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Friday, 29 August, 2008, 01:40 GMT | more prices >>

Noreco lunges at Talisman Oil Denmark



By Upstream staff 

Norwegian player Noreco has entered a share sale agreement with Paladin Resources to buy Talisman Oil Denmark for $83 million in a deal that will boost the outfit’s daily production by more than 20%.

The deal with Talisman Energy offshoot Paladin includes the producing Siri field in the Danish sector of the North Sea and will add more than 4.35 million barrels of oil to Noreco’s proven and probable reserves.

Noreco said it would fund the deal via a private placement of between Nkr 300 million ($58.9 million) and Nkr 450 million, where the minimum amount has been guaranteed.

The price will be determined through a book-building process where a minimum subscription price is set at Nkr 22.25 per share.

Talisman Oil Denmark’s interest in the Danish sector of the North Sea includes the entire 30% non-operated stake in licence 6/95, which contains the producing Siri field. Noreco said it holds significant interests in the area, including Cecilie, Nini, Nini East and Rau fields.

The buyout is expected to be finalised by June and Pareto Securities and Glitnir Securities will advise and effect the private placement, added Noreco.


Friday, 25 April, 2008, 06:30 GMT  | last updated: Friday, 25 April, 2008, 06:33 GMT

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