Paladin Resources PLC
18 November 2002
Paladin Resources plc
("Paladin" or "the Company")
US$15 million Acquisition of a Further 18 per cent Interest in the Veslefrikk
Field, Norwegian North Sea
Paladin announces that its wholly owned subsidiary, Paladin Resources Norge AS,
has signed a Sale and Purchase Agreement with TotalFinaElf Exploration Norge AS
("TFE"), under which Paladin will acquire TFE's 18 per cent interest in the
Veslefrikk Field in the Norwegian North Sea, increasing its overall stake in the
field to 27.0 per cent.
The consideration is NOK 110 million (approximately US$15 million) in cash,
subject to adjustments for working capital as at the effective date of 1 October
2002 and for cash flow movements between the effective date and completion,
which is expected to take place during the first quarter of 2003. The
consideration will be satisfied from the Company's bank facilities.
The Veslefrikk Field, which is operated by Statoil, came on stream in 1989 and
is currently producing at approximately 30,000 barrels of oil per day ("bopd")
(8,000 bopd net to a 27 per cent interest) with production forecast to continue
until at least 2014. Proven and probable oil reserves acquired as at the
effective date are approximately 15 million barrels.
The planned 2003 work programme includes an active infill and exploration
drilling programme. In addition, Statoil has recently initiated a field-wide
project targeted at boosting production and reducing operating costs.
On completion of the transaction, Paladin's net daily production is expected to
increase from 33,000 to approximately 38,000 barrels of oil equivalent per day.
The acquisition is subject to the approval of the Norwegian regulatory
authorities and to Norwegian State pre-emptive rights.
Roy Franklin, Chief Executive of Paladin, commented:
"This interest was no longer material for TFE and provided Paladin with the
opportunity to treble our interest in the field on attractive terms and with no
incremental overhead costs."
18 November 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 33,000 barrels of oil equivalent per 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
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