Premier Oil share price lifts as it increases its stake in Britain's biggest onshore oil field

 
Courtney Goldsmith
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Wytch Farm Which Is The Largest Oil Field In The UK Is Put For Sale By BP
Wytch Farm is the UK's largest onshore oil field (Source: Getty)

Shares in Premier Oil rose today after the oil producer revealed an £11.7m deal to increase its stake in Britain's largest onshore oil field.

Premier acquired a further 3.75 per cent interest in two licenses that contain the Wytch Farm field from Maersk Oil, taking Premier's stake in the massive field to 33.8 per cent.

Shares in the North Sea-focused firm were up 3.5 per cent to 51.75p in afternoon trading.

Read more: Premier Oil's boss sees his pay rise by a third in 2016

Other shareholders in the field, which was previously owned by BP, include privately-owned Perenco now with a 53.8 per cent stake, Ithaca Energy with 7.4 per cent and Repsol Sinopec with five per cent.

The Wytch Farm field, located in Dorset, produces around 15,000 barrels per day. Premier said the deal was "value accretive" and will be financed from existing cash resources with a rapid payback estimated at two years.

The transaction is expected to complete by the end of August.

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