Lasmo Oil Production Stock Payment to be Made in April

The payment on the OPS for the six months ended December 31, 2003 will be made on April 30, 2004 at the rate of 5.4407 pence per unit to holders on the register on April 2, 2004. Payment for the six months ended 30 June 2003 was made at the rate of 4.822 pence per unit.

OPS units were issued in 1976 to help fund the LASMO share of the Ninian field development costs. The Ninian field commenced production on 23 December 1978 and the OPS holders have been receiving half yearly payments for some 20 years. The OPS is governed by the requirements of the Trust Deed, which was issued in August 1976 and payments are subject to audit by independent accountants.

The OPS payment is calculated on 8.75 percent of the sales value of production from 8.62608 percent of the Ninian field after deducting Government royalties, field operating costs (as adjusted for incremental coats associated with tariffing assets) and insurance costs, incurred in connection with the production, conveying and treatment of petroleum won from the field.

The net value is adjusted for OPS units repurchased and cancelled by LASMO and the payment per share is calculated on the number of units currently outstanding (as at 10 October 2003 the number of units outstanding was 5,562,990, the original number of units issued being 7,500,000).

The OPS is repayable at par (10 pence per unit) at the earliest of:
  • the termination of production from the field,
  • the date when the quantity of petroleum won and saved for the field attributable to the OPS interest reaches 120 million barrels, or
  • December 31, 2010.
  • At December 31, 2003 cumulative production from the Ninian field attributable to the OPS interest amounted to 100.2 million barrels (30 June 2003: 99.8 million barrels). Production attributable to the OPS interest for the 6 months ended 31 December 2003 was 437,090 barrels (6 months ended 30 June 2003: 468,010 barrels).

    The license interest in License P.199 Block 3/8a in the North Sea (which includes the Ninian field), was sold to Agip Oil Britain Limited (formerly known as Sun Oil Britain Limited, since liquidated and whose assets are held by Eni UK Limited) and Ranger Oil (U.K.) Limited in 1994. However, as far as holders of the OPS are concerned, the terms and conditions governing the OPS remain unchanged.