Denison opposes oil bid by Greece

Denison Mines will oppose an attempt by the Greek government to acquire a majority interest in the company’s oil and gas operations in the Aegean Sea.

At press-time, the company was still awaiting official confirmation of reports that the Greek government may attempt such an acquisition as Greece’s Minister of Industry, Energy and Technology has been travelling.

Greek legislation specifically forbids the government from forcing developers of the Prinos/South Kavala project to reduce their interest, says Ed Shiller, Denison spokesman.

Last week, the Greek minister issued a statement saying he would draft a bill empowering the government to buy a majority of the shares in the North Aegean Petroleum Company (NAPC), an international consortium in which D enison has a 68.7% interest. The remaining equity is held by companies from West Germany, Greece and the U.S.

NAPC produces 26,500 bbl of oil and 4.9 million cubic ft of gas per day at the Prinos/South Kavala fields in the Aegean Sea.

Mr Shiller says that all the partners and banks have invested approximately $700 million(US) in the project.

Late last year , the Greek government offered $27 million to acquire all of NAPC but there was no serious response as the price was considered too low, says Mr Shiller.