Harbour Energy PLC — M&A Activity 2013

Jul 11, 2013

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 0669J

Premier Oil PLC

11 July 2013

PREMIER OIL PLC

("Premier" or the "Company")

Bream acquisition and transfer of operatorship

11 July 2013

Premier is pleased to announce that, in conjunction with KUFPEC Norway AS (KUFPEC), it has agreed to acquire an aggregate 40 per cent interest in PL407 from BG Norge AS (BG).  PL407 contains the Bream field and is on the Norwegian Continental Shelf.

KUFPEC will acquire a 30 per cent interest while Premier will increase its existing 40 per cent equity interest to 50 per cent and assume operatorship of PL407 and the Bream project.  The aggregate consideration payable by Premier and KUFPEC will be $22.2 million prior to interim period adjustments. 

Under a separate agreement, KUFPEC will acquire a 30 per cent interest in the adjacent PL406 licence from Premier for a contingent consideration of $5 million.  PL406 contains the Mackerel discovery and the Herring exploration prospect.

Revised ownership in the two licences will be as follows:

	PL406		PL407
	Old	New	Old	New
BG	-		40 (op)	-
Premier	80 (op)	50 (op)	40	50 (op)
Tullow	20	20	20	20
Kufpec	-	30	-	30

The acquisitions are subject to Norwegian government approval.  Development sanction for the area is targeted for 2014.  Premier currently estimates 2C resources covering the Bream and Mackerel accumulations of around 50 mmboe.

Simon Lockett, Chief Executive, commented:

"We are pleased to have reached agreement with BG and KUFPEC for the future of the Bream Area development.  We look forward to assuming operatorship, working with the new partnership group and defining fully the Bream Area project."

Notes to Editors

The purchasing entity for Premier in respect of these agreements will be Premier Oil Norge AS. KUFPEC Norway AS is a subsidiary of Kuwait Foreign Petroleum Exploration Company ksc.

Below is a link to a map highlighting the location of PL407 and PL406.

http://www.rns-pdf.londonstockexchange.com/rns/0669J_-2013-7-10.pdf

Enquiries
Premier Oil plc	Tel: 020 7730 1111
Simon Lockett
Tony Durrant
Pelham Bell Pottinger	Tel: 020 7861 3232
Gavin Davis
Henry Lerwill

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCURVAROWABAUR