The conclusion of the appraisal program at the giant Zama field in Block 7 offshore Mexico resulted in Premier upgrading its resource estimates. Progress has also been made on the fully appraised Sea Lion field near the Falkland Islands which, at 250 mmboe (gross) of resource in Phase 1, is a material oilfield development opportunity. Post period end, Premier submitted the Preliminary Information Memorandum, which forms the basis of a loan application for the senior debt component of the project financing structure, to export credit agencies.
In order to improve its balance sheet, Premier has initiated a formal sales process for its 25% interest in the Zama field which, if successful, will result in a material reduction in debt levels. In addition, Premier has launched a formal farm-down process of its 60% operated interest in Sea Lion to reduce its level of participation in the project.