The announcement comes just weeks after Premier deepened its interest in the field by snapping up a further 3.75pc interest from Maersk Oil for $11.7m, implying a far stronger valuation in the sale than Premier agreed last month. The news sparked a late 5pc share price spike from negative territory to 1.5p higher than the previous close to 56.50p. The deal will push Premier back into talks with its vast lender group after a gruelling one year financial restructuring process which drew to a close over the summer. Under the terms of the deal Premier has until 31 May 2021 to repay its debt and has agreed to keep its net debt at 8.5 times its earnings until 31 December 2017, before reducing gradually to 3 times its earnings in 2019.
Oil and gas explorer Premier Oil is preparing to sell off its entire stake in Wytch Farm, the largest onshore oilfield in western Europe, for $200m, as it seeks to reduce its $2.7bn debt pile. The 33.8% stake will be sold to independent North Sea explorer Verus Petroleum, according to reports.