Premier completes E.ON deal

UK-based independent Premier Oil has completed its deal to by E.ON's UK North Sea assets.

On 13 January 2016, Premier announced that it had agreed to acquire the whole of E.ON's UK North Sea assets for a net consideration of US$120 million.

Premier will acquire interests in licenses concentrated in the central North Sea, West of Shetlands and the southern gas basin. 

Acquired asset interests include:

• Tolmount (50%, operatorship) – one of the largest discoveries in the southern North Sea gas basin in recent years, with 200 Bcf-1 Tcf estimated gross resources.
• Elgin-Franklin (5.2%, Total operated) - world class asset currently producing 114,000 boe/d with operating costs of c.$8/boe
• Huntington (25%, operatorship) - currently produces c.15,000 boe/d with remaining reserves of 10 MMboe. Premier’s interest will increase to 100%.
• Babbage (47%, operatorship) – currently produces from five wells with infield and near-field growth opportunities

Tony Durrant, Premier's CEO, commented: “We are pleased to have completed the acquisition of the UK North Sea assets from E.ON which strengthens Premier’s position in the UK North Sea, adding high quality assets at a compelling valuation of only $1.6/boe. The acquired assets have had a strong start to 2016, performing ahead of expectation, adding immediate cash generative production of over 17,000 boe/d and provide future opportunities to enable us to deliver value for our shareholders.”