Paladin acquire North Sea interests from Shell
Paladin Resources plc has announced 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 iscoveries. 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.
Added to site on 20/01/04