Phillips Sells Interest in Siri Field
Paladin announces that it has signed an Assignment Agreement to acquire from Phillips Petroleum International Corporation Denmark a further 5.263 percent interest in Danish Licence 6/95, which contains the producing Siri Field and the Stine oil discoveries, increasing the Company's interest in License 6/95 to 25.263 percent.
The basic consideration is 35.8 million Norwegian Kroner in cash as at the effective date of December 31, 2001, subject to adjustments for cash flows and interest between the effective date and completion. Completion is expected to occur in early January 2002. The consideration will be met from existing bank facilities.
Current production from the Siri Field and the Stine Segment 2 oil accumulation totals approximately 42,000 barrels of oil equivalent per day. Development plans for the Stine Segment 1 oil discovery to be tied back as a satellite to the Siri Field are under active consideration.
Paladin acquired the right to purchase the Phillips Interest on the acquisition of Enterprise Oil Denmark Limited in September 2001. Completion is subject to the approval of the Danish Energy Agency.
Roy Franklin, Chief Executive of Paladin, commented: "The performance, to date, of both Siri and Stine has exceeded our original expectations - we are optimistic that this performance will continue and on that basis are delighted with this acquisition."