Shares in Premier Oil soared 13 per cent this morning after the UK oil company announced it will buy two major North Sea assets from BP for $625m.
The oil and gas firm said it is planning to buy the Andrew Area and Shearwater assets from competitor BP, as well as an extra 25 per cent interest in the Premier operated Tolmount Area from Dana for $191m.
Premier, which this morning reported that 2019 production was at the upper end of full-year guidance at 78,400 barrels of oil equivalent per day, said the acquisitions will add an extra 23,000 barrels of equivalent per day of cash generative production.
The proposed acquisitions are expected to be funded through a $500m equity raise, existing cash and a loan of $300m if needed.
Shareholders will vote on the proposed deal at a general meeting to be held in the first quarter of this year.