Acquisition of E.ON UK North Sea Assets 13 January 2016
Acquisition background Premier has agreed to acquire E.ONs UK North Sea assets for a consideration of 120m plus working capital adjustments; the acquisition will be funded from existing cash resources Proposed transaction continues…
Rationale for the acquisition Compelling valuation c. 15mboepd of net production in 2016 and c.64mmboe of net reserves and resources acquired, at an implied cost of c.1.9/boe accelerate Premiers existing UK tax loss position of…
Financial benefits of the acquisition Strong net cash flow in 2016 and 2017 even at current oil/gas prices c. 15mboepd of net production and associated cash flow added on completion Assets being acquired with a valuable hedging…
E.ON UK assets Central North Sea Producing Fields - Elgin-Franklin (1), Huntington (2), Scoter & Merganser (5) Southern Gas Basin Main producing field - Babbage (3) Late-life - Ravenspurn North & Johnston (3), CMS area (6)…
Elgin-Franklin 5.2% of Total-operated HPHT gas/condensate fields Current production: 110kboepd (6kboepd net) Expected production over 110kboepd through to 2019 Mid-life asset with 15 years production history and 20 years…
Huntington E.ON operated Central North Sea oil field in which Premier has an existing stake Opportunity Premier interest will now go to 100% to reduce costs and Produced via a leased FPSO owned and operated enhance by Teekay…
Babbage Area 47% of E.ON operated Babbage dry gas field Online 2010, currently 5 production wells Plans to operate unmanned Ravenspurn North Infill well opportunity Johnston Near-field exploration portfolio Decommissioning of…
Tolmount 50% of E.ON operated Gas discovery Resources up to 1Tcf (gross) Main field 500Bcf, East Tolmount 50-450Bcf Sanction (FID) 2017, First gas 2019/2020* Two development options, both with access to upside and 3rd party…
Conclusion Excellent opportunity to capture long-term value in a low oil price environment Materially covenant accretive, financed out of existing cash resources, and acquiring high quality assets with a valuable hedging position in…
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