Premier Oil is expected to update the market on Thursday regarding its long sought restructuring plans.
The independent operator has spent the last half of 2016 trying to batter out a new agreement with its lenders. It’s net debt sits at $2.6billion or five times its EBITDA. The figure is significantly higher than its syndicate’s agreed 4.75 agreed debt ratio.
Its syndicate is thought to include four different lender groups made up of 40 different banks and advisors.
Despite the financial hardship, the North Sea explorer is on the cusp achieving first oil from its Catcher field.
The final word on its lending position would cap an eventful 12 months for the firm.
In January last year, Premier temporarily suspended its shares as it hammered out a $120million deal for E.On’s North Sea assets. In April, it confirmed first oil from its Solan development, which was slotted to produce between 20,000 and 25,000 barrels of oil per day.
The lending terms are expected preserve the firm’s existing facilities and provide headroom until after the North Sea Catcher field comes on-stream later this year. Catcher’s capex now tops $1.7billion, which is 24% lower than when it was sanctioned.
The final details of its refinancing are believed to be circulating among Premier’s private lenders now.
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