Le Lézard
Classified in: Oil industry, Business
Subjects: ACC, SHA

Update on ARCM's Response to Premier Oil's Proposed Acquisitions


LONDON, Jan. 24, 2020 /PRNewswire/ -- ARCM notes Premier Oil's announcement on the convening of scheme meetings to once again extend debt maturity and to approve the making of certain acquisitions. As detailed in ARCM's press release on 7 January 2020, ARCM has highlighted a number of concerns relating to these proposed acquisitions, which ARCM believes will expose the Company and its business to significant incremental risks (see Link).  

ARCM's opposition to these proposed acquisitions has to be considered within the context that ARCM has not previously opposed any of the Company's consent requests involving investments since it became a lender to the Company in 2016.  

Upon a review of the Company's January 7 presentation, ARCM notes that there are a number of important details which are unclear yet are critical to enable stakeholders to meaningfully assess the merits of the acquisitions.

For the benefit of all the Company's stakeholders, over the next few weeks, ARCM will pose a series of questions to the Company relating to the acquisitions. We call upon the Company to provide full and transparent responses to its stakeholders. 

To begin, we refer to the Company's statement:

 "Acquisitions forecast to generate >US$1bn FCF to end 2023"

As shown below, on p4 of the January 7 presentation, the Company made the following statement (Link):

Materially strengthens long-term financial position: 

Whilst this statement has been widely quoted by the press and sell side analysts in the coverage of the proposed transaction, we believe stakeholders need to have the answers to the following questions to fully understand how much of this FCF will flow to Premier and its stakeholders:

1) Since the transaction is back dated to January 1, 2019, is it accurate that cash flows until the closing of the Andrew and Shearwater transactions (estimated to be 2Q-3Q 2020) will remain with BP?

2) What is the estimated cash flow that will stay with BP which would reduce the ">US$1 bn FCF to end 2023" that is actually available to Premier and its stakeholders?

3) From the proposed transaction closing date in 2Q-3Q 2020 to the end of 2023, how much cash would be available to Premier and its stakeholders at the current forward curve for oil and UK gas prices?

For more information: Please visit www.arcm-premieroilscheme.com.

For media enquiries, please contact:
Greenbrook Communications 
arcm@greenbrookpr.com  
+44-(0)207-952-2000


These press releases may also interest you

at 03:05
StabiLens, based out of Potsdam, New York, has launched a brand-new website and ecommerce shop at stabilens.com. It offers customers the chance to learn about and order the Stabilens Gimbal Ring System -- A first of its kind camera attachment that...

at 03:00
ASE Technology Holding Co., Ltd. , announces its unaudited consolidated net revenues for March and 1st quarter of 2020. CONSOLIDATED NET REVENUES (UNAUDITED) Mar Feb Mar Sequential YoY (NT$ Million) 2020 2020 2019 Change Change Net Revenues 37,884...

at 03:00
The American Council of Learned Societies (ACLS) is pleased to announce the 2020 cohort of ACLS Fellows. The largest and longest running program in the organization's portfolio, the ACLS Fellowship program honors scholars in the humanities and...

at 02:09
Barbuto & Johansson, P.A. ("BARJO") and Of Counsel, Neil Rothstein, Esq. (with over 30 years of Securities Class Action Experience, including cases against ENRON and Halliburton) informs investors that a class action lawsuit has been filed, expanding...

at 02:00
iwoca research shows that British public is significantly more sympathetic towards the struggles of small businesses compared to large companies (21%)  However, nearly 70% would not use small businesses if they could save just £1 by buying from a...

at 01:34
At 8:30pm, Beijing Time, April 12 (1:30pm, UK local time, April 12), Ouhai District, Wenzhou, China, will open up for talents from all over the world, including 7 universities, 23 institutes, and multiple enterprises. The District welcomes talents of...



News published on 24 january 2020 at 02:00 and distributed by: