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 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...