Premier Oil : Signs Sale and Purchase Agreements for BP Acquisitions

By Jaime Llinares Taboada

Premier Oil PLC Monday said it has signed sale and purchase agreements with BP PLC for the acquisition of interests in the Andrew area and the Shearwater field in the U.K. North Sea.

The U.K. oil-and-gas company said the agreement follows receipt of creditor approval. Premier plans to fund the $210 million deal via an equity raise, it said.

The acquisitions are expected to be completed by September and remain conditional on Premier refinancing its existing credit facilities, equity funding, and customary other approvals, Premier said.

The buyer also expects to pay a further $115 million to BP based on higher future oil and gas prices, but this will be funded from the assets' revenue.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT