Chrysaor has sold its 40% interest in the Solan field to Premier Oil in return for a royalty and net production interest (NPI) in the field.
As a result of this transaction, Premier will consolidate 100% of the Solan field’s production, revenues, and CAPEX in its financial results. Premier currently estimates that the royalty payments and the NPI would become payable at an average oil price above $75/bbl and $100/bbl, respectively.
Separately, Premier has entered into a $100 million agreement with FlowStream Commodities, subject to the UK Department of Energy & Climate Change (DECC) approval. FlowStream will make a $100 million upfront payment to Premier in return for the proceeds from 15% of Premier’s production from the Solan field for a period of time, the duration of which is dependent on the Solan field’s production levels and future oil prices.