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Premier: UK Green Lights Catcher Field Development Plan

|Includes:CRNCY, Premier Oil plc (PMOIF)

Premier Oil announced that UK's Department of Energy and Climate Change has approved the Catcher area Field Development Plan (NYSE:FDP). The Premier-operated Catcher area, located in the UK Central North Sea, is expected to produce 96 MBOE with a peak production rate of around 50 Mbbl/d.

The project will entail the drilling of 22 subsea wells (14 producers and 8 water injectors) on the Catcher, Varadero and Burgman fields which will be tied back to a leased FPSO. The oil will be offloaded by tankers while the gas will be exported through the SEGAL facilities.

All major service contracts have been awarded and the project is now in the execution phase. First oil is targeted for mid-2017.

In Dec-2013, Wintershall divested its 20% stake in the Catcher Field to MOL Group as part of a $375 million transaction undertaken by Wintershall to optimize its UK Continental Shelf portfolio.

Current ownership of Catcher Field: Premier Oil (50 %), Cairn Energy (30 %) and MOL (20%).

In Apr-2014, BW Offshore was awarded a contract from Premier Oil for an FPSO to operate on the Catcher oil field located in the UK North Sea.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: PMOIF, CRNCY