Premier Oil has confirmed media speculation that it has reached agreement with a third party for the disposal of its entire 33.8% interest in the Wytch Farm field.
The proposed consideration is US$200 million and Premier will also expect to release letters of credit, amounting to approximately US$75 million, held in connection with future field abandonment liabilities. Wytch Farm production to 30 June, net to Premier’s pro forma 33.8% interest was 5.0 kboe/d.
The transaction is subject to signature of a sale and purchase agreement and to lender approval, a process which is under way. Given the size of the consideration, the transaction is likely to be classified as a Class 1 transaction requiring shareholder consent. A further announcement will be made when appropriate.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23082017/premier-oil-potential-sale-of-wytch-farm-interests/