Premier Expands Wytch Interests

Premier Oil reported today (3 July) 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 $15.2 million (£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 two 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.

Source: www.oedigital.com