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Paladin Resources PLCIn late 2004, Paladin bought BHP Billiton's share of the Laminaria/Corallina oil field, just outside the western edge of the JPDA in the Timor Sea. This page includes media articles, as well information and press releases from Paladin.
On 11 March 2005, Paladin increased its share of Laminaria-Corallina by buying Shell's portion of two contracts. Less than two weeks later, Paladin made a farm-in agreement with Woodside for additional areas around Laminaria-Corallina, further increasing its ownership.
Paladin a haven in volatile industryThe Telegraph (UK), Money, The Questor column 18 January 2005 There's nothing wrong with using other people's leftovers just ask Paladin Resources. The oil producer specialises in squeezing the last drops out of fields other companies have already given up on. A North Sea specialist, Paladin is in the process of rebalancing its portfolio. Yesterday, it took a sticky step forward by completing the purchase of BHP Billiton's interests in fields in the Timor Sea off Australia. It is also selling interests in two fields in the North Sea. It's a strategy that has already paid dividends. Paladin was the third biggest climber in the FTSE 250 last year, when the shares more than doubled. Clearing out the dregs of other's oil is becoming increasingly sophisticated and Paladin reckons it will more than double production by 2008. Now Paladin will have to prove itself in unfamiliar waters. The Timor deal was its first big acquisition outside the North Sea other than an early foray into Indonesia. At $150m (£81m), some said it was a full price. More acquisitions are planned in the region. Bearish news emerged yesterday as Paladin said production levels for 2004 were lower than anticipated 41,500 barrels of oil equivalent a day compared with the expected 43,000-46,000. This year, however, it is expected to be 20pc higher. The shares fell 7 to 175p, trading on about 16 times forecast earnings with a prospective yield of 1pc. The shares are unlikely to repeat last year's surge but Paladin offers a comparatively safe exposure to a volatile industry.
From Paladin's website:
Paladin acquired its interests in the above fields from BHP Billiton in January 2005, with an effective date of 1 July 2004. The fields are operated by Woodside Energy Ltd. The Laminaria and Corallina oilfields, discovered in 1994 and 1995 respectively, are located in the Timor Sea approximately 550km WNW of Darwin in water depths of ca. 360-410 metres. The oil reservoir in both fields is the Jurassic Callovian Laminaria sandstones. The fields were developed jointly by subsea production wells tied back to the purpose-built Northern Endeavour FPSO and brought on-stream in late 1999. Peak production from the Jurassic reservoir sands was 180,000 barrels of oil per day in early 2000. The fields have been developed with 8 production wells, 6 on Laminaria and 2 on Corallina with one gas injection well. The fields are in natural decline, averaging 28,700 barrels of oil per day gross in 2004 The crude oil from both fields is light, 58o API gravity, and of high quality. Paladin’s net share of production in 2005 is estimated to reach 6,000 barrels of oil per day. Paladin’s net share of proven and probable remaining reserves at 1 January 2005 is estimated at 13 million barrels of oil. The drilling of a further infill development well in the Laminaria field is planned for mid 2005. Further exploration opportunities exist in the area and any discoveries could be tied back to the Northern Endeavour FPSO. Interests in the licences and fields are as follows:
US$150 million Production Acquisition in Timor Sea, offshore northwestern Australia PALADIN Press Release, 13 November 2004 Paladin announces that it and its wholly-owned subsidiary, Paladin Oil & Gas (Australia) Pty Ltd. (“Paladin Australia”), have signed a Sale and Purchase Agreement with BHP Billiton Petroleum (North West Shelf) Pty Ltd. (BHP Billiton) under the terms of which Paladin Australia will acquire BHP Billiton’s 32.6125 per cent fixed unitised interest in the Laminaria Field and its 25 per cent interests in the Corallina Field and the Northern Endeavour floating production, storage and offloading vessel (“FPSO”). The purchase price is US$150 million in cash effective as at 1 July 2004 and is subject to adjustments for working capital and cash flow movements between 1 July 2004 and completion, which is expected to take place in early 2005. The consideration will be satisfied from the Company’s existing bank facilities. The acquisition of these interests is expected to contribute some 6,000 barrels of oil per day to Group production in 2005, and to contribute some 13 million barrels of proven and probable reserves to the Group’s reserve base at completion, with the potential for material upside from a programme of infill drilling in future years. The Laminaria and Corallina Fields are located in the Timor Sea approximately 550 km WNW of Darwin in water depths of ca. 350-400 metres. Discovered in 1994 and 1995 respectively, the fields were developed jointly by subsea production wells tied back to the purpose-built Northern Endeavour FPSO and brought on-stream in late 1999. Peak production of 180,000 barrels of oil per day was reached in early 2000, since when the fields have been in natural decline, averaging 30,900 barrels of oil per day gross in 2004 year-to-date (net to BHP Billiton interest 8,500 barrels of oil per day). The crude oil from both fields is light and of high quality. Joint venture partners in the fields are Woodside Energy Ltd. (operator) and Shell Development (Australia) Proprietary Limited. The acquisition is subject to partners’ pre-emptive rights and to the approval of the Australian regulatory authorities. Roy Franklin, Chief Executive of Paladin, commented:
