Burlington Resources & Talisman Reveal Successful Appraisal Well in Algeria

Burlington Resources Inc., through its wholly owned subsidiary, LL&E Algeria Ltd.; Sonatrach, the National Oil and Gas Enterprise of Algeria; and Talisman Energy Inc. of Canada through its wholly owned subsidiary, Talisman (Algeria) B.V.; has announced successful test results from the MLN-5, an appraisal well on the Menzel Lejmat Block 405 in the Berkine Basin of Algeria. An eight-meter (26 ft) zone in the Devonian Upper Strunian F1 Formation was tested and flowed at 6,820 b/d of 44 degree API gravity oil and 6.77 MMcf/d natural gas on a one-inch choke with 1,038 psi flowing wellhead pressure. Two other thin hydrocarbon zones identified in the Devonian Lower Strunian and in Carboniferous sandstones were not tested and will be evaluated in future drilling.

LL&E Algeria Ltd. operates the MLN-5 well, located approximately 2.6 km (1.6 miles) south-southwest of the MLN-4 well, which tested oil at a rate of 11,144 b/d from a Devonian Formation and 11 km (6.8 miles) east-northeast of the MLW-1, which tested oil at a rate of 1,545 b/d. Both wells produced from the same Strunian F1 Formation as the MLN-5. The MLN-5 well is also located 13.7 km (8.5 miles) north-northeast of the MLE-1 well, which flowed 1,197 b/d oil from the Strunian F1.

Through LL&E Algeria Ltd., Burlington Resources has a 65% working interest in Block 405 under a PSC with Sonatrach. Talisman Energy holds the remaining 35% working interest. Sonatrach has an option to participate in the development and production of commercial discoveries. Burlington Resources and Talisman are entitled to recover exploration costs out of production during the exploitation phase.