Premier Oil PLC Completion of Babbage sale & operations update (7494J)
07 December 2018 - 6:00PM
UK Regulatory
TIDMPMO
RNS Number : 7494J
Premier Oil PLC
07 December 2018
Premier Oil PLC
("Premier" or "the Group" or "the Company")
Completion of the Babbage Area sale & operations update
7 December 2018
Completion of the Babbage Area sale
Premier is pleased to announce that following receipt of
necessary approvals, the sale of its interests in the Babbage Area
to Verus Petroleum SNS Ltd (Verus) has now completed.
Premier has received GBP30.3 million ($38.7 million), after
adjustments for Babbage cash flows collected by Premier since the
effective date of 1 January 2018. In addition, Verus will take on
exploration commitments valued at c.$24 million. Production from
Babbage has averaged 2.5 kboepd year to date.
The sale proceeds will be used to pay down the Company's
existing debt.
Production update
Group production year to date has averaged 79.4 kboepd.
Production in November and December to date was above forecast at
92 kboepd with a record daily production rate of 98.7 kboepd
achieved on 4 December. This strong production performance has been
driven by high uptime across the Group's producing portfolio,
including at Premier's operated Catcher Area which has averaged 68
kboepd (gross, Premier 50 per cent) in November and December to
date.
Premier continues to forecast full year production of around 80
kboepd.
Premier has hedged over 30 per cent of its 2019 forecast oil
entitlement production at an average price of $70/bbl, as per
previous disclosure.
Mexico update
On 29 November, the Ensco-8503 rig spudded the Zama-2 appraisal
well, the first of the two well Block 7 Zama appraisal programme.
The well will aim to confirm the oil water contact and is expected
to reach the reservoir early in the New Year.
Sierra Oil & Gas, Premier's 40 per cent partner in the Block
7 Zama discovery, announced on 4 December that it is to be acquired
by DEA Deutsche Erdoel AG (DEA). DEA is also the operator and
Premier's 40 per cent partner in Block 30, which contains the high
impact Wahoo and Cabrilla prospects, with 3D seismic acquisition
planned for 2019.
Enquiries
Premier Oil plc Tel: 020 7730 1111
Tony Durrant, Chief Executive
Richard Rose, Finance Director
Camarco Tel: 020 3757 4983
Billy Clegg
Georgia Edmonds
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END
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