By Jaime Llinares Taboada

Premier Oil PLC said Friday that the price for the North Sea assets acquisition from BP PLC has been halved to $210 million plus $115 million in target-based payments, and that it is raising $27.5 million via share issuing to fund part of the transaction.

The oil-and-gas company said BP has agreed to amend the terms for the acquisition of the Andrew Area and Shearwater assets in the U.K. North Sea, cutting the original consideration of $625 million by around $300 million plus a further $115 million payable based on higher future oil and gas prices.

In addition, the expected abandonment obligations have been reduced to $240 million from $600 million.

The group said it will issue 82.5 million new shares to its largest creditor at a price of 26.69 pence (33.6 cents) a share, representing a 9.6% discount to the volume weighted average price over the last five days.

Premier Oil said it is discussing with some creditors about waiving financial covenants through September--the expected date for completion--and providing continued access to revolving credit facilities.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

June 05, 2020 03:08 ET (07:08 GMT)