Verus agrees to package for North Sea Babbage gas interests

Premier Oil has agreed to sell its interests in the Babbage area of the UK southern North Sea to Verus Petroleum SNS under a deal valued at around $100 million.

Offshore staff

LONDON – Premier Oil has agreed to sell its interests in the Babbage area of the UK southern North Sea to Verus Petroleum SNS under a deal valued at around $100 million.

The interests include a 47% interest in the producingBabbage gas field, a 50% stake in the Cobra discovery, and certain outstanding exploration commitments.

Premier will receive further cash payments of up to $7.7 million if Cobra goes forward to development, and potentially additional payments dependent on third-party business across the Babbage infrastructure.

The company plans to use the proceeds to pay down its debt.

04/30/2018

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