(Correcting that Premier Oil is not purchasing the 25% interest in Tolmount.)
(Alliance News) - Premier Oil PLC said Thursday its creditors have approved its acquisition of the Andrew Area and Shearwater fields in the UK North Sea from oil major BP PLC under amended terms.
In early June, the oil & gas company proposed amended terms to the acquisition, which would include the original payment of USD625 million being set off by USD300 million of estimated cash flows to be retained by BP, and a further USD115 million to only be payable based on higher future oil and gas prices.
As a result, the revised cash to be paid on the completion of the acquisitions will be USD210 million and is expected to be funded with Premier Oil equity.
In addition, BP will retain 100% of the existing Shearwater abandonment costs and 50% of the existing Andrew Area abandonment costs.
Also, Premier Oil agreed with Asia Research Capital Management for the creditor to withdraw its appeal of the court's judgement approving the scheme required for the acquisition, in return for 82.2 million shares issued by the company at a price of 26.69 pence each.
Shares in Premier Oil were down 0.1% at 50.04 pence on Thursday in London. BP shares were up 0.2% at 309.95 pence.
The deal now remains conditional on the refinancing of Premier's existing credit facilities, equity funding and approval, including that of shareholders.
Separately, Premier Oil said it will not be purchasing an additional 25% interest in the Tolmount gas field in the UK North Sea from Dana Petroleum, following the termination of the escrow agreement at the end of June.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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