oilbarrel.com 20/07/2004

Paladin Makes It Three-Out-Of-Three In Tunisia With Dalia-1 Oil Strike
Think of Paladin and you tend to think low-cost satellite tie-ins in the North Sea. But in recent years the company has also quietly built up a position in Tunisia where new discoveries can be hooked up and put into production in a matter of weeks.

The companys latest success in the North Africa country came last week when it announced the test results from the Eni-operated Dalia-1 exploration well in the Adam Concession, southern Tunisia. The partners in the project, should Tunisian state oil firm Etap decide to participate, include Paladin (7 per cent), Etap (30 per cent), Eni (operator, 35 per cent) and Pioneer Natural Resources (28 per cent).

The well, the partners third successive discovery in the country, flowed at 3,600 barrels of per day (bpd) of 44-degree API oil during testing. Dalia-1 encountered several oil and gas bearing zones throughout the Acacus A and Tannezuft sandstones at a depth of 3,400 metres.

The well has now been completed and suspended as a producer pending approval of the field development plan and hook up to existing processing and export facilities some 13 km away at Enis Oued Zar oilfield. The Dalia deposit could be onstream within a matter of weeks, Paladin said in a statement.

Chief executive Roy Franklin also pointed out that the partners are in ongoing negotiations to allow commercial gas production to start flowing from the concession later this year.

The previous exploration well on the concession, Hawa-1, which was discovered at the end of 2003 and in production three months later in March 2004, produced significant quantities of gas during testing. The well, which is now pumping some 5,000 bpd, flowed 14.3 million cubic of gas per day plus 1,000 bpd of condensates during testing in addition to the 6,200 bpd of oil.

The partners first well on the concession, Adam-1, was discovered in September 2002 and is today pumping some 4,000 bpd.

The latest exploration success in Tunisia follows on from Paladins first operated exploration well in the UK sector of the North Sea, which last month came in as an oil discovery. Well 22/23a-7 on the Brechin prospect, some 3.5 km to the east of Paladins Arkwright field, encountered 110 ft of oil-bearing sands in the Palaeocene Forties formation. The well was suspended as a potential future producer and the British oil firm hopes to fast-track its development and tie the new oil pool into the Arkwright infrastructure. Franklin said last month that the incremental production stream through the companys existing facilities would result in high value barrels.

Paladin Resources PLC
26 July 2004



Paladin Resources plc

('Paladin' or 'the Company')



New US$600 Million Corporate Credit Facility



Paladin announces that it has signed a US$600 million five year Senior Secured
Revolving Credit Facility with a syndicate of sixteen major international oil
and gas lending banks led by J.P.Morgan plc.



Given the Company's recent and projected future growth, the market was initially
approached for a US$500 million facility, which was increased to US$600 million
following a strong reception to the transaction in the banking market. The
facility will be used for general corporate purposes, including the funding of
the Company's active capital investment programme to enhance production from its
existing assets, the financing of future acquisitions, and the refinancing of
existing indebtedness.



Roy Franklin, Chief Executive of Paladin, commented:



'Paladin is entering into a new phase of organic growth through active
investment in our recently acquired assets. This new facility puts the Company
in excellent shape to fund that investment programme and provide headroom for
further acquisitions. I am delighted with the level of support shown by all of
the banks in our enlarged syndicate.'




26 July 2004



ENQUIRIES


Paladin Resources plc Tel: 020 7024 4500
Roy A. Franklin, Chief Executive

College Hill Tel: 020 7457 2020
James Henderson
Nick Elwes

The Sunday Telegraph says news of Paladin Resources (LSE: PLR.L - news) ' credit facility, combined with an extensive drilling programme, is likely to drive the shares forward. Keep buying, says the paper.

Sunday Telegraph

The Equity View:

*BAE (LSE: BA.L - news - msgs) is a risky buy.

*Buy Vantis at 130.5p.

*Keep buying Paladin Resources (LSE: PLR.L - news) at 121.25p.

*Buy Polaron at 182.5p.

*Sell Cable & Wireless .

*Keep selling MFI Furniture (LSE: MFI.L - news) .

seawallwalker, are u a holder?

Hello proptarde.

Long time, (seems), no speak!

Yep.

Patience is needed at the moment with this one.

Plenty of spikes and troughs but the trend is generally up.

Holding like SEY for long term.

I also like PRE but this is an in and out.

Did you see their last news?

I expect a leap there in a couple of weeks if things go well.

I see Fidelity have been selling some of their holding (RNS today).

Big Al

Yes I saw that.

You sold yours just after that. I nearly did the same but will hold.

Franklin increased their stake last week, so when one gives one takes away.

I am going to run long term with these an d see what happens.

Plus with the positive press over the weekend, it adds up to me.

latest last update
Platts Brent Spot Intraday Indication $39.49 27/07/04
NYMEX Henry-hub gas $5.957 26/07/04

Brent is going off the scale by the looks of things, this always depresses the Oil Stocks. Kind of a reverse psycology that seems to happen with that and record profits.

Paladin are doing reasonably well and I expect a bounce from todays level.

agreed. i have had this stock on watch since its name came up in referrence to an aussie takeover situation (PRE did not get involved).

since then i have followed the price. seems a pretty solid name. I am happy with SEY but am always on the lookout for more quality.

rgds

Well, as predicted, it is moving up.

More yet please.

Russian Government take note:- Stop all producers selling oil for about 4 weeks, then I can sell at a huge profit, and so can you!

Go on, you know it makes sense!

latest last update
Platts Brent Spot Intraday Indication $39.49 27/07/04
NYMEX Henry-hub gas $5.989 27/07/04

Now that is a nice high price, but more yet please.

