Source - SMW
Oil and gas producer Premier Oil said it had agreed a discounted price of $210m for its planned acquisition of the Andrew area and Shearwater assets in the North Sea from BP.

Estimated revised abandonment obligations had also been reduced, to about $240m, from about $600m.

The companies had announced in January that Premier Oil had agreed to buy the assets for $625m.

Premier Oil also said it was in talks with creditors to waive its financial covenants through to 30 September, and to provide continued access to its revolving credit facilities.

Additionally, the company said it reached a settlement agreement with largest creditor ARCM, which would see ARCM issued about 82.2m shares, representing an 8.9% stake in the company, at 26.69p per share.

Proceeds of the raising would help fund the proposed BP acquisition.


At 8:07am:

(LON:BP.) BP PLC share price was +10.75p at 346.95p

(LON:PMO) Premier Oil PLC share price was +5.95p at 37.75p



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