ADVFN Morning London Market Report: Tuesday 12 September 2017

Share On Facebook

Premier Oil agrees $200m sale of Wytch Farm stake to Verus

© ADVFN

Premier Oil has agreed to sell its entire 33.8% stake in the Wytch Farm oilfield to Verus Petroleum SNS for a cash consideration of $200m.
The cash consideration will be payable on completion and Premier will also be able to release around $75m in letters of credit related to future decommissioning liabilities that are now being transferred to Verus.

Premier said the disposal is in the best long-term interest of the company and its stakeholders and represents “an excellent opportunity to realise an attractive valuation well in excess of the implied valuation from the most recent transaction in Wytch Farm”.

Proceeds from the disposal will be used to pay down Premier’s existing debt.

Chief executive Tony Durrant said: “The disposal will allow for a significant reduction in Premier’s net debt and generates material value for shareholders. This is the latest in a series of disposals in line with Premier’s strategy of realising value for shareholders at the appropriate stage of an asset’s life cycle and at an attractive valuation.”

Wytch Farm is a large onshore oil field although a significant area extends offshore. The field has been developed with 11 well sites linked to a central onshore gathering station and is operated by Perenco UK Limited. Production is exported via pipeline to the Hamble terminal near Southampton for tanker loading.

At 0930 BST, the shares were up 1.7% to 58.62p.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:43 V: D:20170922 13:34:49