Paladin Resources PLC
20 May 2003
Paladin Resources plc
("Paladin", "the Company" or "the Group")
Completion of the US$153 million Acquisition of a Portfolio of North Sea Assets
from BP and Amerada Hess
Further to the announcement made on 12 December 2002, Paladin is pleased to
announce that its wholly owned subsidiary, Paladin Expro Limited, has completed
the acquisition from BP and Amerada Hess of a portfolio of producing interests
in the Arbroath, Montrose and Arkwright Fields and surrounding acreage including
the Carnoustie and Wood discoveries, located in the UK sector of the North Sea.
Paladin has also assumed operatorship of the fields from today.
The total consideration payable was US$153 million as at the effective date of 1
January 2003. As a result of adjustments for interest, for working capital as at
the effective date, for cash flow movements in respect of the period between the
effective date and completion, and for a deposit of US$15.3 million paid
following shareholder approval in January, the consideration paid on completion
was US$119.4 million, funded by drawdown from existing bank facilities.
Current production from the Arbroath, Montrose and Arkwright Fields is
approximately 19,000 bopd gross (11,200 bopd net). As a result of the
acquisition, Group production is expected to average 45,000 boepd in 2003, an
increase of 55 per cent over that achieved in 2002.
Roy Franklin, Chief Executive of Paladin, commented:
"Completion of this acquisition is a milestone in the development of the
Company. The transfer of operatorship to Paladin has been achieved very
effectively. That has been due, in no small part, to the efforts of our
operating alliance partners, Petrofac and Helix RDS, and to the pragmatic
attitude of BP, the previous operator, and its joint venture partners."
20 May 2003
Paladin Resources plc Tel: 020 7024 4500
Roy A. Franklin, Chief Executive
Cuth McDowell, Commercial Director
College Hill Tel: 020 7457 2020
This information is provided by RNS
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