30th Jun 2014 08:09
LONDON (Alliance News) - Premier Oil PLC said Monday that it has sold its non-operated interests in the producing Scott, Telford and Rochelle fields to MOL Group for a cash consideration of USD130 million.
The FTSE 250-listed oil company said that MOL Group will assume the liabilities for future abandonment costs. Premier's equity in the Scott, Telford and Rochelle fields is 21.8%, 1.6% and 15%, respectively.
The transaction, which comprises six UK North Sea licences, has an effective date of January 1, 2014 and is subject to certain pre-emption rights. Completion is subject to receipt of government approval, said the company.
Year-to-date production at the Scott, Telford and Rochelle fields has averaged approximately 3,700 barrels of oil equivalent per year net to Premier.
"Our ownership of this package of non-operated assets in the Scott area has generated significant cash flow for the group since acquisition. However, this sale will allow our team in the UK North Sea to focus principally on our operated Solan and Catcher developments, and is a further step towards achieving our targeted disposals for the year," said Premier Chief Executive Tony Durrant.
Shares in Premier Oil were trading 0.88% higher at 333 pence per share Monday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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