Premier Oil PLC Sale of Pakistan Business (5958B)
April 05 2017 - 2:00AM
UK Regulatory
TIDMPMO
RNS Number : 5958B
Premier Oil PLC
05 April 2017
This announcement has been determined to contain inside
information
PREMIER OIL PLC
("Premier" or "the Company")
Sale of Pakistan business
5 April 2017
Premier is pleased to announce that it has signed a share
purchase agreement with Al-Haj Energy Limited (Al-Haj) for the sale
of Premier Oil Pakistan Holdings BV, which comprises Premier's
Pakistan business for a cash consideration of US$65.6 million.
Al-Haj have paid a deposit to Premier of US$15 million and will pay
a further interim deposit of US$10 million within the next 60
days.
The transaction is in line with Premier's stated strategy to
dispose of non-core assets and the proceeds from the sale will be
used to reduce the Company's net debt. The economic date of the
transaction is 1 January 2017 with Premier retaining 2016 net cash
flows. The transaction is subject to receipt of customary
government and regulatory approvals and is expected to complete by
year-end 2017. Premier anticipates recording a book gain on
disposal estimated at US$40 million.
Scotiabank is acting as the sole financial advisor to Premier on
this transaction.
Tony Durrant, CEO, commented
"We are pleased to have reached agreement to sell our Pakistan
business. While now non-core for Premier, our Pakistan business has
consistently outperformed our expectations over the years and this
is testament to the hard work and skill of our team in
Islamabad."
Enquiries
Premier Oil plc Tel: 020 7730 1111
Tony Durrant (CEO)
Richard Rose (Finance Director)
Bell Pottinger Tel: 020 3772 2570
Lorna Cobbett
Henry Lerwill
Notes to editors
Premier's Pakistan business comprises non-operated equity
interests in six gas producing fields in Pakistan. In 2016, these
fields generated net profit after tax for Premier of US$19.8
million (which includes a one-time non-cash gain of US$5.7 million
in relation to the Kadanwari field). The value of the gross assets
attributed to Premier Oil Pakistan Holdings BV is US$40.7 million
as at 31 December 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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