Paladin Resources PLC
15 July 2002
Paladin Resources plc ("Paladin")
Acquisition of Interests from Norsk Hydro Produksjon a.s.
Paladin announces that its wholly owned subsidiary Paladin Resources Norge AS,
("Paladin Norway"), has signed a Sale and Purchase Agreement under which Paladin
Norway will acquire from Norsk Hydro Produksjon a.s., ("Hydro"), their entire 35
per cent interest in Norwegian Production Licence 143 (Block 1/2), and a 20 per
cent interest in Norwegian Production Licence 271 (Block 7/1).
For their 35 per cent stake in Block 1/2, Paladin Norway will pay Hydro 10
million Norwegian Kroner (ca £0.9 million), subject to adjustment for cash flows
and interest from the effective date of 1st July 2002 until completion.
To date, there has been one oil discovery in Block 1/2 which confirmed the
extension of the UKCS Blane Field into Norwegian waters. Further appraisal
drilling is required to establish the reserve potential of this discovery and
the distribution of reserves between the UK and Norway. Paladin anticipates that
such drilling will occur in 2003-2004, subject to partner approval. Block 1/2
has, in addition, exploration prospects and leads identified at Tertiary,
Jurassic and Triassic levels. In the event that an exploration well is drilled
on this block within 3 years from the effective date, Hydro have the right to be
reassigned a 15 per cent interest in the block, excluding the Blane Field, at no
cost. In the event that an exploration well is not drilled then Hydro have the
right to be reassigned their entire 35 per cent interest in the block, excluding
the Blane Field.
To acquire a 20 per cent interest in Licence 271,in which Hydro currently hold a
60 per cent interest, Paladin Norway will pay 50 per cent of the gross costs of
a 3-D seismic survey over Block 7/1 up to a total maximum net cost of 30 million
Norwegian Kroner (ca. £2.6 million).
This survey will be acquired during the third quarter of 2002 and will focus on
a number of interesting leads at Tertiary, Jurassic and Triassic level. Given
encouragement from the results of the 3-D seismic survey, an exploration well
could be drilled in 2004.
Both deals are subject to the approval of joint venture partners and the
Norwegian regulatory authorities. It is anticipated that completion will occur
in the third quarter of 2002.
15 July 2002
Roy Franklin, Chief Executive of Paladin, commented:
"This is a significant step forward in the development of our Norwegian
business. We would hope to see early further appraisal of the Blane Field, and
there are interesting exploration opportunities to be pursued in Block 1/2 and
in Block 7/1- an ideal complement to our existing Norwegian production."
Paladin Resources plc Tel: 020 7534 2900
Roy A. Franklin, Chief Executive
Cuth McDowell, Finance Director
College Hill Tel: 020 7457 2020
Growth in Paladin's Scandinavian Operations 2001-2002
US$76 million acquisition of Petro-Canada's stakes in the Njord, Veslefrikk and
US$35 million acquisition of Enterprise Oil's Danish oil and gas interests.
£2.8 million acquisition of a further 5.263 per cent. interest in Danish Siri
£26 million acquisition of a further 7.5% stake in the Njord Field and 20% stake
in the Brage Field from the Norwegian State.
£10.7 million acquisition of further interests in the Siri and Stine 2 Oil
Fields, offshore Denmark
This information is provided by RNS
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