Premier Oil started the year in buoyant mood (Emily Gosden writes). With shares worth about 100p, the North Sea-focused producer unveiled $871 million of proposed acquisitions to boost its production and cash flow and help it to pay down its near-$2 billion debt. The plan required a $500 million equity raise and was tied to an extension of its debt repayment deadline, from May 2021 to November 2023.
All this looked plausible with oil prices at more than $60 a barrel. Then the coronavirus hit, destroying demand for oil, and the Saudis increased output. Prices fell by two thirds and Premier’s shares fell even further; to less than 15p in March. With oil still less than $30 a barrel yesterday, Premier’s shares were languishing at