Premier Picks Up Additional Stake in Vietnam's Nam Con Son Basin
Premier has signed a Sale and Purchase Agreement ("SPA") and completed the acquisition from Delek Energy Systems Ltd ("Delek") of Delek Energy (Vietnam) LLC, the holding company for its 25% interest in Block 12W in the Nam Con Son Basin, offshore Vietnam. Premier is the Operator of the Block, and is progressing the development of the Chim Sáo field, containing approximately 50 mmboe of oil and gas, which is forecast to come onstream at a rate of 25,000 boepd in late 2010 or early 2011. The block also contains the Dua oil and gas discovery.
The purchase price for the interest is $72 million in cash, before adjustments, with an effective date of March 31, 2009. This will be funded from the Company's existing cash and undrawn facilities. The SPA also provides for future payments of up to a total of $10 million contingent on the development of fields in Block 12W other than Chim Sáo.
Separately PetroVietnam Exploration and Production ("PVEP") has confirmed that it will exercise its back-in right to acquire a 15% interest in the PSC.
Following completion of both Premier's acquisition from Delek and the PVEP back-in, the interests in Block 12W will be; Premier 53.125% (Operator), Santos 31.875%, PVEP 15.000%.
Simon Lockett, Chief Executive Officer, commented, "I am pleased that Premier has managed to secure additional equity in Block 12W at an attractive price, and look forward to welcoming PVEP to the Joint Venture on completion of their back-in."
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