Paladin?s Indonesian production drops to 5,503 BOEPD in H1 2003

UK independent oil company Paladin Resources PLC reported Tuesday its Indonesian net entitlement production had declined to 5,503 barrels of oil equivalent per day (BOEPD) in the first half of 2003 from 6,928 BOEPD in the same period last year.

?The decrease in production was due to a combination of natural production decline and higher oil prices, which reduced the level of entitlement barrels reported,? Paladin said in its report to the London Stock Exchange.

Paladin?s Indonesian production was from the South East Sumatra production sharing contract (PSC) and the North West Java PSC areas, where the company holds 7.48 percent and 2.45 percent of working interest respectively. According to Paladin, its Indonesian currently accounts for 14 percent of total group production.

Paladin also reported that engineering studies were underway for the development of gas reserves in the South East Sumatra PSC. Meanwhile, the heads of terms have been signed with state utility firm PLN for the extension of the gas sales contract relating to the North West Java PSC. (robert)