Talisman acquiring Paladin Resources

Oct. 21, 2005
A subsidiary of Calgary independent Talisman Energy Inc. agreed to acquire British producer Paladin Resources PLC for $2.5 billion (Can.).

By OGJ editors
HOUSTON, Oct. 21 -- A subsidiary of Calgary independent Talisman Energy Inc. agreed to acquire British producer Paladin Resources PLC for $2.5 billion (Can.).

Talisman Energy Resources Ltd. plans to invest more than $1 billion on Paladin acreage during 3 years and believes it can raise Paladin production to more than 70,000 boe/d from the current 46,000 boe/d.

Paladin has producing interests in the Norwegian, UK, and Danish sectors of the North Sea, as well as in Australia, Indonesia, and Tunisia. It also has exploration acreage in Gabon and Romania.

Talisman estimates Paladin's proved plus probable reserves at 190 million boe. Of Paladin's production, 37% is in the Norwegian North Sea, 33% in the UK North Sea, and 7% in the Danish North Sea. The acquisition will provide Talisman with 600,000 net acres of Norwegian exploration acreage.

Jim W. Buckee, Talisman president and chief executive officer, said the two companies have overlapping interests in Norway's Egersund basin in Production License 316, of which Paladin holds 40% interest and is the operator. Talisman holds 30% interest.

In the UK, Paladin operates and has a 58.97% interest in the MonArb area, which includes Montrose oil field, three satellite oil fields, a satellite development, and a number of exploration prospects. In Denmark, Paladin has a nonoperated interest in Siri oil field.