Premier Oil shares rebound after company reassurance

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Investors in Premier Oil are feeling reassured.

Shares in the North Sea oil producer are topping the FTSE All Share this morning, with an 8 per cent rebound after dropping 30 per cent since January 20th.

The company released a statement on Friday afternoon saying that it noted the recent fall in its share price, as the company has grappled with refinancing its hefty debt pile.

Premier said “good progress” was being made with its refinancing plans. It added that it was finalising agreement on the amended terms of its convertible bonds “with additional significant bondholders who are also expected to lock up shortly”.

It said that current operational performance “remains strong” and said it expected to give a refinancing update in the next few days.

Premier Oil failed to effect a long-term share price turnaround at the beginning of February, when it said it expected to complete its debt refinancing in May.

The company, one of the largest independent producers in the North Sea, was in negotiations with its lenders for more than nine months to refinance its debt, which stood at $2.8bn at the end of December.

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