Paladin Resources PLC
28 November 2001
Paladin Resources plc
('Paladin' or 'the Company')
£2.8 million Acquisition of a further 5.263 per cent. interest in Danish Siri
Paladin announces that it has signed an Assignment Agreement for Paladin to
acquire from Phillips Petroleum International Corporation Denmark ('Phillips')
a further 5.263 per cent. interest in Danish Licence 6/95, which contains the
producing Siri Field and the Stine oil discoveries ('the Phillips Interest'),
increasing the Company's interest in Licence 6/95 to 25.263 per cent.
The basic consideration is 35.8 million Norwegian Kroner (approximately £2.8
million) in cash as at the effective date of 31 December 2001, subject to
adjustments for cash flows and interest between the effective date and
completion. Completion is expected to occur in early January 2002. The
consideration will be met from existing bank facilities.
Current production from the Siri Field and the Stine Segment 2 oil
accumulation totals ca. 42,000 barrels of oil equivalent per day. Development
plans for the Stine Segment 1 oil discovery to be tied back as a satellite to
the Siri Field are under active consideration.
Paladin acquired the right to purchase the Phillips Interest on the
acquisition of Enterprise Oil Denmark Limited in September 2001.
Completion is subject to the approval of the Danish Energy Agency.
Roy Franklin, Chief Executive of Paladin, commented:
'The performance, to date, of both Siri and Stine has exceeded our original
expectations - we are optimistic that this performance will continue and on
that basis are delighted with this acquisition.'
28 November 2001
Paladin Resources plc Tel: 020 7534 2900
Roy A. Franklin, Chief Executive
Cuth McDowell, Finance Director
College Hill Tel: 020 7457 2020