UK-based energy explorer Premier Oil can move ahead with its plan to extend debt maturities and buy gas fields in the North Sea, a Scottish court ruled on Wednesday.
Judge Sarah Wolffe ruled the company can proceed to a creditor vote on a proposed change in terms on $2 billion-worth of debt. The ruling strikes down a challenge by Premier Oil’s largest creditor, Asia Research & Capital Management.
Last week, Premier revealed it had struck deals to buy £660 million worth of North Sea oil and gas fields, including stakes in the central North Sea Andrew and Shearwater fields.
Today’s decision clears the first hurdle for Premier Oil, which now needs to achieve at least 75% of support from creditors in order to proceed.
Premier Oil’s shares jumped after the ruling to hit an intraday high at 117 pence, a 2% gain on the day.