Premier has announced the proposed acquisition of Oilexco North Sea Limited (ONSL) for $505 million together with a rights issue of New Ordinary Shares to raise approximately £171 million (approximately $252 million) (the "Rights Issue").
Premier has today also released its annual results for the year ended December 31, 2008, contained in a separate announcement.
Premier has agreed to acquire ONSL, an oil and gas exploration and development company with interests in the UK North Sea, for $505 million in cash. The acquisition:
ONSL, the principal operating subsidiary of Oilexco Inc., with interests in significant producing fields including Balmoral, Brenda, Nelson and Nicol is:
Fully underwritten Rights Issue to raise £171 million (approximately $252 million):
Balance of Acquisition funded from new credit facilities and existing cash resources:
Enlarged Group's balance sheet remains robust, with estimated $385 million liquidity at Completion, providing flexibility to execute the Enlarged Group's investment program.
Commenting on today's announcement, Sir David John KCMG, Chairman of Premier, said, "This is the most exciting development in Premier's recent history and offers the potential to create substantial value for our shareholders. The acquisition contributes significantly to Premier's strategic objective of growing production and cash flow. We will also maintain our high-impact exploration programme and continue to review selected value adding acquisitions within core areas."
Simon Lockett, Chief Executive, commented, "The acquisition of ONSL significantly expands our presence in the North Sea. It secures an attractive, high growth North Sea focussed business and delivers synergies with our existing North Sea assets at a compelling valuation of less than $8.50 per barrel.
"ONSL's complementary asset base significantly enhances our near-term production profile and cash flow and gives our North Sea business critical mass alongside that of our existing Asian assets. I am also pleased to end the uncertainty around the administration process for the employees of ONSL, who will have a continued and vital role in the future of Premier.
"With our conservative financing strategy, ample liquidity and an exciting drilling program ahead, I am confident in the continued success of the Premier group."
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