Premier Oil announced it was on course to agree a $2.6bn refinancing deal by the end of this year as its shares fell 11 per cent on fears that some creditors were pulling away from the North Sea oil company.
Premier Oil(LSE: PMO) has updated the market today on its financial standing that should help investors decide whether it's worth buying, or if resources sector peers such as Shell(LSE: RDSB) and Lonmin(LSE: LMI) offer superior risk/reward opportunities.
Premier Oil is approaching oilfield services companies about helping to fund its next major projects, including a $1.5bn development off the Falkland Islands, as the heavily indebted UK oil and gas producer seeks alternatives to bank finance.
The North Sea can be a tough place to operate, as Premier Oil(LSE: PMO) knows all too well. Premier is one of the North Sea's most experienced operators, but the company is currently saddled with debt, which is constraining the business.
Premier Oil has moved a step closer to sealing the biggest debt refinancing deal in the North Sea since the oil price crash after its main lenders reached provisional agreement on terms for keeping the UK company afloat.