PA Resources secures promising Western Greenland license

Offshore Staff

STOCKHOLM -- PA Resources has been awarded shares in a license for exploration of oil and gas in Western Greenland by the Greenlandic self-governing authorities and the Danish Government. The awarded area, West Disko block 8, in the Disko-Nuussuaq region offshore Western Greenland, covers an area of approximately 11,100 sq km (4,286 sq mi). PA Resources is operator of the license with an 87.5% share.

Geological data from the area show that the bedrock in the area is very favorable for the presence of oil and gas, according to the company. West Disko block 8 is situated close to an area with natural oil seeps to the surface. Recent evaluation of seismic data, in combination with magnetic and gravity data, indicate the presence of deep basins with some giant structures in the region, which is considered very promising with regard to generation, migration, and trapping of hydrocarbons.

PA Resources and its partner Nunaoil will now begin an extensive work program in the Disko West area, where the companies will assemble 4,000 m (2,485 mi) of 2D seismic data, potentially followed by 3D seismic data as well as other geophysical data during the initial period. After this the two companies will decide on how to continue with exploration drillings in the area.

05/30/2008