Premier Oil’s shares more than doubled in value after trading resumed this morning following a suspension caused by the acquisition of E.ON’s North Sea assets.
The UK independent had suspended its shares on January 13 after agreeing to buy E.ON’s North Sea assets for $120m.
It said the cost of the deal would now come to $135m, as a result of an increase of the dividend paid to E.ON prior to completion.
The company’s share price was up by 128% by 10am.
Premier will acquire interests in licence in the Central North Sea, West of Shetland and the Southern Gas Basin.
Premier said the deal allowed them to “generate significant operating and cost synergies across the combined UK North Sea business as well as increasing its presence in the Central North Sea.
The company intends to publish a shareholder circular and notice of meeting in due course, with a shareholder vote to follow during March/April.
The proposed acquisition is also subject to the approval of Premier’s US Private Placement noteholders and lending banks.