The price tag may be small, but the implications of this deal for the UK M&A market are big. Premier has acquired immediate production in a core area at a significant discount to our commercial valuation. The low price achieved demonstrates the difficulty of finding buyers in the current M&A market and the extent to which sellers may need to compromise on valuation. E.ON is retaining a portion of abandonment liabilities in Ravenspurn North and Johnston – a fact which underscores an additional hurdle for mature asset deals in the UK. Other players seeking to make similar disposals - either for strategic reasons or out of necessity – will be hugely disheartened to see this valuation.