LONDON: Britain's Premier Oil said on Tuesday it had sold its wholly owned Vietnam South subsidiary for an immediate cash payment of $45 million, with further gains of up to $55 million if production targets are met.
The company, which produces oil and gas in the North Sea, Indonesia and Vietnam, said it expects to get up to $20 million following well appraisals, and $35 million if targets are met at the Ca Duc exploration prospect.
Shares in the group were up 0.7 percent to 364 pence, giving the group a market valuation of 1.9 billion pounds ($2.9 billion).
Premier said earlier this month that it had begun the process of selling some assets and expected to conclude those divestments in the second half of the year.
The Vietnam South subsidiary holds a 30 percent operated interest in the Block 07/03, offshore Vietnam, which contains the Ca Rong Do oil and gas discovery and the Ca Duc exploration prospect.
The move follows Premier's announcement last week that it would lower its guidance for 2013 production to 63,000 barrels of oil equivalent per day (boepd), down from previous guidance of 65,000 to 70,000.
Premier has said that the Catcher oil field in the North Sea and Sea Lion off the coast of the Falkland Islands are progressing, adding that it would update the market on the Falklands process in August.
Comments
Comments are closed for this article.