Premier Oil said Sept. 12 it has entered into a sale and purchase agreement to sell its entire interests in licenses PL089 and P534, which contain the Wytch Farm field to Verus Petroleum SNS Limited for a cash consideration of $200 million (subject to certain customary financial adjustments) payable on completion.

In addition, Premier Oil will be able to release Letters of Credit totaling approximately $75 million which have been issued in relation to future decommissioning liabilities that are now being transferred to Verus. The effective date of the disposal is July 1, 2017.

Wytch Farm is an onshore oil field located in Dorset, U.K., that has been producing since 1979. Verus is a U.K.-focused independent E&P company backed by HitecVision, a Norway-based private equity investor focused on the upstream offshore oil and gas industry.

Premier Oil said the disposal will generate proceeds to accelerate deleveraging of its balance sheet. Wytch Farm is nonoperated, onshore and with fewer near-term growth prospects than elsewhere in Premier's portfolio.