Premier Oil announces $130m disposal

Guy Bentley
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Premier Oil has announced the sale of its non-operated interests in the Scott, Telford and Rochelle fields to MOL Group for a cash consideration of $130m.

For the year to date, production has averaged 3.7 kboepd net. The deal comprises six UK North Sea licence and will require government approval.

Tony Durrant, chief executive, commented:

Our ownership of this package of non-operated assets in the Scott area has generated significant cash flow for the group since acquisition. However, this sale will allow our team in the UK North Sea to focus principally on our operated Solan and Catcher developments, and is a further step towards achieving our targeted disposals for the year.

The FTSE 250 firm announced Tony Durrant as its new chief executive last week and followed the decision of Simon Lockett to step down after nine years at the helm.

During his tenure, production at the business grew by 56 per cent, while cash flows rose by 580 per cent to $808m (£495m) in 2012.

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