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Premier Oil shares advance as market awaits refinancing news

The shares gained around 3% in Wednesday's early deals as Premier Oil pledged it would reveal details in “the next few days”.

Premier Oil offshore platform
Improved oil prices are no doubt conducive to debt negotiations

Premier Oil PLC (LOM:PMO) shares moved positively in Wednesday’s early deals as the company promised to announce details of its refinancing in “the next few days”.

The pledge comes as Premier confirmed it latest rollover of its pending debt covenant test – with the scheduled January 31 test waived and replaced by a proposed test on February 28.

Existing debt holders have been providing leeway on covenants for many months as Premier has been working on the refinancing.

Stockbroker WH Ireland, in a note, said: “The market should be encouraged by this typically mundane monthly deferral announcement as this is the first time the company guides to when the full details should be released.”

At the end of December it owed US$2.8bn. Earlier this month, Premier Oil chief executive Tony Durrant said: “Our debt refinancing is nearing completion which, together with the improving commodity price environment, will enable us both to accelerate debt reduction and to progress future growth projects.”

In London, Premier Oil shares gained 2.5p or 2.98% to trade at 86.5p.

Quick facts: Premier Oil PLC

Price: 18.5 GBX

LSE:PMO
Market: LSE
Market Cap: £155.37 m
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