Positive results of the drilling of two new wells in the Algerian desert: production tests registered total flows of about 1 million cubic meters per day

Milan, 26 January 2009 – Edison (18.5%), in joint-venture with Sonatrach (25%), Repsol (33.7%) and RWE Dea (22.5%), has made two new gas finds in the Algerian desert.

The first of the two finds, well KLS-1, is part of a new isolated structure known as Kahlouche Sud in the North Reggane Permit. The first production tests registered flows of 629,000 cubic meters per day of gas at a depth of 3,720 meters. This is the fourth discovery made by the consortium in the basin.

The discovery in the OTLH-2 well in the M’Sari Akabli Permit registered a test flow of 249.000 cubic meters/day of gas at a depth of 1,280 meters, and 110.000 cubic meters/day of gas at a depth of 1,340 meters.

Technical information:
The production tests carried out in OTLH-2 well in the Emsian level, at a depth of about 1,280m (Lower Devonian), yielded 249.000 cubic meter/day of gas, through a 32/64” choke and a well head pressure (WHP) of 1,519 psi and in the Sieginian level, at about 1,340m (Lower Devonian), yielded 110.000 cubic meter/day of gas, through a 32/64” choke and a well head pressure (WHP) of 812 psi.

The well KLS-1 at a depth of 3720m has tested the Sieginian (Lower Devonian) with a gas flow of 629.000 m3/d, for a choke opening of 32/64”, showing a well head pressure of 3551 psi.

During 2005-2007, three discoveries were performed in Reggane: Sali-1 (SLI-1), Kahlouche-2 (KL-2) and Reggane-6 (RG-6) exploratory well in Upper Ordovician, plus two positive appraisal wells. The significance of these discoveries is not only the important flow in the Lower Devonian level and the size of the new structures, but also the fact that the positive news is reinforcing the future development of the area.

Founded in 1883, Edison is Europe’s oldest energy company. At the end of 2007, having completed one of Europe’s most ambitious capital investment plans during the past five years, it had an installed capacity of about 12,000 MW. In the natural gas area, Edison is Italy’s second largest operator with activities in every aspect of the business: from exploration to production, importation, distribution and sales. In 2007, Edison had revenues of 8.3 billion euros and earned a net profit of 497 million euros.

(Edison Press Release)