Premier ups interest in Nam Con Son basin block

Offshore staff

LONDON -- Premier Oil has acquired a 25% interest in block 12W offshore Vietnam from Delek Energy Systems. Premier is the operator of the block, and is progressing the development of the block’s Chim Sáo field.

The field, which containing approximately 50 MMboe of oil and gas, is forecast to come onstream at a rate of 25,000 boe/d in late 2010 or early 2011. The block also contains the Dua oil and gas discovery.

The purchase price for the interest is $72 million in cash, before adjustments, with an effective date of March 31. The sale and purchase agreement also provides for future payments of up to a total of $10 million contingent on the development of other fields in the block.

Separately, PetroVietnam Exploration and Production (PVEP) has confirmed that it will exercise its back-in right to acquire a 15% interest in the PSC.

Following completion of both Premier’s acquisition from Delek and the PVEP back-in, the interests in block 12W will be: Premier 53.125% (operator), Santos 31.875%, and PVEP 15.000%.

07/20/2009