14th Jan 2019 06:54
LONDON (Alliance News) - Premier Oil PLC is considering raising funds to buy an about USD1.5 billion package of oil and gas fields in the North Sea from US major Chevron Corp, The Times reported on Sunday.
The newspaper said the explorer intends to fund the deal through a rights issue or a share placing. The company also is considering selling all or part of its Latin American business to help pay for the deal.
The Times noted that Premier's shares have slumped from 500 pence in 2011 to less than 80p last week, valuing the company at below GBP650 million and making an equity fundraising a "tough sell".
The USD1.5 billion price tag is roughly twice Premier's market value. The Times said observers believe the company could make the pitch that the Chevron package would allow it to transform its sprawling portfolio into one more centred on the North Sea.
Premier produces 80,000 barrels of oil a day from fields in the UK, Pakistan, Vietnam and Indonesia.
https://www.thetimes.co.uk/article/premier-oil-led-by-tony-durrant-in-cash-call-for-north-sea-fields-dtlq55bd9
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