Harbour Energy Share Discussion Threads

[steve73] 05/6/2020 07:04

With a current m-cap of 267MM ($340 MM) this "deal" is equivalent to around 60% of the current business.

Previously the whole deal would have added production based on 23kboepd for everything in 2019; 18kbpoed from Andrew (maybe a little less now at these lower OP's), plus (I assume) the balance from the Shearwater share. Tolm't wasn't expected to be in production until end of this year, and doesn't appear to now be included anyway.

I'm also guessing that the reserves from the BP assets will be significantly less at the current low O/P, but overall IMO, this is a MUCH better deal now than as proposed in Jan.

[oilretire] 05/6/2020 07:00

Cash payable upon completion has been reduced from $625m (£493m) to $210m (£165m).

The original sum, at the effective date of January 1 2019, will be offset by BP keeping $300m of interim cash flows, while another $115m would only be payable upon higher future oil and gas prices.

So $300m cash staying at BP so real cost of the assets (paid on completion) has been reduced from $325m to $210m

But we'll pay that 'saved' $115m back up to the $325m price tag if and when oil & gas prices recover to agreed point.

Is that correct way to read it?

[patience a virtue] 05/6/2020 06:51

hxxps://www.energyvoice.com/oilandgas/north-sea/243893/premier-oil-strikes-new-deal-to-buy-bp-north-sea-assets/

Premier Oil has renegotiated its deal to buy a series of North Sea assets from BP and ended a dispute with its largest creditor.

The firm struck a deal with BP in January to buy the Andrew Area and BP’s stake in the Shearwater hub in a deal worth £475million.

However, new terms, have been agreed in principle due to the collapse in oil prices and Premier’s legal battle with Asia Research Capital Management (ARCM), who argued the firm should focus on cutting its debts, rather than making acquisitions.

Cash payable upon completion has been reduced from $625m (£493m) to $210m (£165m).

The original sum, at the effective date of January 1 2019, will be offset by BP keeping $300m of interim cash flows, while another $115m would only be payable upon higher future oil and gas prices.

In addition, BP will retain 100% of the Shearwater abandonment costs and 50% of Andrew, meaning Premier’s pre-tax costs will be around $240m rather than $600m.

Thanks to the new terms, ACRM has withdrawn its appeal against the Scottish court’s approval of the debt schemes to pay for the deal.


Tony Durrant, CEO of Premier Oil
The deal requires that Premier will issue 82.2million of new shares, representing 8.9% of the company, with the proceeds of $27.5m used to part-fund the deal, while ACRM will use the shares to reduce its current short position.

Premier is also making “good progress” on the “Stable Platform Agreement”, a deal with lenders on 40% of its debt facilities, which mature in May 2021.

Chief executive Tony Durrant said: “We are pleased to have agreed revised terms with BP for the proposed acquisition of the Andrew Area and Shearwater assets, which are materially value accretive for the Company.

“The Stable Platform Agreement, once agreed with and approved by lenders, will provide a basis for the Company to continue discussions regarding proposed amendments to the Group’s existing credit facilities.”

Premier also struck a deal to pay Dana Petroleum up to £185 million for a further 25% of the Tolmount gas project in the southern North Sea, taking it to 75%.

[stockport loser] 05/6/2020 06:50

clearly says funded out of equity, placing and rights issue?

[steve73] 05/6/2020 06:48

So the 82MM shares at 26.69 will raise a shade under $30MM. Perhaps the remaining $180MM can be funded out of our cash reserves, income, &/or loan headroom.

No mention of the Tolmount part.. perhaps with the very low UK gas prices they've reconsidered that.

[molatovkid] 05/6/2020 06:45

$210m in new shares is the read across to complete the BP deal ?

[oilretire] 05/6/2020 06:35

Time to waken up again I guess.

Not ideal is it Steve, lets them off the hook somewhat but I guess there must have been some tough negotiations going on to break the stalemate. Good to move forward with certainty now at least.

So from the headline on the original announcement 'Andrew Area and Shearwater assets from BP for US$625 million'

What's the read across to today's deal?

And are they re negotiating the other deal announced at the same time? Tolmount Area from Dana for US$191 million plus contingent payments of up to US$55 million

[jelenko] 05/6/2020 06:32

A lot higher than 30p I suspect. This is good news, a bit disappointed that we have helped ARCM close part of their position, but that is business, they were in fact over a barrel once BP had reworked the deal. Still leaves a large short that will need closing at some point, unless they are involved in the later equity raise, which I guess is possible. Onwards and upwards !

