Deal Insight

Premier Oil sells its 33.8% stake in Wytch Farm to Perenco for US$200 million

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05 September 2017

Premier Oil sells its 33.8% stake in Wytch Farm to Perenco for US$200 million

Report summary

On 22 August 2017, Premier Oil announced the sale of its 33.8% stake in Wytch Farm assets for US$200 million to an undisclosed third party. Wytch Farm, located in the Wessex Basin, came onstream in 1979 and is Europe's largest onshore oil field. The field is now more than 90% depleted with production at less than one-sixth of its 1996 peak, but is a steady producer with at least 10 years of production left. We value Premier Oil's stake in Wytch Farm at US$156 million (NPV10, 1 January 2017), on a standalone basis. The acquisition comes at a premium to our valuation, suggesting the buyer sees an opportunity to unlock further value from the asset. There is upside beyond what we model as base case. The asset could also suit a buyer in a tax loss position.

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
    • Upsides
    • Risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 7 images and tables including:

  • Executive summary: Table 1
  • Upstream assets: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

What's included

This report contains:

  • Document

    Premier Oil sells its 33.8% stake in Wytch Farm to Perenco for US$200 million

    PDF 284.80 KB

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