Paladin acquires Siri, Stine interests in North Sea

Paladin Resources PLC agreed to acquire Enterprise Oil Denmark Ltd. for $35 million plus interest. EODL owns Enterprise Oil PLC's interest in the producing Siri oil field in the Danish North Sea and the nearby Stine discovery.


By the OGJ Online Staff

HOUSTON, Aug. 9 -- Paladin Resources PLC has agreed to acquire Enterprise Oil Denmark Ltd. for $35 million plus interest.

EODL owns Enterprise Oil PLC's interest in the producing Siri oil field in the Danish North Sea and in the nearby Stine discovery.

Enterprise said the Siri interest represents 4 million bbl of reserves and that it produced 5,900 b/d net to Enterprise in the first half. Stine is being developed via an extended reach well from Siri; it will come on stream in September.

Paladin will also assume certain liabilities related to Enterprise's activities in Denmark, said Enterprise.

The deal is subject to the consent of the Danish government and approval of Paladin's shareholders. It is expected to be complete by end September and be effective from July 1.

Pierre Jungels, Enterprise Oil Chief Executive, commented: "We have received a full price for assets that are no longer material to Enterprise. The transaction demonstrates our commitment to extracting value from peripheral assets, and enables us to concentrate our resources on activities with greater long term potential."

Paladin acquired a 20% interest in license 6/95 and a 60% interest in and the operatorship of block 7/98.

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