Premier in $871 million swoop on North Sea assets
Tony Durrant: deals in line with stated strategy
Premier Oil has unveiled three acquisitions in the North Sea worth $871m as it seeks to consolidate assets in the region.
It is acquiring the Andrew Area and Shearwater assets from BP for $625 million, and an additional 25% interest in the Premier-operated Tolmount Area from Dana for $191m plus contingent payments of up to $55m.
Premier has announced the proposed extension of its existing credit facilities to 30 November 2023.
It said the acquired assets will generate more than $1 billion of free cash flow to end 2023
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. It expects to confirm the structure and terms in Q1 2020 following consultation with major shareholders.