5 Apr 2017 07:00
This announcement has been determined to contain inside information
PREMIER OIL PLC
("Premier" or "the Company")
Sale of Pakistan business
5 April 2017
Premier is pleased to announce that it has signed a share purchase agreement with Al-Haj Energy Limited (Al-Haj) for the sale of Premier Oil Pakistan Holdings BV, which comprises Premier's Pakistan business for a cash consideration of US$65.6 million. Al-Haj have paid a deposit to Premier of US$15 million and will pay a further interim deposit of US$10 million within the next 60 days.
The transaction is in line with Premier's stated strategy to dispose of non-core assets and the proceeds from the sale will be used to reduce the Company's net debt. The economic date of the transaction is 1 January 2017 with Premier retaining 2016 net cash flows. The transaction is subject to receipt of customary government and regulatory approvals and is expected to complete by year-end 2017. Premier anticipates recording a book gain on disposal estimated at US$40 million.
Scotiabank is acting as the sole financial advisor to Premier on this transaction.
Tony Durrant, CEO, commented
"We are pleased to have reached agreement to sell our Pakistan business. While now non-core for Premier, our Pakistan business has consistently outperformed our expectations over the years and this is testament to the hard work and skill of our team in Islamabad."
Enquiries |
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Premier Oil plc | Tel: 020 7730 1111 |
Tony Durrant (CEO) Richard Rose (Finance Director) |
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Bell Pottinger | Tel: 020 3772 2570 |
Lorna Cobbett Henry Lerwill |
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Notes to editors
Premier's Pakistan business comprises non-operated equity interests in six gas producing fields in Pakistan. In 2016, these fields generated net profit after tax for Premier of US$19.8 million (which includes a one-time non-cash gain of US$5.7 million in relation to the Kadanwari field). The value of the gross assets attributed to Premier Oil Pakistan Holdings BV is US$40.7 million as at 31 December 2016.