Premier Oil is buying 15 mboe/d and 64 mmboe 2P+C2 in the UK North Sea for US$120 mm Cash. We view the transaction favourably as it is accretive both on the Brent Forward Curve and our Price Deck. The main value drivers are the accelerated use of Premier Oil tax losses and the Elgin Franklin field. Importantly, the Acquisition also improves the Net Debt/EBITDA covenants ratio of Premier, but on the Brent Forward Curve, the Company is still likely to be in breach by YE16. The Acquisition, howe
