Paladin Resources PLC
19 December 2002
NOT FOR RELEASE IN THE US, CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN
Paladin Resources plc
("Paladin", "the Company" or "the Group")
US$18.5 million Acquisition of a Further 16.33 per cent Interest
in the Ross Field and interests in adjacent acreage, UK sector of the North Sea
Paladin Receives US$9 million from Repsol in an Out-of-Court Settlement
Acquisition of a further interest in the Ross Field
Paladin announces that its wholly owned subsidiary, Paladin Expro Limited ("
Expro"), has today entered into conditional agreements with LASMO (ULX) Limited,
AGIP (UKCS) Limited and Monument Exploration and Production Limited (together "
AGIP"), under which Expro will acquire AGIP's 16.33 per cent fixed unitised
interest in the Ross Field in the UK Central North Sea. In addition, Expro will
acquire AGIP's interests in acreage adjacent to the Ross Field, which includes
the Phoenix and West Wick discoveries, subject to existing joint venture
partners' pre-emptive rights. As a result of this transaction, Expro's interest
in the Ross Field will increase to 30.82 per cent. Reference to this transaction
was set out in the prospectus published by the Company on 12 December 2002 in
connection with the proposed acquisition of a portfolio of North Sea assets from
BP and Amerada Hess.
The total consideration is US$18.5 million in cash, subject to adjustments for
working capital as at the effective date of 31 December 2002 and for cash flow
movements and interest between the effective date and completion. The
consideration will be satisfied from the Company's existing 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 approximately 9,000 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 approximately 44,000
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 transaction the Group's production will rise from
approximately 38,000 bopd to approximately 40,000 bopd. Proven and probable
reserves to be booked will be approximately 3.3 million barrels of oil
Completion, which is subject to the approval of the UK regulatory authorities,
is expected to take place in the first quarter of 2003.
Out-of-court settlement with Repsol
Paladin also announces that it has reached agreement with YPF Indonesia Limited
a wholly owned subsidiary of Repsol S.A., to settle legal proceedings in Dallas,
Texas in which Paladin was alleging breach by YPF of the provisions of an area
of mutual interest clause in the joint operating agreement for the South East
Sumatra Production Sharing Contract. Under the terms of the settlement
agreement, Paladin has received US$9 million from YPF and is in the process of
dismissing the proceedings.
Roy Franklin, Chief Executive of Paladin, commented:
"The acquisition of AGIP's interest in Ross not only consolidates our position
in the field, but also increases our exposure to the potential upside in the
Blake Field through the tariffing arrangements that are in place.
This acquisition and the out-of-court settlement with Repsol complete a very
successful year in Paladin's development."
19 December 2002
Paladin Resources plc Tel: 020 7024 4500
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 38,000 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 announcement does not constitute an offer of securities for sale in any
jurisdiction, including the United States, Canada, Australia, The Republic of
Ireland or Japan. Securities may not be offered or sold in the United States,
Canada, Australia, The Republic of Ireland or Japan absent registration or an
exemption from registration.
This information is provided by RNS
The company news service from the London Stock Exchange