Paladin Resources subsidiary Paladin Expro Ltd. will purchase $10 million in interest from Enterprise Oil Ltd. and Enterprise Oil UK Ltd., both part of the Royal Dutch/Shell Group of Companies, for their operated interests in the Blane and Enoch oil fields in the UK Central North Sea. The deal is expected to be complete by the end of 1Q 2004.
Under the agreement, Paladin will acquire a 30.5% interest in block 30/3a, which lies adjacent to the UK/Norwegian median line. This block contains the greater part of the Blane field, which extends from UK block 30/3a into Norwegian block N1/2. The company's wholly-owned Norwegian subsidiary holds a 65% interest in, and operates, block N1/2.
Paladin also will acquire a 30% interest in block 16/13a, which is southeast of the Brae and Miller fields, adjacent to the UK/Norwegian median line. This block contains the Enoch and J1 hydrocarbon discoveries.
The company will also acquire a 41.1% interest in block 22/16a, which is west of Paladin's Montrose and Arbroath fields.
"Blane is an attractive light oil discovery in a good quality Palaeocene reservoir with a number of alternative development options, including subsea tieback to either existing UK or Norwegian infrastructure," Roy Franklin, CEO of Paladin Resources, said. "Without its median line issues this is a discovery that, in all likelihood, would already have been developed."