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Premier Oil proposed UK North Sea acquisitions from BP for $625 million

Christian Fernsby ▼ | January 7, 2020
Premier Oil announced the proposed acquisitions of the Andrew Area and Shearwater assets from BP for $625 million, and an additional 25 per cent interest in the Premier operated Tolmount Area from Dana for US$191 million plus contingent payments of up to $55 million.
Premier Oil
Acquisition   Premier Oil
Premier is also pleased to announce the proposed extension of its existing credit facilities to 30 November 2023.

Topics: Premier Oil North Sea acquisition UK

The proposed acquisitions will be funded via a $500m equity raise net of expenses which has been fully underwritten on a standby basis, existing cash resources and, if required, an acquisition bridge facility of $300 million.

Premier expects that the equity raise will include both a placing and rights issue component with any shares issued under the placing qualifying for the subsequent pre-emptive rights issue.

It expects to confirm the structure and terms in Q1 2020 following consultation with major shareholders.

Lender consent for the proposed acquisitions, related funding arrangements and extension of credit facilities will be sought via two court-approved schemes of arrangement.

Of the creditors subject to the Schemes, 83.3 per cent of Super Senior Commitments and 72.7 per cent of the Senior Commitments have already committed to approve the Schemes.

The Andrew and the Shearwater Acquisitions constitute a class 1 transaction.

Shareholder approval for all of the Acquisitions and the equity raise will be sought at a general meeting expected to be held in Q1 2020.