
km distant. Paladin anticipates that field production will commence within the next
few weeks. The rig will move shortly to the adjacent Hawa Field to drill a second
production well.
If the Tunisian state oil company, ETAP, confirms their intent to participate, Paladin
will have a 7% interest in the Dalia Field. Paladin’s partners’ will be ETAP (30%),
ENI Tunisia B.V (17.5%), ENI Tunisia BEK (17.5%) and Pioneer Natural Resources
Company (28%).
Roy Franklin, Chief Executive of Paladin, commented:
“This is our third oil and gas discovery in succession in Tunisia, which, with rapid
tieback to existing process facilities, should be contributing to the Company’s
operating cash flow in a matter of weeks. In addition, negotiations are ongoing to
allow the commercial production of gas from the Adam Concession to commence
later in 2004.”
