Premier announces that it has sold 100 per cent of the shares in its wholly owned subsidiary Premier Oil Vietnam South BV (POVS). POVS holds a 30 per cent operated interest in Block 07/03, offshore Vietnam, which contains the Ca Rong Do (CRD) oil and gas discovery and the Ca Duc (Silver Sillago) exploration prospect.
The consideration in respect of the transaction is up to US$100 million, which includes an immediate cash payment of $45 million. Further payments of up to US$20 million are due depending on the results of the upcoming CRD-3X appraisal well and a subsequent milestone relating to a potential development. Payments of up to US$35 million are contingent on success at Ca Duc, and on reaching certain targets in relation to its development.
The CRD-3X appraisal well will spud at the end of July, or in early August. The rig will then move to drill the Ca Duc prospect. Premier continues to provide drilling support during the transfer of this asset but will not participate in the capital cost of the wells.
Simon Lockett, Chief Executive , commented:
“We are pleased to be delivering against our commitment given earlier in the year to rationalise our investment portfolio. We will continue to focus our resources on projects where Premier is best positioned to add value.”
Press Release, July 16, 2013