Premier Oil reassures market over its loan position

Premier Oil said on Tuesday that it has received assurances that none of its senior lenders - including Lloyds Bank - have exited, or are proposing to exit, their loan position.

Premier said discussions with the various lending groups on its proposed refinancing continue to progress towards a near-term agreement of all parties.

“Premier retained significant cash and undrawn facilities of around $800m at 30 June 2016 and continues to have access to undrawn headroom under its main facility, with the agreement of its banks.”

The statement came as the stock tanked following a Reuters report that more lenders are selling out of the oil company’s syndicated loans as it struggles to complete a key refinancing that will amend loan covenants and extend maturities beyond late 2017.

At 1438 GMT, Premier shares were down 11.4% to 52.25p.