Paladin Resources PLC
24 January 2001
PALADIN RESOURCES plc
('Paladin' or 'the Company')
Acquisition of Petro-Canada's Norwegian Assets
Paladin, the oil and gas exploration and production company with interests in
the North Sea, USA and Indonesia, announces that it has completed the
acquisition of Petro-Canada's oil and gas assets in Norway following the
approval of all necessary Norwegian regulatory authorities.
The consideration was US$76 million in cash at the effective date of 1st July
2000 subject to adjustments for working capital, and for cashflow movements
and interest from that date to completion. The actual figure paid, following
these adjustments and a US$7.6 million deposit paid after Paladin shareholder
approval in November 2000, was US$42 million.
The consideration has been met using the Company's new US$150 million
syndicated revolving credit facility led by The Chase Manhattan Bank.
Under a separate Subscription Agreement, Petro-Canada agreed to subscribe for
10 million new Ordinary Shares of 10 pence each in Paladin at completion at a
price of 27.3 pence per share. Application has been made to the UK Listing
Authority and the London Stock Exchange for the admission to the Official List
and to trading on the London Stock Exchange's market for listed securities of
these shares. It is expected that admission will become effective on Thursday
25th January 2001.
Following the above transactions, the Company's current net debt is
approximately US$ 75 million.
Proven and probable reserves added at completion to the Company's existing
reserves base are approximately 19 million barrels of oil and NGLs and 8
billion cubic feet of gas, and the Company's net daily production has now
increased to approximately 18,000 barrels of oil equivalent per day.
Roy Franklin, Chief Executive of Paladin, commented:
'We have entered a new and exciting phase in Paladin's development. Our assets
are performing well, and we are in a strong financial position. The Norwegian
continental shelf still offers huge growth potential and we are well placed to
build the business as restructuring of the Norwegian oil and gas industry
gathers pace. We relish that challenge.'
24 January 2001
Paladin Resources plc Tel: 020 7534 2900
Roy Franklin, Chief Executive
Cuth McDowell, Finance Director
College Hill Tel: 020 7457 2020