Paladin Resources PLC
13 March 2002
PALADIN RESOURCES plc
("Paladin" or "the Company")
£11.6 million Acquisition of Further Stake in Goldeneye Field and
Approval of Field Development
Paladin announces that its wholly owned subsidiary, Paladin Expro Limited, has
signed a Sale and Purchase Agreement with Shell U.K. Limited for Paladin to
acquire a further 22.5 per cent interest in UKCS Block 20/4b, increasing its
overall stake in this block to 37.5 per cent and its interest in the Goldeneye
Field, as a result, from 3 per cent to 7.5 per cent, subject to redetermination.
The consideration is £11.6 million in cash subject to certain adjustments for
interest, for working capital as at the effective date of 1 January 2002 and for
cash flow movements in respect of the period between the effective date and
completion, which is expected to take place in April. The consideration will be
met from existing resources.
Formal approval for the development of the Goldeneye Field was announced by
Energy Minister Brian Wilson today. The £300 million development will involve
the drilling of five production wells from a small unmanned platform tied back
to a new processing module onshore at St Fergus, with first production expected
by Q4 2004, building to plateau production of 300 million standard cubic feet of
gas per day.
Sales agreements for the sale and purchase of gas and condensate at the
processing plant product exit point have been agreed with Shell and Esso.
As a result of the acquisition and today's announcement regarding approval of
the field development, Paladin's booked proven and probable reserves from its
7.5 per cent stake in Goldeneye will be 9.3 million barrels of oil equivalent.
At peak production from 2005 onwards, the field will increase Paladin's
production by some 4,500 barrels of oil equivalent per day.
The acquisition is subject, inter alia, to the approval of the UK regulatory
Commenting on the acquisition and field development approval, Roy Franklin,
Chief Executive of the Company, said:
"This is excellent news for Paladin - with no additional overhead costs, we are
more than doubling our stake in this high quality development, increasing the
UKCS and gas elements of the Company's reserves base and boosting Group
production from 2004 onwards."
13 March 2002
Paladin Resources plc Tel: 020 7534 2900
Roy A. Franklin, Chief Executive
Cuth McDowell, Finance Director
College Hill Tel: 020 7457 2020
This information is provided by RNS
The company news service from the London Stock Exchange