Premier announced on 30 April 2018 that it is selling its interest in a number of assets in the Babbage area to Verus Petroleum. The deal will see Verus obtain 47% interest in the Babbage field, 50% interest in the Cobra discovery and a number of exploration commitments. The sale of Babbage amounts to GBP 62.9 million (USD 88.1 million) and exploration commitments of GBP 17 million (USD 23.8 million). If the development of Cobra proceeds then additional payments would take place depending on third party business in addition to a cash payment of GBP 5.5 million (USD 7.7 million). The effective date of the deal is 1 January 2018 and completion is expected during H2 2018 subject to partner and government approval. On 6 July 2018, Spirit Energy announced it has reached agreement to take operatorship of the Babbage and Cobra licences. Spirit plans to drill an exploration well at the Python prospect in Q2 2019 to further prove up reserves in the region. Transfer of operatorship from Premier Oil is subject to completion of the divestment of Premier Oil's 47% interest in Babbage and 50% interest in the Cobra licence to Verus Petroleum and receiving relevant regulatory approvals.  Babbage was discovered in 1989 by Amocoâs 48/2-2Z well and appraisal drilling took place in 2006. The field has a Permian Leman Sandstone reservoir. During Phase 1 of development three horizontal multi-fractured wells were drilled between April and November 2009 and a platform was installed in September 2009. Production commenced from the field in August 2010. During phase 2, which took place between 2012 and 2013, there were 2 multi-fracced development wells were drilled. The Not Permanently Attended Installation (NPAI) is tied-back to the West Sole field which is located 28 km to the south. The field is expected to produce over 175 Bcfg over a life of 20 years.   Cobra is a segmented structure spread over five separate segments of Rotliegendes Sandstone. The discovery was made by Amoco in November 1984, when well 48/2-1 was reported to have encountered gas, although it would not flow at commercial rates unstimulated. An appraisal well was drilled by EnCore in May 2008, which targeted the same 3-way closure. However, it was abandoned as uncommercial. When tested the well flowed a maximum unstimulated rate of 1.1 MMcf/d dry gas. Verus is planning to drill a new appraisal well in 2019 to test the presence of further volumes of gas, which could be tied-back to the Babbage field.  Following completion of the deal interest in Babbage, which is located in block 48/2a and covered by licence P456 will be held by Verus Petroleum UK Limited (47%), Dana Petroleum (E&P) Ltd (40%) and Spirit Energy Southern North Sea Ltd (13% + operator). Interest in P2212, P2290 and P2301 will be held by Verus Petroleum UK Limited (50%) and Sprit Energy Southern North Sea Limited (50% + operator).
Premier announced on 30 April 2018 that it is selling its interest in a number of assets in the Babbage area to Verus Petroleum. 