Premier Oil Plc has confirmed it is looking to buy UK North Sea assets, following a report in the Sunday Times that said it was reaching out to shareholders to help it fund the acquisition of $1.5 billion worth of oil fields.
Shares in the British company fell by as much as 12.5% following the report, making it the top loser on the UK midcap index.
Premier Oil was competing for field being sold by US firm Chevron Corp and is said to be considering a rights issue or share placing to help pay for the project if its wins the auction, according to the Sunday Times report.
On Monday, the British oil and gas company confirmed it is looking at opportunities in the North Sea but had not made a decision on assets from Chevron or how any deal would be financed.
A trading update last week showed the company has cut debt to $2.3 billion at the end of 2018, below previous forecasts of $2.4 billion.