Premier Oil Says Price of BP Acquisitions Slashed to $210 Million Plus Targets
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
Write to Jaime Llinares Taboada at email@example.com;
(END) Dow Jones Newswires
June 05, 2020 03:08 ET (07:08 GMT)
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