Oilexco Says Premier's Price for ONSL Less Than Owed to Creditors

Oilexco has been advised by the Administrators of Oilexco North Sea Limited (ONSL) that the Administrators have entered into a contract for Premier Oil to acquire all the shares of ONSL for $505 million subject to a Company arrangement with the creditors, failing which Premier will acquire the business and assets of ONSL for $415 million.

Oilexco understands the sale price is less than the amount owed by ONSL to its creditors and that the total consideration payable to Oilexco under the Share Acquisition Agreement is $1. As a result, Oilexco will not receive funds in excess of $1 from the sale which is expected to close in late May. Oilexco remains in CCAA as announced on February 5, 2009 and will continue to provide the market with timely updates.