Premier Oil share price surges 115 per cent as two week suspension over E.On part-acquisition lifts
Premier Oil's share price surged more than 100 per cent in early trading this morning, after the business started trading again following a two-week suspension.
Shares lept as much as 115 per cent to 41p, and closed up 89.47 per cent at 36p.
The shares were suspended on 13 January, when the energy business announced it was buying E.On's North Sea assets. Today the company resumed trading, having agreed a $15m (£10m) reduction in the payment, taking the total due to $135m.
"The proposed acquisition, which will be funded from existing cash resources, adds immediate cash generative production, realises tax synergies on Premier's current c.$3.5bn UK tax loss position and is accretive to lending covenants," the company said this morning.
However, it still has a long way to go to claw back the decline in share price over the past year.
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