Premier sells Wytch Farm stake

Premier Oil has agreed to sell its 33.8% stake in the Wytch Farm oilfield in the UK to junior Verus Petroleum for USD 200 million, the independent company announced on Tuesday.

Additionally, Verus Petroleum will assume any decommissioning liabilities for the field, allowing Premier to release letters of credit worth USD 75 million. 

“The disposal will allow for a significant reduction in Premier’s net debt and generates material value for shareholders,” said Premier CEO Tony Durrant. “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.”

The deal is subject to pre-emption by Premier’s JV partners at the field, which include operator Perenco with a 53.8% stake, Ithaca Energy with 7.4% and Repsol Sinopec Resources with 5%.

Estimated 2P reserves remaining at the field at the end of 2016 stood at 14.9 million boe, Premier’s statement added.