Paladin Resources PLC
17 January 2005
PALADIN RESOURCES plc
("Paladin" or "the Group")
Completion of US$150 million Production Acquisition in Timor Sea,
offshore north-western Australia
Further to the announcement made on 13 November 2004, Paladin is pleased to
announce that its wholly owned subsidiary, Paladin Oil & Gas (Australia) Pty
Limited, having received all necessary partner and regulatory approvals in
December, has completed the acquisition of BHP Billiton's interests in the
Laminaria and Corallina Fields and the Northern Endeavour FPSO, located in the
Timor Sea, offshore north-western Australia.
The purchase price as at the effective date of 1 July 2004 was US$150 million.
As a result of adjustments for working capital, for cash flow movements in
respect of the period between 1 July 2004 and completion, and for a deposit of
US$15 million paid on signature of the Sale and Purchase Agreement, the
consideration paid on completion was US$115 million funded by drawdown from
existing bank facilities.
The acquisition of the Laminaria and Corallina interests has added approximately
13 million barrels of proven and probable reserves to the Group's reserves base
and is expected to contribute some 6,000 barrels of oil per day to Group
production in 2005. Capital investment plans for 2005 include the drilling of an
infill development well in the Laminaria Field in mid-year.
Roy Franklin, Chief Executive of Paladin, commented:
"As our first deal in Australia, this acquisition offers the ideal combination
of established near-term production and incremental investment opportunities
which are material in a Group context. We look forward to working with our joint
venture partners in realising the upside potential of these two fields."
17 January 2005
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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