Premier Oil PLC Sale of interest in ETS pipeline (8939Y)
December 11 2017 - 2:00AM
UK Regulatory
TIDMPMO
RNS Number : 8939Y
Premier Oil PLC
11 December 2017
PREMIER OIL PLC
("Premier")
Sale of interest in ETS pipeline
11 December 2017
Premier is pleased to announce that it has entered into a sale
and purchase agreement ("SPA") to sell its entire equity interest
in the Esmond Transportation System ("ETS") pipeline to CATS
Management Limited (an Antin Infrastructure Partners portfolio
company).
Under the terms of the SPA, Premier will receive cash
consideration of up to GBP23.6 million ($31.6 million) for its
entire 30 per cent interest in ETS. The consideration consists of
an initial upfront payment of GBP21.0 million ($28.1 million)
(subject to certain customary financial adjustments) payable on
completion, plus a future potential payment of up to GBP2.6 million
($3.5 million) linked to the achievement of certain key milestones
in respect of any future development of the Pegasus field. Disposal
proceeds will be used to pay down Premier's existing debt.
The ETS pipeline was constructed in order to transport gas from
Esmond Area fields to the Bacton gas terminal on the North Sea
Coast in North Norfolk. The pipeline is currently operated by
Perenco UK Limited as operator of the Trent and Tyne fields, and is
used as the export route for the Cygnus gas field recently brought
on stream by ENGIE.
The effective date of the sale is 1 January 2017. Completion
remains subject to obtaining all normal and necessary third party
consents and regulatory approvals including discharges and release
of securities. Premier expects the sale to complete in 1H 2018.
Jefferies International Limited acted as financial advisor to
Premier, together with Centrica plc and Perenco UK Limited who have
also entered into separate SPAs, to sell their respective interests
in the ETS pipeline to CATS Management Limited.
Tony Durrant, Chief Executive, commented:
"The sale of the ETS pipeline interest is another step in
realising value from the E.ON UK portfolio acquired by Premier for
$120 million in 2016. The ETS pipeline does not serve any fields
owned by Premier and is therefore non-core to the group."
Enquiries
Premier Oil plc Tel: 020 7730 1111
Tony Durrant, Chief Executive
Richard Rose, Finance Director
Camarco Tel: 020 3757 4980
Billy Clegg
Georgia Edmonds
Notes to editors
As per Premier's 2017 Half Year Results issued on 24 August
2017, the equivalent value of the gross assets being transferred
was $27.2 million as at 30 June 2017, with an associated loss
before tax for the year ended 31 December 2016 of $1.6 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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