The company, headed by industry veteran Roy Franklin, yesterday secured government approval to develop the Wood field, part of a wider $150 million (£80m) territory it bought from BP two years ago. The news will delight those who monitor the North Sea, as it illustrates how smaller firms can eventually replace the worlds oil giants without a slowdown in activity. The deal has been struck alongside partner Energy North Sea, and will boost Paladins output by 10 per cent to 55,000 barrels. Franklin confirmed that the group remained on the acquisition trail after the £22.5m share placing in March. Three of its understood targets have been put up for sale by Shell: the Auk, Fulmar and Dunlin fields. It has also been speculated that Paladin will get involved in the bidding war for Edinburgh Oil & Gas, although it will need to find more than the £120m tabled by the Dutch consortium led by Dyas UK. Paladin shares closed up 0.4 per cent at 184p. PIN//Scotsman