re: PA Resources - PAR.OL - Bingo !!
I've been predicting this deal for a long time now. And today they pulled it off. Hats off to Ulrik Jansson (PAR's CEO) and the rest of PA Resources management.
PA Resources sells for an unbelievable low marketcap of $340m USD.. This acquisition will put their daily output above 10.000bopd. Another 5000bopd will accure to the comapny early 2007 with their Volve field stake purchase recently..
Frankly, this puts PA Resources in the premier league of E&P juniors. And this league can handily command USD $1 Billion in marketcap..
stay tuned, you ain't seen nothing yet .. !
newsweb.no
OSLO, NORWAY - 20 JUNE, 2005 - PA RESOURCES MAKES
SUBSTANTIAL ACQUISITION AND TRIPLES PRODUCTION AND RESERVES
PA Resources AB (`PAR`) is pleased to announce the signing
of an agreement to acquire all outstanding ownership
interests in the oilfield Didon and in the exploration
licence Zarat situated offshore Tunisia in the Gulf of
Gabes, including production and other related assets from
the company M.P. Zarat Ltd.
PA Resources already owns 22.22% in Didon and 9.99% in
Zarat and the total ownership after the transaction will
amount to 100% in Didon and minimum 45% in the Zarat
permit. The remaining 55% ownership interest in Zarat is
assumed called and thus owned by the state owned oil
company ETAP. The transaction will imply that PA Resources
will take on the operator ship for the production
activities. Effective date of the transaction is of 1
January 2005.
The acquisition implies that PA Resources production per
day will reach approx. 10 000 BOEPD and the company`s
proven and probable reserves will amount to 118 millions
barrels oil equivalents based on reserve estimate as per
1st January, 2005. The reserves consist of 80 millions oil
and 38 millions oil equivalents of gas.
A development program is in process on the Didon field that
will result in increased production as of 1st quarter
2006. For the Zarat permit, where several discoveries have
been made, 3D seismic is being analysed in order to prepare
an exploration well to be drilled during 2006.
The agreed purchase price is USD 230 million. Of this USD
45 millions are due on signing, USD 60 millions by 18th
August and the remaining part of the purchase price falls
due at final closure of the transaction. The USD 45
millions and the USD 60 millions are structured as loans to
the seller until closure. If PAR fails to meet such payment
deadlines, the seller has the right to demand from PAR an
indemnity of USD 25 millions in total as compensation. The
transaction is conditional upon concession from the
authorities in Tunisia which is expected to be lifted in
September 2005. The acquisition will be financed through a
combination of debt and equity.
Ulrik Jansson, the President of the company, comments:
`The transaction of additional ownership shares in Didon
and Zarat implies that the company - after development of
the Didon field - will have a substantial oil production
and will gain additional reserves for further development
in the Zarat permit.`
PA Resources will now become a considerable company in the
oil business and will be one of the largest oil companies
in the Tunisian market. Through the company`s strong
position in North Africa and through the recent acquisition
on the Norwegian Continental Shelf, the company is well
positioned for future expansion to become a substantial oil
producer.
In connection with this transaction, the company will
invite to an analyst presentation today Monday 20th June,
2005 at 2:00 pm in the Felix Conference center, Aker
Brygge, Oslo.
ABOUT PA RESOURCES AB
PA is an upstream company and operates in the first stage
of the value chain: exploration and production. The
activity is focused at present in north Africa and Tunisia.
The company is listed on the Oslo Stock Exchange on the
Small and Medium sized Business list (SMB) and on the
Nordic Growth Market NGM.
The Company has a strong position as an oil producer in
Tunisia and has and will use this position to expand in
Tunisia and in the nearby region. The company`s remaining
activities are concentrated in Norway and Equatorial Guinea
where the company is engaged in field development and
exploration areas.
PA Resources is today an expansive company with highly
motivated employees in offices in Stockholm, Oslo and Tunis.
Ulrik Jansson
President&CEO
Oslo, 20 June 2005
PA Resources AB
For additional information please contact:
Ulrik Jansson, President&CEO
Tel: +46 707 514 184
E-mail: pa.resources@telia.com
or Trond Bjerkan, VP Tel: +47 22838125
PA Resources AB
www.paresources.se |
