Premier snaps up Oilexco's North Sea fields for $505m cash
Thursday 26 March 2009
Premier Oil wants to buy the North Sea assets of the troubled Canadian exploration group Oilexco for $505m (£347m) in cash.
The deal will be funded in part by a £171m rights issue offering Premier investors four new shares at 485p for every nine held, a discount of 49 per cent on Tuesday's closing price. The rest will come from new debt facilities.
Oilexco, which is listed in London and Toronto, has been hit by plummeting oil prices and the scarcity of credit finance. The group abandoned an attempt to raise $186m in bond and shares in November and put its UK arm into receivership in January after its banks said they were no longer willing to advance funds.
Premier will acquire Oilexco North Sea Ltd free of debt and infrastructure commitments. The deal will add 13,700 barrels of oil equivalent (boe) to Premier's daily production this year, and some 60 million boe to the group's reserves.
The announcement of the proposal pushed Premier's shares up by more than 10 per cent to 1,055p yesterday.
- 1 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 2 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Teenagers irritable because early school hours mess with their biological clocks
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Isis could become 'world’s first truly terrorist state' and bomb UK with nuclear and chemical weapons, Theresa May warns
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...