Enterprise Oil Sells Danish Assets to Paladin

Enterprise Oil has reached agreement with Paladin Resources plc for the sale of its wholly-owned subsidiary Enterprise Oil Denmark Ltd ('EODL') for $35 million plus interest. EODL interests included in the deal are the producing Siri oil field and the nearby Stine discovery. In addition, Paladin will also assume certain liabilities associated with Enterprise's activities in Denmark.

The transaction is effective from July 1, 2001, and is subject to the consent of the Danish Government and the approval of Paladin's shareholders. Completion is expected to take place at the end of September.

The Siri field interest represented reserves of 4 million barrels and produced 5,900 barrels of oil per day net to Enterprise in the first half of 2001.