Oil price is for closing yesterday, still going up today.

So is PLR.

WTI hit all-time high earlier.

PLR coming back today. Coming up to meet my line it broke. Want to see if it gets past or reverses. I've been astonished at the price moves in recent weeks. Must be the worst performer in the sector.

Agreed.

Against the odds in my opinion.

Plenty of room for growth though.

I have time................................................................................................................................................................................................................

..........................................................

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

Woha

did I drop off????

More like it PLR.

Up and up hey?

Anyone who came in at 121p is feeling pretty smug now.

I wish that were me!

:)

How about someone who stopped out at 120p?

Oh well. ;-))

Well!!!!!!!!!!!!!!!!!!!!!

We can't see the future, but this was a longer play for me when I went in and I can wait so things are different for all I think.

I hope that the results from BP and Shell are enough to move it on a bit now for a while.

Both the majors are under priced compared to the recent hikes in oil, which do not seem to be getting much cheaper in the short term, maybe never.

Oil & Gas are a must in any portfolio I think, but I will let you know if I ever become filthy rich because of my thoughs.

So far I still eat cheese in the local parish church, so my strategy has not been foolproof.

I hold PRE as well just lately bought at it's low with results from a gas column to come in 5 to 6 weeks, described as lucrative by the ceo. When and if I make money it may well be lots and all at the same time but a way off imho.

At least 6 weeks.

I can wait.


RTO looks like a chancey buy at 143p, if the new acting ceo breaks down the company.

May also be a few weeks off though.

sw - I might be back!

Have been tempted to re-enter throughout the day, but will watch a few days.

Up to a profit at last!!!!

Now do the same for a week!!

Big Al.

DisgrCEFUL TYPOS, SORRY!

aLL CORRECTED i HOPE.


dAMN now I hit the casp lokcv

It is reversing the down trend, watching for afew quid

imho

sw - went short late at 130.5p. Purely a trade based on L2.

Big Al

Okay, we will see what the morrow brings.

I see oil has dropped a few cents, enough to make mm happy again probably.

I want to part with this punt, but I want a decent profit first.

Speak later.

sw - just took advantage of something I saw on L2. Will look to close early one way or the other.

;-)

No worries.

Investors Chronicle says Sell Paladin!

The company's strengths are beyond dispute. It's the valuation that we have more trouble with.


BEAR POINTS
Rating hard to justify
Acquisition opportunities are thin on the ground
Difficult to find sensibly-priced oil
High taxation

BULL POINTS
Profits sensitive to high oil price
Management's track record

sw - covered for +2.5

Butted out -1.5.

Another opportunity will come my way.

apple

If IC says sell, it's usually a raging buy! ;-)

sw - you did better than me! ;-)

Yes but it should have been better.

Oh well better luck next time and all that.

Apparently, I'll be on one of their wells shortly. Hmm.

Big Al

I was considering it but now I think that I'll keep watching it for a while.

Bit of ISD afterwards????

LOL

sw - I've done some work for them already in the UK sector. I was impressed and have worked with some of their new people before with other small outfits. Very incestuous I know, but that's the way these things are.

I'm not brilliant at fundamentals, but they've picked up some decent stuff to redevelop IMO and have ambitions to pick up more. Tunisia looks very good too.

apple - always good to wait and watch. It's never to late to jump on a good one! ;-))

Good luck there.

I am in total agreement with you.

Best

Nexen the Canadian Oil Company, are interested in buying assets, with a similar portfolio to Paladin.

I have not seen this repeated but it was a news story in the Times or Telegraph on Sunday.

I will pull it out and report in on this thread.

Here it is. I am not reproducing all as it goes on a bit.

Sunday Times Business Suppliment page 3.

Canadian oil giant eyes North Sea minnows.

Nexen, the 2.5 billion Canadian oil, gas and chemical company has appointed Bank of Ameriica to investigate opportunities for the business to expand into the British North Sea, writes Lucinda Kenneny.
The company which employs almost 3000 staff in Western Canada and the Gulf of meico, Yemen, Australia and Nigeria, is keen to join it's peers including Petro Canada in opening a British Operation.
(Edited here)
Rumors have already pinpointed Venture Produstion and Paladin Resources as potential targets.
(More edits)

If I get a chance later I will reproduce a bit more on this item here, but it is very interesting none the less.

For you guys : press mention which will appear in tomorrow's Daily Mail Newspaper.

Market report: Tuesday close
Mickey Clark, Evening Standard
10 August 2004


Paladin Resources, steady on 126p, traded near their highs following speculation that either could be taken out by Canadian energy company Nexen.


It has appointed Bank of America to investigate opportunities in the North Sea after inviting bankers to Canada last month and is thought to have a war chest of 400m.


Nexen did talk to Venture earlier this summer, but may now look to snap up individual fields in the North Sea instead.


Meanwhile, Caledonia Investments ( up 8p at 1016p) has sold 4.5m shares (1.39%) of Paladin reducing its stake to 30.4m (9.41%) and retains an interest in a further 33m (10.2%).

http://www.thisismoney.com/20040810/nm81256.html

Sue Helen

Thank you as always for your research.

x

http://www.paladinresources.plc.uk/uploads/50031.pdf

Record results:
- Cash flow from operations increased 20 per cent to 171.9 million (2003: 143.1 million)
- Pre-tax profit increased 29 per cent to 109.7 million (2003: 84.8 million)
- Profit after tax increased 26 per cent to 35.8 million (2003: 28.4 million)
- Earnings per share increased 24 per cent to 11.06 pence (2003: 8.92 pence)
- Proposed final dividend of 1.14 pence per share to give a total for the year of 1.7 pence per share
(2003: 1.575 pence per share), an increase of 8 per cent