Premier Oil is to purchase 27.5% in Shearwater and 50-100% operator interest in five Andrew area fields from BP for US$ 625 million. The Shearwater acquisition will add 25 MMboe of reserves and resources. This was announced on 7 January 2020 alongside another agreement to acquire 25% in Tolmount from Dana Petroleum. 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. The Central North Sea, Quad 16, Andrew area includes the Andrew (BP 62.75%), Arundel (BP 100%), Cyrus (BP 100%), Farragon (BP 50%) and Kinnoull (BP 77.06%) oil and gas fields, with 2019 net forecast production of 18,000 boe/d. Shearwater was discovered by 22/30b- 4 (1991, Arco, 5,234m), and commenced production in October 2000, with gross forecast production of 18,500 boe/d for 2019. It lies within block 22/30b Area B Rest of Block, part of licence P188, and produces gas and condensate from the Late Jurassic Fulmar Formation and the Middle Jurassic Pentland Formation. Shearwater licence P188 partners are currently Shell UK Ltd (28% + Op), ExxonMobil via Esso Exploration and Production UK Ltd (44.5%), and BP via Arco British Ltd (27.5%).
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