Paladin Resources PLC
16 May 2003
PALADIN RESOURCES plc
The following statement was made by Paladin's Chairman, Malcolm Gourlay, at the
Company's Annual General Meeting held today:
"2002 was an excellent year for Paladin with another set of record operating and
financial results and substantial progress made in the Company's development. I
am pleased to report that this performance is continuing into 2003.
We now have all the necessary regulatory and partner approvals for the proposed
acquisition of BP's and Amerada's interests in the Montrose, Arbroath and
Arkwright Fields and related acreage in the UK sector of the North Sea which we
announced in December. We intend to complete the transactions next week when
Paladin will also assume its first significant operatorship. The transfer of
operatorship has been achieved very efficiently, and on behalf of shareholders,
I would like to thank all those involved for their considerable efforts without
which this could not have happened. I would also like to thank shareholders for
their support for the £42 million placing and open offer to part-finance this
acquisition which was successfully completed in January 2003.
Production in the first four months of the year from existing Paladin assets has
been approximately 36,000 barrels of oil equivalent per day, in line with our
budget expectations. For the balance of 2003, Group production will be enhanced
not only by the acquired BP/Amerada interests, but also by production from a
significant infill well on the Njord Field in Norway (Paladin 15 per cent) which
will be brought on stream in the near future, and a recently completed second
producer well on the Stine 2 Field in Denmark (Paladin 30 per cent).
On the basis of the above, we would expect full year production for 2003 to
average approximately 45,000 barrels of oil equivalent per day, an increase of
55 per cent over that achieved in 2002.
Development projects in the Group's portfolio are also making good progress. In
the UK, the development of the Goldeneye Field (Paladin 7.5 per cent) and the
flank of the Blake Field (Paladin 2.4 per cent) are both proceeding to plan, and
in the Ross Field (Paladin 30.82 per cent) a further production well is
scheduled to spud in June to drain the north-eastern part of the field.
In Denmark, development of the Stine 1 Field (Paladin 30 per cent) is on track
for first production in late 2003. The Nini and Cecilie Fields which are being
developed as satellites to the Siri production platform are now scheduled to
come on stream in September. Although Paladin has no direct stake in these two
fields, the Company will benefit from their development through the sharing of
Siri operating costs and the receipt of tariff income.
As announced yesterday, I am also pleased to report that exploration well Sofie
1, in which Paladin has a 30 per cent interest and which was drilled
approximately 20 km to the north east of the Siri Field, is an oil discovery.
Preliminary analysis would suggest that the discovery can be developed as a
satellite to the Siri Field; further work will be required to confirm its
In Tunisia, a production concession around the Adam 1 Field in which Paladin has
a 7 per cent interest has recently been approved, and the field will be brought
on stream in the near future. A second Adam well will be drilled in June to be
followed by an exploration well on a separate prospect.
Paladin's strategy is to grow through both acquisition and exploration with the
objective of securing reserves and production on a commercially attractive
basis. Not only is there
significant investment within Paladin's existing portfolio, but the asset
trading market also remains active. As a result I am confident that there will
be further opportunities to acquire assets in the year ahead that will
contribute to the further development of the Group for the benefit of
In summary, while oil prices will, as always, have an effect on earnings, 2003
promises to be another good year for Paladin and its shareholders.
16 May 2003
Paladin Resources plc Tel: 020 7024 4500
College Hill Tel: 020 7457 2020
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