2009-08-15-2009-01-01

To buy company, gaining 50 MMBOE resources; 10% share in Volve Field; 30% in Oselvar discovery; 15% in Draupne discovery.

Norwegian company Bayerngas Norge AS plans to acquire PA Resources Norway AS, the Norwegian subsidiary of Sweden-based PA Resources AB, including all of its assets on the Norwegian Continental Shelf, for approximately US$220 million in cash. The assets include approximately 50 million barrels of oil equivalent of reserves and resources. Bayerngas Norge will take over a 10% share in Volve Field, a 30% share in the Oselvar discovery and a 15% share in the Draupne discovery. PA Resources reports the transaction will strengthen its financial position and its ability to successfully develop its production licenses in the years to come. Ulrik Jansson, PA Resources president and chief executive, says the company has chosen to prioritize its interests in other countries. "The ongoing consolidation of the Norwegian oil industry will continue and there will be fewer but stronger oil and gas companies in Norway. We are convinced that Bayerngas Norge will be one of the successful companies," he says. As part of a strategic overview, PA Resources will mainly focus on development of its production assets in North and West Africa, combined with exploration activities. PA Resources will also maintain exploration operations in the south North Sea with focus on the United Kingdom, Denmark and the Netherlands. PA Resources operates in Tunisia, Norway, Greenland, Great Britain, Denmark, The Netherlands, Equatorial Guinea and the Republic of Congo (Brazzaville). Bayerngas Norge is a subsidiary of German gas company Bayerngas GmbH. The effective date is Jan. 1, 2009.