Premier Oil, a UK-based oil and gas company which has been working on debt refinancing for months, has made a crucial step in its efforts.
The company on Tuesday said its schemes of arrangement had received final sanction at a hearing of the Court of Session in Scotland.
Following the sanction of the schemes, the refinancing is expected to become effective on July 28,2017, Premier said.
Prior to the court sanction, Premier Oil had received approvals for the terms of the proposed refinancing from Premier’s shareholders, Scheme Creditors and convertible bondholders.
In an operational update last week Premier said it had reduced net debt to $2.74 billion (2016 FY: $2.77 billion) with positive free cash flows for the period being offset by translation differences on non-dollar denominated debt.
“As at June 30, Premier retains significant cash and undrawn facilities. For the full year, as previously stated, Premier expects to be cash flow positive after capex and planned disposals at oil prices above $50/bbl, driving net debt reduction. As capex commitments (including the completion of the development phase of the Catcher field) reduce, debt reduction will accelerate,” Premier said last week.
Also, Premier Oil shares were boosted last week after the announcement that the company had with its partners Talos and Sierra struck a billion-barrel oil discovery in Mexico.
Offshore Energy Today Staff