PA Resources assigned interest in split Netherlands block

PA Resources has been assigned a 30% share in new license block Q10a offshore Netherlands.

Offshore staff

STOCKHOLM, Sweden -- PA Resources has been assigned a 30% share in new license block Q10a offshore Netherlands. Twenty percent of the company's license shares in the adjoining block Q7 have been transferred to a state-owned company in the Netherlands.

The Dutch Ministry of Economic Affairs has granted permission for the splitting and part-transfer of the exploration license Q10 in the Anglo-Dutch basin offshore Netherlands. The license has been split into a north-easterly area which is named Q10a and a south-westerly area named Q10b.

Cirrus has remained operator of Q10b but has transferred its equity in Q10a to PA Resources and Smart Energy Solutions. The interests in block Q10a are now held by the operator Smart Energy Solutions (30%), PA Resources (30%), and the State-owned oil and gas company Energie Beheer Nederland (40%).

At the same time, Energie Beheer Nederland has exercised its right to acquire 40% of the exploration license block Q7, reducing PA Resource's as well as its partner Smart Energy Solution's shares in the license from 50% to 30%. The license shares in block Q7 are now held by the operator Smart Energy Solutions (30%), PA Resources (30%), and Energie Behe er Nederland (40%).

"Block Q10a, which covers approximately 53 sq km (20 sq mi), contains the south-easterly extension of the Q7-FA gas accumulation discovered in 1973," says Ulrik Jansson, president and CEO of PA Resources. "The combined Q7 and Q10a area has therefore a significant remaining potential."

10/23/2008

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