Premier Oil PLC (PMO.L) Update on BP Acquisitions and creditor agreements

Proposed revised terms for the BP acquisitions and agreements with creditors


· Amended terms for the acquisition of the Andrew Area and Shearwater assets (together, the “BP Acquisitions”) agreed in principle

o Cash payable at completion reduced to $210 million

o Estimated revised abandonment obligations reduced to c.$240 million (pre-tax) from c.$600 million (pre-tax)

· Principal terms being discussed with a subset of Premier’s creditors to waive the Group’s financial covenants through to 30 September and to provide continued access to its revolving credit facilities (“Stable Platform Agreement”); once agreed and finalised, the terms will be put to the wider creditor group for approval

· Settlement agreed with ARCM, the Group’s largest creditor, under which:

o ARCM will withdraw its appeal of the Court’s judgment approving the Schemes

o ARCM have undertaken to support the BP Acquisitions and the Stable Platform Agreement through the lender consent process

o Premier will issue 82.2 million new shares, representing 8.91 per cent of the enlarged Group, to ARCM at a price of 26.69p/sh, a 9.64 per cent discount to the volume weighted average price over the last five days; the proceeds from which will be used to fund part of the proposed BP acquisitions

Tony Durrant, CEO, commented:

“We are pleased to have agreed revised terms with BP for the proposed acquisition of the Andrew Area and Shearwater assets, which are materially value accretive for the Company. The Stable Platform Agreement, once agreed with and approved by lenders, will provide a basis for the Company to continue discussions regarding proposed amendments to the Group’s existing credit facilities.”

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