Premier Oil plans to acquire 25% in the Southern North Sea Tolmount Field and surrounding area from KNOC subsidiary Dana. Premier will pay US$ 191 million, plus up to US$ 55 million contingent consideration. This was announced on 7 January 2020 alongside another deal to acquire equity in Andrew Field area and Shearwater Field from BP. The two deals are to be funded via a US$ 500 million rights issue plus debt, however Premier's largest creditor, Analytical Research Capital Management (ARCM), has expressed opposition, citing a number of concerns including deal cost, decommissioning liabilities, and increased exposure to the UK gas market. Tolmount is estimated to contain 540 Bcfg P50 recoverable reserves in Permian Leman Formation sands. The development concept comprises four producing wells initially, and a standalone unmanned installation with a new gas export pipeline to shore, at a cost of US$ 550 million. Development drilling will commence in mid 2020, and first gas is expected by end 2020, with peak production anticipated to reach up to 300 MMcfg/d. A 500 sq km high resolution 3D seismic survey was acquired across the Greater Tolmount Area in March/April 2019 and the interpreted data will be used to optimise development drilling at Tolmount Main, refine the location of a potential Tolmount Far East exploration well (estimated 150 Bcfg unrisked resources), and identify further prospectivity in the area. The Greater Tolmount Area spans Southern North Sea licences P1330 - 42/28d and P2305 - 42/28c, and partners are Premier Oil E&P UK Ltd (50% + Op) and KNOC via Dana Petroleum E&P Ltd (50%).
Premier has agreed to acquire the Andrew Area and Shearwater assets from BP for US$625 MM as well as a 25% extra in the Tolmount Area from Dana for US$191 MM plus contingent payments of up to US$55 MM. Andrew involves 50%-100% interests in 5 fields + operatorship