Premier Oil Completes On E.ON North Sea

Published at 09:15AM - 29/04/16

Premier Oil has completed the acquisition of E.ON’s UK North Sea Assets, following receipt of all necessary approvals.

The $120 million deal, includes interests in licences concentrated in the Central North Sea, West of Shetlands and the Southern Gas Basin.

Offshore Assets

Acquired asset interests include:

Elgin-Franklin (5.2%, TOTAL Operated) – world class asset currently producing 114kboepd with operating costs of c.$8/boe

Huntington (25%, Operatorship) – currently produces c.15kboepd with remaining reserves of 10mmboe. Premier’s interest will increase to 100%.

Babbage (47%, Operatorship) – currently produces from five wells with infield and near-field growth opportunities

Tolmount (50%, Operatorship) – one of the largest discoveries in the Southern Gas Basin in recent years with estimated gross resources of 200Bcf-1Tcf

“We are pleased to have completed the acquisition of the UK North Sea assets from E.ON which strengthens Premier’s position in the UK North Sea, adding high quality assets at a compelling valuation of only $1.6/boe” said Tony Durrant, Chief Executive Premier Oil.

“The acquired assets have had a strong start to 2016, performing ahead of expectation, adding immediate cash generative production of over 17 kboepd and provide future opportunities to enable us to deliver value for our shareholders.”

Reorganisation

From today, the former E.ON organisation and its assets now report to Robin Allan, Director of North Sea & Exploration, who will oversee the transition of the assets into Premier’s existing UK business unit in Aberdeen.

The integration process has now commenced and it will ensure that all of Premier’s UK operations are managed by a single management team in our Kingswells office, Aberdeen.