Premier sells stake in PL 259 to Lundin

Premier Oil has sold its 30 per cent equity stake in licence PL359 to Lundin Norway AS for a total after tax consideration of $17.5 million, subject to Norwegian government approval.

The transaction will result in a profit of approximately $10 million net to Premier. Licence PL359, located offshore Norway, contains the Luno II discovery. An appraisal well to be drilled on the licence is expected to spud in June, the cost of which will be borne by Lundin.

Simon Lockett, Premier Oil Chief Executive, said: “We are pleased to be delivering against our promise to monetise non-core assets. We will continue to focus our capital and activities on projects where we are best positioned to add value.”

In a separate statement, Lundin has said it will now sell a 5 per cent stake in the licence to Austria’s OMV.

The Luno II discovery was made by Lundin Petroleum in 2013 and is located in PL359 in the central North Sea sector of the Norwegian Continental Shelf on the south western flank of the Utsira High approximately 15
kilometres south of the Lundin Petroleum-operated EdvardGrieg field. An appraisal well will be drilled on the Luno II discovery and is expected to spud during June 2014.

PL359 also contains numerous drill-ready exploration prospects and the next exploration well on the licence is likely to target the stacked Luno II North and Fignon prospects, estimated to contain gross unrisked
prospective resources of 46 mmboe.

Lundin Norway is the operator of PL359 and following completion of these transactions, will have a 65 percent interest. Statoil Petroleum ASA has a 15 percent interest and following completion of these transactions, OMV
(Norge) AS will have a 20 percent interest.