PA Resources increases its portfolio with the acquisition of Scotsdale Ltd. for less than 1.5% of its total market cap. The consolidation of financial accounts will take place during the fourth quarter 2007 and is estimated to give a marginal negative effect on the profit per share during 2007.
PA Resources increases its presences in the North Sea with this acquisition due to Scotsdale's stout portfolio of acreage offshore in the United Kingdom and Denmark. The company operates a total of 10 licenses covering 16 blocks in the North Sea and is a joint venture partner in a license in the East Irish Sea. Eight of the licenses are situated in British waters and two block licenses at the Danish part of the North Sea. In addition, Scotsdale has applied for acreage with existing discoveries offshore Netherlands. The unrisked resources for the Scotsdale share of the portfolio are appraised at approximately 270 Million barrels of oil equivalents.
Scottsdale’s licenses offer PA Resources a number of near term drilling opportunities as well as longer-term development of interesting exploration areas.
"PA Resources is excited by this new opportunity to participate in the exploration in the British and Danish offshore sectors. This acquisition, together with our Norwegian portfolio of licenses, demonstrates PA Resources’ ambition to grow and expend our operations in the North Sea." says Ulrik Jansson President and CEO of PA Resources AB.
Scotsdale management team will continue in place and will concentrate on developing the existing prospects for drilling in 2008-2009 as well as further portfolio growth.