Paladin Resources PLC
24 May 2005
Paladin Resources plc
("Paladin" or "the Company")
Acquisition of further interests in Block 22/19a, containing the Fiddich
Further to the announcement of April 6 2005, Paladin Resources plc announces
that its wholly owned subsidiary, Paladin Expro Limited, has signed a Sale and
Purchase Agreement with Nippon Oil Exploration and Production U.K. Limited
(NOEPUK), to acquire a 32.59317 per cent operated interest in Licence P.357
(Block 22/19a) in the UK Central North Sea ("the Licence"). The interest to be
acquired is part of an interest which NOEPUK has agreed to acquire from one of
the other P.357 licensees and is being acquired on the same terms pro rata as
the acquisition being made by NOEPUK.
The base consideration is £0.5 million in cash, subject to adjustments for
working capital as at the effective date of 30 November 2004 and for cash flows
in the period between the effective date and completion. In addition to the
base consideration, two conditional payments may be made. On governmental
approval of a field development plan, a payment of £0.6 million will be made and
an additional payment of £0.8 million will be made at the point the project
reaches its break-even point.
Completion of the transaction is expected to take place by the end of the second
quarter of 2005. The acquisition is subject to partners' rights and approvals
and to the consent of the UK regulatory authorities.
Block 22/19a contains the Fiddich gas and condensate discovery, which lies
approximately 20 km to the south east of the Paladin-operated MonArb Fields.
Following completion of this transaction, partner interests in the Licence would
be Paladin Expro Limited (operator) 51.82975 per cent, NOEPUK 38.17025 per cent
and Noble Energy (Europe) Limited 10 per cent.
24 May 2005
Paladin Resources plc Tel: 020 7024 4500
Roy A. Franklin, Chief Executive
Cuth McDowell, Finance Director
College Hill Tel: 020 7457 2020
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