ENQUIRIES: Paladin Resources plc Tel: 020 7024 4500 College Hill Tel: 020 7457 2020. Jim Joseph
Completion of US$150 million Production Acquisition in Timor Sea, offshore north-western Australia Paladin press release, 17 January 2005 Further to the announcement made on 13 November 2004, Paladin is pleased to announce that its wholly owned subsidiary, Paladin Oil & Gas (Australia) Pty Limited, having received all necessary partner and regulatory approvals in December, has completed the acquisition of BHP Billiton’s interests in the Laminaria and Corallina Fields and the Northern Endeavour FPSO, located in the Timor Sea, offshore north-western Australia. The purchase price as at the effective date of 1 July 2004 was US$150 million. As a result of adjustments for working capital, for cash flow movements in respect of the period between 1 July 2004 and completion, and for a deposit of US$15 million paid on signature of the Sale and Purchase Agreement, the consideration paid on completion was US$115 million funded by drawdown from existing bank facilities. The acquisition of the Laminaria and Corallina interests has added approximately 13 million barrels of proven and probable reserves to the Group’s reserves base and is expected to contribute some 6,000 barrels of oil per day to Group production in 2005. Capital investment plans for 2005 include the drilling of an infill development well in the Laminaria Field in mid-year. Roy Franklin, Chief Executive of Paladin, commented:
ENQUIRIES: Paladin Resources plc Tel: 020 7024 4500 College Hill Tel: 020 7457 2020. Jim Joseph
Acquisition of Additional Interests in the Laminaria and Corallina Fields, Offshore Northwestern Australia Paladin press release, 11 March 2005 Paladin announces that it and its wholly-owned subsidiary, Paladin Oil & Gas (Australia) Pty Limited (“Paladin Australia”), have signed a Sale and Purchase Agreement with Shell Development (Australia) Pty Ltd. (“Shell”), under the terms of which Paladin Australia will acquire from Shell an 8.33 per cent interest in Production Licence AC/L5. As a result, Paladin’s fixed unitised interest in the Laminaria Field will rise from 32.6 per cent to 40.1 per cent and its interest in the Corallina Field and the Northern Endeavour floating production, storage and off-loading vessel (“FPSO”) The purchase price is US$46.87 million in cash effective as at 1 July 2004, and is subject to adjustments for working capital and cash flow movements between 1 July 2004 and completion, which is expected to take place by April 2005. The transaction is subject to the approval of the Australian regulatory authorities. Woodside Energy Ltd., the other joint venture partner and operator of the Laminaria and Corallina Fields, has announced that it has signed an agreement to purchase the balance of Shell’s interests in the two fields. The Laminaria and Corallina Fields are located in the Timor Sea approximately 550 km WNW of Darwin in water depths of ca. 350-400 metres. Discovered in 1994 and 1995 respectively, the fields were developed jointly by subsea production wells tied back to the purpose-built Northern Endeavour FPSO and brought on-stream in late 1999. Peak production of 180,000 barrels of oil per day was reached in early 2000, since when the fields have been in natural decline, averaging approximately 31,000 barrels of oil per day gross in 2004. The crude oil from both fields is light and of high quality. Paladin acquired its initial interests in both fields from BHP Billiton Petroleum (North West Shelf) Pty Ltd. in a transaction which completed in January 2005. The acquisition of these additional interests is expected to add some 1,250 barrels of oil per day to annualised Group production in 2005, and to contribute some 3 million barrels of proven and probable reserves to the Group’s reserve base at completion, with the potential for material upside. An infill well is planned on the Laminaria Field in the second quarter of 2005 and an exploration well in the AC/P8 permit later in the year. Ownership changes as a result of the transactions are as follows:
Roy Franklin, Chief Executive of Paladin, commented:
ENQUIRIES: Paladin Resources plc Tel: 020 7024 4500 College Hill Tel: 020 7457 2020.
Farm-in to AC/P8 exploration permit, offshore north-western Australia Paladin press release, 24 March 2005 Paladin Resources plc announces that its wholly owned subsidiary, Paladin Oil & Gas (Australia) Pty Limited, has entered into a farm-in agreement with Woodside Energy Ltd. (“Woodside”), under the terms of which Paladin will earn an 18.33 per cent working interest in the AC/P8 exploration permit, offshore north-western Australia. This follows the recently announced acquisition by the Company of a 15 per cent interest in the AC/P8 permit as part of the acquisition of Shell Development (Australia) Pty Ltd’s Greater Laminaria area interests. The AC/P8 exploration permit lies adjacent to the Laminaria and Corallina Fields, has an area of 604km2 and is located in the Timor Sea approximately 550km WNW of Darwin in water depths of ca. 350-400 metres. An exploration well in the AC/P8 permit to test the North Petalonia prospect is planned to be drilled during the second quarter of 2005. Following completion of the farm-in, which is subject to the approval of the Australian regulatory authorities, interests in the permit will be Woodside (operator) 66.67 per cent and Paladin 33.33 per cent. Completion is expected to take place during the second quarter of 2005. Roy Franklin, Chief Executive of Paladin, commented:
ENQUIRIES: Paladin Resources plc Tel: 020 7024 4500 College Hill Tel: 020 7457 2020
On 18 May 2005 Paladin’s Chairman Malcolm Gourlay told the company’s Annual General Meeting:
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The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk) |
