London-based Premier Oil plc announced it will sell its 100% stake in subsidiary Premier Oil Vietnam South BV (POVS) for a consideration of US$100 million. POVS holds 30% interest in Block 07/03 off Vietnam, which is located in the Nam Con Son Basin. Block 07/03 contains the Ca Rong Do (CRD) oil and gas discovery and the Ca Duc (Silver Sillago) exploration prospect.
Premier said the sales price includes an immediate cash payment of $45 million with further payments of up to $20 million due depending on the results of the CRD-3X appraisal. Payments of up to $35 million are contingent upon success at Ca Duc, and upon reaching certain development targets.
The CRD-3X appraisal well will spud by late July or early August, Premier said. The rig will then move to drill the Ca Duc prospect. Premier said it will continue to provide drilling support during the transfer of ownership, but that it will not participate in the capital cost of the wells.
Premier currently operates the Chim Sao field off Vietnam, which it brought onstream in 2H 2011, and the Dua project, which is being developed as subsea tie back to Chim Sao.
Subscribe
