big opening, page-15

from proactive investors uk site
Premier Oil sells Vietnamese discovery for up to US$100mln
By Jamie Ashcroft July 16 2013, 9:58am Premier Oil sells Vietnamese discovery for up to US$100mln

Premier Oil (LON:PMO) has struck a deal to sell its 30% stake in Block 07/03, offshore Vietnam, for up to US$100mln.

The block contains the Ca Rong Do oil and gas discovery and the Ca Duc exploration prospect.

Initially, Premier will receive US$45mln upfront with further payments contingent on the results from future work, including the upcoming CRD-3X appraisal well which will spud around the end of the month.

Under the terms of the deal US$20mln hangs on the CRD-3X well and subsequent development milestones for the discovery; meanwhile, US$30mln will depend upon future success at Ca Duc.

Premier said it will continue to support the drill programme, but it won’t have to pay the costs.

"We are pleased to be delivering against our commitment given earlier in the year to rationalise our investment portfolio.

“We will continue to focus our resources on projects where Premier is best positioned to add value."

Dublin based broker Davy says the deal will be seen as a positive by investors.

“Despite the 4p per share difference in the total consideration and our valuation of the asset, we believe the market will react well to Premier’s active portfolio management and capital allocation,” analyst Caren Crowley said in a note.