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 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Oil tanker with $100 million cargo goes missing off Texas coast
- 3 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 4 Saudi Arabia executes 19 in one half of August in 'disturbing surge of beheadings'
- 5 Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...