Paladin reports 2003 Indonesian oil, gas production

UK independent oil company Paladin Resources PLC reported Wednesday its Indonesian oil production had declined to 4,282 barrels of oil per day (BOPD) in 2003 from the previous year's 5,175 BOPD, while gas production increased to 5.3 million standard cubic feet per day (MMSCFD) from 5.0 MMSCFD.

Paladin said its infill drilling program was held back during 2003 at the South East Sumatra production sharing contract (PSC), to enable further technical work to identify new targets.

"This resulted in a faster decline in oil production but this trend should reverse as drilling activity picks up during 2004," the company said.

Paladin's Indonesian production was from the South East Sumatra PSC and the Offshore North West Java PSC areas, where the company holds 7.48 percent and 2.45 percent of working interest respectively.

Paladin said that as of January 1, 2004, its working interest in the blocks' proven reserves were 24.8 million barrels of oil, and 35.6 billion standard cubic feet of gas.

The company added that it withdrew from the Blora PSC (13.3 percent) in Central Java in 2003, as the remaining prospectivity was not sufficiently attractive to meet its investment criteria. (robert)