Paladin Resources PLC
16 January 2004
Paladin Resources plc
US$10 Million Acquisition of Interests in Blane and Enoch Fields
Paladin Resources plc announces that its wholly owned subsidiary, Paladin Expro
Limited ("Paladin"), has signed a Sale and Purchase Agreement with Enterprise
Oil Limited and Enterprise Oil U.K. Limited, both part of the Royal Dutch/Shell
Group of Companies, to acquire their operated interests in the Blane and Enoch
oil fields in the UK Central North Sea.
The consideration is US$10 million in cash, subject to adjustments for working
capital as at the effective date of 1 July 2003 and for cash flows in the period
between the effective date and completion, which is expected to take place by
the end of the first quarter of 2004. The consideration will be satisfied from
existing bank facilities.
Under the agreement, Paladin will acquire the following interests:
A 30.4893 per cent interest in Block 30/3a (Upper) (above the top of the
Cretaceous Danian/Ekofisk Layer), which lies adjacent to the UK/Norwegian median
line. This block contains the greater part of the Blane Field, a 1989 oil
discovery in Palaeocene Forties sandstones which extends from UK Block 30/3a
into Norwegian Block N1/2. The Company's wholly-owned Norwegian subsidiary holds
a 65 per cent interest in, and is the operator of, Block N1/2.
A 30 per cent interest in Block 16/13a, which lies immediately to the south-east
of the Brae and Miller Fields adjacent to the UK/Norwegian median line. This
block contains the Enoch and J1 hydrocarbon discoveries. Enoch is a 1985 oil and
gas discovery in Palaeocene sandstones, and J1 is a 1984 gas condensate
discovery in Middle Jurassic sandstones.
A 41.08 per cent interest in Block 22/16a, which lies immediately to the west of
Paladin's Montrose and Arbroath Fields.
The acquisition and transfer of operatorship to Paladin are subject to partners'
rights and approvals, and to the consent of the UK regulatory authorities.
Roy Franklin, Chief Executive of Paladin Resources plc, commented:
"Blane is an attractive light oil discovery in a good quality Palaeocene
reservoir with a number of alternative development options, including subsea
tieback to either existing UK or Norwegian infrastructure. Without its median
line issues this is a discovery that, in all likelihood, would already have been
developed. The planned new Framework Treaty for cross-border activity, combined
with our involvement on both sides of the median line, presents the Company with
an attractive development opportunity.
Enoch has similar appeal as a potential satellite development, whilst
acquisition of an interest in Block 22/16a consolidates our acreage position
around the Montrose and Arbroath Fields."
16 January 2004
Paladin Resources plc Tel: 020 7024 4500
Roy A. Franklin, Chief Executive
Cuth McDowell, Finance Director
College Hill Tel: 020 7457 2020
This information is provided by RNS
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