Premier to acquire E.On’s interests off UK

Premier Oil PLC, London, has agreed to acquire the UK subsidiaries of E.On, Dusseldorf, in a transaction valued at $120 million plus working capital adjustments.

The deal covers interests in the Central North Sea, West of Shetlands area, and Southern gas basin with net production of 15,000 boe/d and reserves and contingent resources totaling 64 million boe.

Interests include 5.2% in Elgin-Franklin gas and condensate field, which produces 114,000 boe/d; 25% in Huntington oil and gas field, producing 15,000 boe/d; 47% of Babbage gas field; and 50% in the Tolmount gas development, a 2011 discovery on Block 42/28d west of Babbage field in the Southern gas basin.

E.On operates the Huntington, Babbage, and Tolmount interests.

When the deal closes Premier will own all of Huntington field. The transaction, covering a interests in 40 licenses, will complete E.On’s exit from North Sea exploration and production. Last month it sold its interests in the Norwegian North Sea to DEA Deutsche Erdoel AG for $1.6 billion (OGJ Online, Dec. 16, 2015). The company began a review of its North Sea Holdings in November 2014.

Premier also exited the Norwegian North Sea last year, selling its interests there to Det norske oljeselskap ASA for $120 million (OGJ Online, Nov. 16, 2015).

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