Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
On Monday Premier Oil (PMO) announced the sale of its Norwegian assets for $120million cash. The company will use the money to help pay down some of its sizeable debts. According to its half yearly report, Premier had net debts of just over $2billion versus cash and undrawn debt facilities of $1.5billion. The business is clearly struggling, as reflected by its share price performance over the last eighteen months. On the verge of tumbling out of the FTSE250, Premier trades at 74p (last seen) and has a market cap of £376million. If things don’t improve for Premier in the near’ish term, this could have a nasty effect on Rockhopper (RKH) and, more specifically, commercialisation of the Sea Lion discovery in the North Falklands Basin.
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