14th Jan 2016 16:29
LONDON (Alliance News) - Premier Oil PLC on Thursday said that it is taking "necessary steps" to prepare information for publication regarding E.ON's UK North Sea assets, which it has agreed to acquire, in order to restore its listing.
The company said that the proposed acquisition is currently classified as a reverse takeover under UK listing rules. Premier Oil had said earlier in the day that it is talking to the UK Listing Authority about the suspension of its shares but warned that there can be "no certainty" as to when its shares will resume trading.
The company asked for its shares to be suspended early Wednesday whilst it compiled an announcement concerning the acquisition of E.ON's UK North Sea assets, releasing news of the deal later in the day.
Premier Oil's shares remain suspended despite announcing the deal, and it is not clear when they will resume trading.
"Discussions with the UK Listing Authority remain on-going and there can be no certainty over the period that the shares will remain suspended," said the company.
Premier Oil is to pay a net consideration of USD120.0 million for the E.ON assets, funded from its existing resources, which the company hopes will add immediate cash generative production and add stable gas revenues from the UK, rebalancing its portfolio.
The assets look set to contribute a material amount of production to the company's portfolio, adding an additional 15,000 barrels of oil equivalent per day. Including the new assets, Premier Oil is expecting production to average between 65,000 to 70,000 barrels a day in 2016, compared to 57,600 barrels in 2015.
Premier Oil acquired a 5.2% in the Elgin-Franklin field, a 25% stake in the Huntington field, a 47% stake in the Babbage field and a 50% stake in the Tolmount field. Elgin-Franklin is the most notable field, producing around 114,000 barrels per day. The Huntington field acquisition is also significant as Premier will wholly-own the field following the deal, with the field currently producing 15,000 barrels a day.
By Joshua Warner; [email protected]; @JoshAlliance
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