re: PA Resources (PAR.OL - NOK 55) 10% stake in VOLVE field
Ok
looks like PAR.OL bought a 10% stake in the VOLVE offshore Field (Norway Continentnal shelf) and the surrounding acreage for $31m USD. P2 reserves of 7MMBOE net to the company were acquired in the process plus upside from additional leads on the blocks. Looks good !
rgrds
CROSSY
yahoo.reuters.com
Sweden's PA resources gets first N.Sea oil stake
Tue Jun 14, 2005 03:08 AM ET
OSLO, June 14 (Reuters) - Small Swedish oil and gas group PA Resources (PAR.OL: Quote, Profile, Research) said on Tuesday that it was buying a 10 percent stake in a Norwegian North Sea oilfield from France's Total (TOTF.PA: Quote, Profile, Research) for 205 million crowns ($31.53 million).
PA Resources, which operates mainly in Tunisia, said the holding in the Volve field would be its first in the North Sea. Volve is due to start up in 2007 with plateau output of 50,000 barrels per day.
"This is a first, positive and important step in establishing PA Resources on the Norwegian continental shelf and in the North Sea," Ulrik Jansson, chief executive of PA Resources, said in a statement.
Proven and probable reserves at Volve were 70 million barrels of oil, or seven million for PA Resources, it said.
The Swedish company, listed on the Oslo bourse, said there was a "substantial upside potential" in Volve and nearby prospects covered by the purchase price.
The 205 million crowns acquisition implies a cost of 29 crowns ($4.46) per barrel for the basic seven million barrels.
Norwegian oil group Statoil (STL.OL: Quote, Profile, Research) is operator of Volve and won a green light from the Norwegian government in April to develop the field, about 240 km (149.1 miles) west of the port of Stavanger.
Statoil has estimated development and operating costs at about seven billion crowns, including two billion investments.
PA Resources said the purchase would raise its total proven and probable reserves to 38 million barrels of oil equivalents, a rise of 23 percent.
PA Resources shares closed at 55 crowns on the Oslo bourse on Monday, near a 2004 peak of 57 last week and triple a January low of 18.25 in January. |
