Premier Oil ready to acquire E.ON UK North Sea assets

Premier Oil today announces it has agreed to acquire the whole of E.ON’s UK North Sea assets for a net consideration of $120 million plus working capital adjustments. The proposed acquisition, which will be funded from existing cash resources, adds immediate cash generative production, realises tax synergies on Premier’s current c.$3.5bn UK tax loss position and is accretive to lending covenants.
The assets being acquired are located in the Central North Sea, West of Shetlands and the Southern Gas Basin and add stable UK gas revenues to the portfolio rebalancing Premier’s commodity exposure.
The proposed acquisition will add c.15 kboepd of net production to Premier in 2016 and c.64mmboe to Premier’s net reserves and contingent resources, at an implied cost of c.$1.9/boe, accelerate Premier’s existing UK tax loss position of c.$3.5 billion.