Despite the falling crude price, Premier Oil shares have surged after an update on its deal with Eon.
The company had agreed to pay $120m plus an extra cash payment on completion for Eon’s UK north sea assets, and as the deal was classified as a reverse takeover its shares were suspended.
But a tweak to the terms means Premier is now paying $15m, which changes the deal’s classification and means the company’s shares are back trading earlier than expected.
With an increase in the dividend paid to Eon ahead of completion, the extra payment has been reduced from $40m to $15m, meaning Premier will hand over $135m in all.
The news has sent Premier’s shares soaring 113% to 40.5p, although the deal still needs to be approved by Premier’s shareholders, with a vote due in March or April
