Premier Oil announced that its lenders have agreed the terms of refinancing its $2.8bn (£32.28bn) debt, with approval scheduled for early February.
After nine months of talks over the company's debt pile in one of the most complex financial restructuring deals in the North Sea's history, the lenders came to an agreement.
The lender group consisted of 40 banks and teams of advisers that make up around 80% of Premier's investors.
The deal will give the explorer a boost after a two-year downturn in the oil market.
"The terms really haven't moved much in the last few months. We're now into the rather painful process of paperwork but by mid-February we should have entered into lock-up with our private lenders," said chief executive Tony Durrant.
The group said that the lenders will be offered equity warrants to increase the attractiveness of the deal but that offer would be a small part of the refinancing and would not be dilutive for existing shareholders.
The company got caught up in debt following heavy investments in new oil projects and the acquisition of fields from German energy giant Eon, just as oil prices
fell to 12-year lows.
The group has however made up for the investment through its production of 71.4 thousand barrels of oil equivalent per day (kboepd) in 2016, up 24% compared to the previous year. Estimated capital expenditure (capex) was also below guidance of $730m at $690m.
The explorer is hoping to increase that to 75 kboepd in the year ahead by boosting production in its lagging Solan oilfield and starting a new North Sea project.
The approval of Tolmount development concept is expected shortly which the group anticipate will provide the next phase of growth. It has also increased its equity interest to 25% in large Zama prospect in Mexico; expected to spud early in the second quarter.
Catcher, a floating production rig west of the Shetland Islands, is on schedule for start-up later this year with total capex forecast at $1.6bn, 29% lower than the sanctioned estimate.
Cash and undrawn facilities stood at around $600m. Net debt of $2.8bn as at 31 December 2016 reduced in the fourth quarter as anticipated. The management expect net debt to continue to reduce at the current forward interest rate curve.
Durrant said:"Premier achieved a strong operational performance in 2016, resulting in record production and the successful integration of the ex-E.ON portfolio. The Catcher project continues to progress well and will provide another step change in production, generating enhanced, tax-free cash flows for the Group.
"Our debt refinancing is nearing completion which, together with the improving commodity price environment, will enable us both to accelerate debt reduction and to progress future growth projects."
The share price rose 1.37% to 92.75p at 1620 GMT on Thursday.