Premier Oil Announces Two Major North Sea Acquisitions
UK-based independent Premier Oil Plc has entered into two separate sale and purchase agreements with BP Plc and Dana Petroleum Ltd. to acquire significant interests in the UK North Sea. In the first transaction, Premier will acquire BP’s Andrew Area and Shearwater assets in the Central North Sea, for a total cash consideration of US$625 million. Separately, the Company will also purchase an additional 25% interest in the Tolmount Gas Field in the Southern North Sea from Dana Petroleum for US$191 million in cash, plus up to US$55 million in future contingent payments. The acquired interests produced approximately 23,000 barrels of oil equivalent (boe) per day during 2019, and will add 82 million boe of reserves and contingent resources at an implied cost of less than US$10 per boe. Premier Oil plans to fund the acquisitions through a US$500 million equity raise, existing cash resources, and (if required) a US$300 million acquisition bridge financing facility.