LONDON – Premier Oil is set to lift its stake in the Wytch Farm production assets offshore/onshore southern England.
The company has agreed to an initial cash consideration of $96 million. This will increase its interest from 12.38% to 30.1%, adding around 12.5 MMboe of 2P and 2C reserves and resources as of January 1, 2011.
Further payments could follow up to $14.4 million if the UK government approves a field development for the Beacon discovery in block 98/7a.
Wytch Farm is currently producing around 13,000 boe/d. Premier will also support the planned transition of operatorship from BP to Perenco UK, giving the latter a 50.1% interest in the assets.