3 Jul 2017 07:20
PREMIER OIL PLC
("Premier")
Agreement to acquire additional Wytch Farm interests
3 July 2017
Premier is pleased to announce that it has signed a sale and purchase agreement to acquire a further 3.75% interest in Licences PL089 and P534, which contain the Wytch Farm field, from Maersk Oil North Sea UK Ltd for a cash consideration of £11.7 million (less final completion adjustments which will reduce the overall consideration paid). The acquisition will be financed from existing cash resources with a rapid payback estimated at 2 years.
As a result, Premier's interest in the Wytch Farm field will increase by 3.71% to 33.8%, adding approximately 2.7 mmboe of 2P and 2C reserves and resources as at 1 January 2017. The field is producing c15,000 boepd (gross) year to date. The acquisition is value accretive and allows Premier to accelerate the use of its existing pool of tax losses.
This acquisition follows the service of a notice of intention to sell by Maersk and the subsequent exercise by Premier and Perenco of their rights of pre-emption. The acquisition is conditional upon satisfaction of certain customary conditions including government and third party approvals, and is expected to complete by the end of August.
Enquiries |
|
Premier Oil plc | Tel: 020 7730 1111 |
Tony Durrant, Chief Executive |
|
Richard Rose, Finance Director |
|
| |
Bell Pottinger | Tel: 020 3772 2570 |
Lorna Cobbett Henry Lerwill |
|
Notes to editors
Revised ownership in the Licences and in the Wytch Farm field will be as follows:
Licences (PL089 & P534) (%) | Wytch Farm Field (%) | |||
Existing | New | Existing | New | |
Perenco | 49.6 | 53.4 | 50.1 | 53.8 |
Premier | 30.4 | 34.1 | 30.1 | 33.8 |
Ithaca Energy | 7.5 | 7.5 | 7.4 | 7.4 |
Maersk | 7.5 | 0 | 7.4 | 0 |
Repsol Sinopec | 5.0 | 5.0 | 5.0 | 5.0 |