Court approves schemes of arrangement for Premier’s proposed UK North Sea acquisitions

Premier Oil has announced that the Court of Session in Edinburgh has approved the creditor schemes of arrangement required to implement the proposed UK North Sea Acquisitions, related funding arrangements and extension of the Group’s credit facilities.

 

Premier notes that the single dissenting party has announced its intention to appeal the Court’s judgment and, until that appeal process has concluded, the Group is unable to register the Court’s order with Companies House.

 

Once the Court’s order is registered the Schemes will become effective and the order will provide the necessary lender consents for Premier to carry out the proposed transactions, each of which themselves are subject to a number of conditions, including shareholder approval and the completion of an equity raise.

 

Premier continues to assess the viability of satisfying those conditions and therefore of completing the proposed transactions in light of the current market conditions.

 

The Group will provide a further update to the market in due course.

 

Tony Durrant, CEO, commented: ‘We are very pleased to have secured the Court’s endorsement. This underlines the strength of our legal case and demonstrates that we are able to use a scheme of arrangement as a mechanism to secure lender consent for transactions designed to improve the business.  

 

‘We look forward to the early disposition of the appeal so that we can proceed to register the Court’s order. We are also grateful for the continued support shown by the majority of our creditors in relation to the Schemes.’

 

Background:

On the 7th January 2020, Premier Oil announced the proposed acquisitions of the Andrew Area and Shearwater assets from BP for US$625 million, and an additional 25 per cent interest in the Premier operated Tolmount Area from Dana for US$191 million plus contingent payments of up to US$55 million.

 

Premier also announced the proposed extension of its existing credit facilities to 30 November 2023.

 

Source: Energy-pedia