Development of reserves in 2010

At the end of each year PA Resources reviews and adjusts the volumes of reserves and resources. The volymes are affected by inter alia production during the past year, change of ownership of oil licenses, decided development projects, discoveries made and bedrock data obtained from new wells. The valuation is also based on estimates of commerciality of reserves and resources, which changes with the oil price.

Development of PA Resources' reserves in 2010

Working Interest

Net Entitlement
(million barrels of oil equivalents 1P/P90 2P/P50* 1P/P90 2P/P50*
As of 31.12.2009 51.8 78,9 31.5 48.2
Production -3.9 -3.9 -2.4 -2.4
New development projects 2.1 2.9 1.4 2.0
Revisions of previous estimates -4.0 -5.4 0,8 2,0
As of 31.12.2010 46.0 72.5 31.3 49.8

 * 1P is equivalent to a P90 estimate. 2P is equivalent to a P50 estimate and is the sum of Proved plus Probable Reserves and denotes best estimate scenario of reserves.

Main reasons for the changes in 2010

  • Production:
    PA Resources working interest production during the year was 3.9 million barrels of oil, which has reduced the reserves by a corresponding amount.
  • Development projects:
    PA Resources commenced two new development projects in 2010 – Didon North in Tunisia and the Alen Field in Equatorial Guinea.
  • Revisions and adjustments:
    -     The Azurite Field’s 2P reserves were reduced by 11.5 million barrels as the result of a review performed by Ryder Scott. With the benefit of new fiscal terms, the reduction is only 1.9 million barrels of oil equivalents on a net entitlement basis.
    - Reserves at the Douleb and Semmama fields onshore Tunisia have been revised slightly upwards.
    - Reserves at the Zarat field in Tunisia are unchanged after review by a third party.
    - Reserves at the Elyssa field have been re-allocated to the contingent resources category after 3D data showed that additional drillings need to be performed.
    - All undeveloped fields on the Zarat license in Tunisia are shown on a 100% WI basis which represents PA Resources’ current interest. These were previously reported on a 45% WI basis assuming that the state owned oil company would opt to utilise its right to a 55% interest in the licence.
    - The total adjustments according to the two last paragraphs above are +3.8 and +5.2 million barrels respectively for 1P and 2P reserves.

Reserves and resources*, changes between 2009 and 2010
(million barrels of oil equivalents)

*Reserve figures are reported based on working interest.