[steve73] 05/6/2020 06:22

So ARCM to be given (sorry - sold at a pittance) approximately half the number of their short.

Wonder what price the rest of the funds necessary will be raised at..?

[markymar] 05/6/2020 06:20

ARCM will use the new shares to reduce its current short position (latest reported being 16.69 per cent).

[leoneobull] 05/6/2020 06:17

Premier Oil PLC05 June 2020Premier Oil plc("Premier" or "the Group" or "the Company")Proposed revised terms for the BP acquisitions and agreements with creditors5 June 2020Highlights -- Amended terms for the acquisition of the Andrew Area and Shearwater assets (together, the "BP Acquisitions") agreed in principle o Cash payable at completion reduced to $210 milliono Estimated revised abandonment obligations reduced to c.$240 million (pre-tax) from c.$600 million (pre-tax)-- Principal terms being discussed with a subset of Premier's creditors to waive the Group's financial covenants through to 30 September and to provide continued access to its revolving credit facilities ("Stable Platform Agreement"); once agreed and finalised, the terms will be put to the wider creditor group for approval -- Settlement agreed with ARCM, the Group's largest creditor, under which: o ARCM will withdraw its appeal of the Court's judgment approving the Schemeso ARCM have undertaken to support the BP Acquisitions and the Stable Platform Agreement through the lender consent processo Premier will issue 82.2 million new shares, representing 8.91 per cent of the enlarged Group, to ARCM at a price of 26.69p/sh, a 9.64 per cent discount to the volume weighted average price over the last five days; the proceeds from which will be used to fund part of the proposed BP acquisitionsTony Durrant, CEO, commented:"We are pleased to have agreed revised terms with BP for the proposed acquisition of the Andrew Area and Shearwater assets, which are materially value accretive for the Company. The Stable Platform Agreement, once agreed with and approved by lenders, will provide a basis for the Company to continue discussions regarding proposed amendments to the Group's existing credit facilities."

[jelenko] 05/6/2020 06:00

Luck should have no part to play in the stock market.

[andypop1] 04/6/2020 22:26

PMO get a mention.

hxxps://www.energyvoice.com/oilandgas/north-sea/243551/torrid-times-in-the-north-sea-may-favour-private-equity/

Good luck.

[markymar] 04/6/2020 20:39

You forgot to mention the troll Stan,posted 3 times on Enquest attention seeking all must have him on filtered as all ignored all day or voted down,I see he is crying for attention tonight on here,put him on filter Marvin goes and we get another resident nutter Stan the keyboard warrior

[wageslave] 04/6/2020 19:56

A tad sceptical of the return fig of 15% myself as could fluctuate with the PoO. Also, think it's designed to entice you into a subscription, but positive nevertheless.

[adg] 04/6/2020 19:40

Wageslave sorry but you are not allowed to post anything even slightly positive about pmo on here - you will now be doomed to a 3 month sentence of being stalked by our resident gimp-troll... lock yer doors, secure your drawers and clench your bum cheeks as the man stalking gimp wilL soon no doubt be let loose on you
bad bull!
Some news Over next fortnight imho

[wageslave] 04/6/2020 19:21

Not sure if this has been shared or not?Shares in Premier Oil (LON:PMO) are currently trading at 31.53554 but a key question for investors is how the economic uncertainty caused by Coronavirus will affect the price. One way of making that assessment is to examine where its strengths lie...https://www.stockopedia.com/articles/what-will-move-the-premier-oil-share-price-56388/

[dodge meister] 04/6/2020 15:10

A woosh for GKP and HUR, may be PMO time soon.

[adg] 04/6/2020 08:42

For those that are not trading on margin, and have more patience than the average short term whippersnapper that seems to be the norm nowadays, I am confident that PMO will survive and that at some point in the medium term the share price will be substantially higher than it is today (assuming oil stays at or higher than present levels and that another natural disaster or second wave COVID-19 doesn’t happen)
I also have a feeling we may well get some news update from PMO soon...

[leoneobull] 04/6/2020 05:25

I put article about decline of shalehttps://www.ft.com/content/bf230420-a570-4fcb-a2cf-3c38b5429b6f