Premier sells noncore UK assets to Atlantic Petroleum UK

Premier Oil PLC agreed to sell a package of noncore UK assets to Atlantic Petroleum UK Ltd. for £8.2 million in cash.

July 30, 2003

2 min read

By OGJ editors
HOUSTON, July 30 -- Premier Oil PLC agreed to sell a package of noncore UK assets to Atlantic Petroleum UK Ltd. for £8.2 million in cash, £3 million of which will be deferred payments linked to first oil from the discoveries.

The package includes a 3.75% interest in the Rob Roy, Ivanhoe, and Hamish fields, a 3.75% interest in the Perth discovery in Block 15/21 near the Scott and Telford fields, a 15% interest in the Chestnut field, and an 11.03% interest in Block 20/2, which includes Premier's 8.27% interest in the Ettrick field.

Premier has retained a right to buy back into a 5.5% interest in Block 20/2 (excluding the Ettrick field). These interests represent Premier's entire interest in each of these assets.

All sales are subject to the UK Department of Trade and Industry approval and joint venture partner approval.

In other news, Premier has signed an agreement with Reach Exploration Ltd. to acquire 50% interest in License P1048 in the Moray Firth blocks 20/10b, 21/6a, 20/15a, and 21.11b. the license is on trend with the Buzzard discovery.

Reach will retain 5% carried interest. Intrepid Energy North Sea Ltd. has a 30% interest and First Oil Expro Ltd. has a 15% interest.

The DTI has approved the assignment of the license, and it has been agreed that Premier will become operator.