UK Paladin 2002 Indonesian activities

The following is the excerpt from 2002 preliminary results of British independent oil and gas company Paladin Resources published on March 19, 2003.

SOUTH EAST SUMATRA (Paladin 7.48%)

Gross production from the PSC averaged 114,000 bopd during 2002 (Paladin net entitlement 4,521 bopd). The production decline has continued to be slowed due to a programme of infill drilling and incremental field developments.

The plan of development for gas reserves in the PSC area has been approved. This will result in the development of 365 Bscf of gas for sale to PGN at a plateau rate of 100 MMscfd. This has allowed the Group to book its entitlement share of these reserves.

OFFSHORE NORTHWEST JAVA (Paladin 2.45%)

Gross production from the PSC averaged 49,970 bpd of oil and NGL and 261 MMscfd of gas (Paladin net entitlement 1,479 boepd).

A programme of infill drilling and incremental gas developments has resulted in a slowing of the oil production decline and maintenance of gas production potential. Further scope exists for increased gas sales through the renegotiation of existing sales contracts.

EXPLORATION

The Ngawi-1 exploration well was drilled in the southern part of the Blora PSC. The well was plugged and abandoned as a dry hole. Additional seismic will be acquired in the contract area during 2003 before further drilling plans can be finalised.(*)