Sale Of Norwegian Business

abarrelfullabarrelfull wrote on 09 Dec 2015 11:51
Tags: det-norske europe norway premier upstream

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Premier is pleased to announce that it has agreed to sell Premier Oil Norge AS (“PONAS”) which comprises all its Norwegian assets, to Det norske oljeselskap ASA (“Det norske”) for a cash consideration of $120 million. The proceeds will be used to pay down the Company’s debt and represents another step in Premier’s previously stated programme of portfolio management. The transaction is subject to the receipt of government approval and is expected to complete by year-end.

Tony Durrant, Chief Executive, commented:

“We are pleased to have reached agreement to sell our Norwegian business to Det norske, one of our long term partners in Norway. Our team in Norway has done an excellent job in bringing the Vette project close to a sanction decision in a low oil price environment. The transaction will realise immediate value from the project as part of our strategy of active management of our portfolio.”

Notes to editors:

PONAS comprises the Premier-operated Vette development and adjacent Mackerel and Herring discoveries (50% interest), a non-operated interest in the Frøy field (50% interest) and seven exploration licences.

As at 30 June 2015 PONAS had net assets of $146.3 million (comprising gross assets of $189.9 million and liabilities of $43.6 million). For the year ended 31 December 2014 it generated an operating loss of $17.4 million.

Premier has been operating in Norway since 2005 and has realised value through previous disposals of the Grosbeak, Blåbaer and Luno II discoveries which have resulted in combined proceeds of $33.5 million.

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