18th Jul 2007 07:01
Premier Oil PLC18 July 2007 PREMIER OIL PLC ("Premier" or "the Company") Demerger of Premier Kufpec Pakistan joint venture into two separate businesses Premier announces that it has entered into an agreement with Kuwait ForeignPetroleum Exploration Company KSC ("Kufpec") to de-merge their respectiveinterests in Pakistan from the Premier Kufpec Pakistan joint venture. Thedemerged field portfolios will be run as separately owned businesses by Premierand Kufpec. Premier plans to open its own separate office in Islamabad. In September 2001, a joint venture was formed with Kufpec to hold Premier's andKufpec's interests in Pakistan through a company called Premier-Kufpec PakistanB.V. On completion, Premier will own through wholly owned subsidiaries its workinginterest shares in the Kadanwari (15.79%), Zamzama (9.375%), Bhit & Badhra(6.00%), Qadirpur (4.75%), and Zarghun South (3.75%) fields. The transaction is a restructuring of ownership from the joint venture toPremier and Kufpec. There is no transfer of consideration between the partiesand there is no material financial impact on Premier as a result of thedemerger. For the year ended 31 December 2006, Premier's working interest share ofproduction from the above interests amounted to 12,150 boepd. Group profitbefore tax attributable to the interests amounted to $63.9 million. At 31December 2006 the book value of gross assets attributable to the interests were$107.3 million. Simon Lockett, Premier's Chief Executive, commented: "The demerger of Premier's interests from the Premier Kufpec Pakistan jointventure will enable us to develop our own growth strategy in Pakistan. Directownership of assets will provide Premier with more flexibility in pursuing ourexploration, acquisition, and financing activities. We continue to enjoy astrong working relationship with Kufpec and will remain joint venture partnersin Pakistan, the Anoa field in Indonesia, and the Chinguetti field inMauritania." 18 July 2007 ENQUIRIESPremier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PRJames Henderson Tel: 020 7743 6673Gavin Davis Tel: 020 7743 6677 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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