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Premier Oil shares lose ground as market continues to await more news on key refinancing

Published: 14:03 06 Dec 2016 GMT

Oil rigs
With a lack of any fresh news, Premier shares were down over 4%, or 2.75p at 63.75p in afternoon trading

Shares in Premier Oil PLC (LON:PMO) lost ground today as the market continues to await news on the debt-laden exploration and production company’s key refinancing.

With a lack of any fresh news, Premier shares were down over 4%, or 2.75p at 63.75p in afternoon trading.  

Technical analyst Zak Mir, however, thinks the shares could rally up to 80p.

In a Tip TV segment for Proactive Investors, Mir said: “I’m going for a glass half full scenario, so basically if we can hold above 50p area then [I see a rally up to] the top of the range at 80p.

“But,” he added, “I would understand if some traders decided they didn’t want to get involved, unless it broke 80p.”

Mir concluded: “Presumably the big breakout won’t happen until the debt issue is finally sorted out.”

Last week Premier Oil confirmed that it continues to receive leeway from its lenders as it works on a refinancing deal.

The oil company told investors that it had received a monthly deferral of a stress-test on its financial covenants, with what would’ve been a test on the twelve month period ending November 30 rolling over to a new test for the year to December 31.

It also said it expects it will continue to receive monthly deferrals until negotiations conclude with its lending group.

Premier added, however, that good progress was being made towards finalising the revised terms of financial facilities and agreements.

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