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    Premier Secures Backing for Financing Deal


The company has got banks to finance its UK acquisitions.

by: William Powell

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Natural Gas & LNG News, Europe, Corporate, Mergers & Acquisitions, Exploration & Production, Financials, News By Country, Ukraine

Premier Secures Backing for Financing Deal

UK independent Premier Oil has secured the approvals needed for its acquisition of some of BP's and Dana Petroleum's UK assets, it said February 12. Last month it said it would seek a $500mn equity raise for the combined $870mn price, as well as a $300mn bridging loan, to add to its own cash. 

RBC and Jefferies have entered into a standby underwriting agreement, which is expected to remain in place until the publication of the combined prospectus and circular, at which point it is to be replaced by a definitive underwriting agreement. The standby underwriting agreement provides that the price of the new Premier shares to be issued in connection with the equity raise will be agreed by Premier.

Premier said it expected to net around 23,000 barrels of oil equivalent/day of production from the deals in 2019, with development upside, as well as $1bn of free cash flow by the end of 2023. They will also add 82mn boe to Premier's reserves and contingent resources at a cost of under $10/boe.