FlowStream Enters into a US$100 million Stream with Premier Oil
June 2, 2015
ST. HELIER, JERSEY, 2nd JUNE 2015
Transaction Overview
FlowStream Commodities Ltd (“FlowStream”) is pleased to announce that it has, through a wholly-owned subsidiary, entered into a US$ 100 million stream agreement with a wholly-owned subsidiary of Premier Oil PLC (“Premier”), linked to Premier’s Solan oil field on the UK Continental Shelf (“UKCS”).
Under the terms of the streaming agreement, FlowStream will provide US$ 100 million in cash to Premier in return for a fixed percentage of Premier’s gross production from the Solan field.
Solan Oil Field Overview
The Solan oil field is a key near term producing asset within Premier’s UKCS portfolio. The field is located in UKCS Block 205/26a in Licence P164, approximately 150 km west of the Shetland Islands in 135m of water.
Key highlights of the Solan oil field include:
- 100% owned and operated by Premier
- Expected by Premier to produce over 40 million barrels of oil
- Will become a major contributor to Premier’s total global production with Premier targeting a field plateau production rate of between 20 to 25 thousand barrels of oil per day
- Field development plan designed to minimize downtime due to weather by use of a fixed steel jacket and sea bed storage tank
- Completion and commissioning activities, which will include drilling of the second pair of production and injection wells, well underway
Jan Laubjerg, Chief Executive Officer of FlowStream, commented:
“Premier is one of the best capitalised and most experienced UKCS independents, with one of the broadest range of funding options available to the European independent oil & gas sector. In light of this, we are all the more delighted that Premier has recognised the risk management and balance sheet benefits of diversifying its broad array of funding choices to now also include streaming. Having diligenced the Solan field and its development extensively for some time now, we understand the field and are confident in Premier’s operating and development capabilities and look forward to its delivery of first oil in the near future.”
Completion of the transaction is subject to DECC approval.
Enquiries:
| FlowStream Commodities | Jan Laubjerg
Ben Iversen |
+41 41 784 50 60
|
Notes to Editors
FlowStream creates new streams and buys existing royalties in the global oil & gas sector. FlowStream typically creates new streams by buying a specified portion of future production (a “stream”) on a specific oil & gas license, lease or field. FlowStream, with the support of its shareholders, who include KKR, Global Gate Capital and Anglo Pacific Group, intends to grow and diversify its portfolio of streams and royalties by sourcing primarily development and producing assets on a worldwide basis. For more information, please visit flowstreamcommodities.com