1st Oct 2020 10:27
(Alliance News) - Premier Oil PLC on Thursday said its creditors have agreed to waive its financial covenants through to November 5 while talks continue.
The oil and gas company, with its registered office in Edinburgh, has operations in a number of countries including Mexico, the UK, Vietnam, and Brazil.
On September 15, Premier Oil announced it was in talks with North Sea oil and gas producer Chrysaor Holdings Ltd and other parties, as it looked to secure long-term debt refinancing. Prior to this, in August, the company announced that it had agreed heads of terms for a long-term refinancing of over 45% of its debt facilities.
The company planned to raise a further USD300 million in equity, in addition to the USD230 million it already announced to fund the proposed acquisitions of certain BP PLC assets in the Andrew area and the Shearwater field in the North Sea. The refinancing was conditional on at least a USD325 million take-up of the equity raise.
Talks relating to the proposed refinancing are continuing, as are talks for "possible alternative transactions".
Premier Oil said its creditors have approved an extension of its stable platform agreement, with financial covenants now waived until November 5.
Shares in Premier Oil were down 0.3% at 16.55 pence in London on Thursday morning.
By Anna Farley; [email protected]
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