Paladin Acquires Stake in Timor Sea Exploration Permit from Santos
Paladin has signed a Share Sale Agreement with Santos, under the terms of which Paladin Australia will acquire from Santos its wholly owned subsidiary, Santos (JPDA 91-01) Pty Ltd. This company holds a 25 per cent interest in PSC 03-01 which lies in the Joint Petroleum Development Area between Australia and Timor Leste, immediately to the east of the Laminaria and Corallina Fields in which Paladin holds interests of 40.1 per cent and 33.33 per cent respectively.
The consideration is the issue of 3.5 million Paladin shares to Santos and, in addition, the reimbursement of Santos' expenditure on the PSC between the effective date of 1 July 2005 and completion, which is expected to take place in the near future. An additional payment of US$3 million in cash would be payable to Santos in certain circumstances following any oilfield development in the PSC area.
Within the PSC area, there are several existing oil discoveries, notably the Jahal and Kuda Tasi discoveries, with the potential to be developed as satellites to the Northern Endeavour FPSO, in which Paladin Australia has a 33.33 per cent interest as a result of its stake in the Corallina Field. A 3D seismic grid is shortly to be acquired over these discoveries and also over the more prospective parts of the PSC area.
Woodside Energy Ltd. is the operator of both the Laminaria and Corallina Fields and the PSC.
Roy Franklin, Chief Executive of Paladin, commented:
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