Paladin Resources PLC
28 August 2002
Paladin Resources plc
("Paladin", "the Company" or "the Group")
US$22 million Acquisition of 14.49 per cent Interest in Ross Field, UK North Sea
Paladin announces that its wholly owned subsidiary, Paladin Expro Limited ("
Expro"), has signed a Sale and Purchase Agreement with Kerr-McGee Resources
(U.K.) Limited ("Kerr-McGee"), under which Expro will acquire Kerr-McGee's 14.49
per cent fixed unitised interest in the Ross Field in the UK Central North Sea.
The consideration is US$22 million in cash, subject to adjustments for working
capital as at the effective date of 1 July 2002 and for cash flow movements
between the effective date and completion, which is expected to take place
during the third quarter of 2002. The consideration will be satisfied from the
Company's bank facilities.
The Ross Field was developed using the "Bleo Holm" Floating, Production, Storage
and Offloading Facility ("FPSO") and was brought on stream in 1999. The field is
currently producing at ca. 10,000 barrels of oil per day ("bopd"), with
production forecast to continue until 2011.
The nearby Blake Field, in which Paladin holds a 2.4 per cent interest, also
produces through the Bleo Holm FPSO, at a current rate of ca. 42,000 bopd. As a
result of the commercial agreements between the Blake and Ross Field partners,
Paladin will receive significant tariff income from Blake Field production as a
partner in the Ross Field.
On completion of the deal, Paladin's net UK production will rise by ca. 1,500
bopd to ca. 4,000 bopd. Total Group production will increase to ca. 35,500
barrels of oil equivalent per day. Proven and probable reserves to be booked on
acquisition will be ca. 3.5 million barrels of oil equivalent.
The acquisition is subject to the approval of the UK regulatory authorities.
Roy Franklin, Chief Executive of Paladin, commented:
"This deal has two attractions for Paladin. Not only do we see the potential for
added value in the Ross Field through incremental investment but also, as a
partner, we have been delighted with the performance of the Blake Field to date.
This deal increases our exposure to the field's future performance as a result
of the tariffing arrangements that are in place."
28 August 2002
Paladin Resources plc Tel: 020 7534 2900
Roy A. Franklin, Chief Executive
College Hill Tel: 020 7457 2020
Paladin Resources plc is a UK listed oil exploration and production company,
currently producing approximately 34,000 barrels of oil equivalent a day from
producing assets in the UK, Norway, Denmark, Indonesia and the United States.
Paladin holds exploration acreage in its producing areas and also in Romania and
This information is provided by RNS
The company news service from the London Stock Exchange