CHRYSAOR has agreed a merger with Premier Oil to create the largest independent oil and gas company on the London Stock Exchange.
The reverse takeover, which is subject to approval by regulators, creditors and Premier’s shareholders, will create a combined firm with around 250,000 bbl/d of oil and gas production. More than 90% of this output is from UK assets with the rest from Indonesia and Vietnam.
The deal enables troubled Premier Oil to part pay-off and cancel US$2.7bn of debt, with its creditors offered cash payments and shares in the new combined company. It comes as the oil industry reels from the drop in demand and fall in oil prices brought on by the Covid-19 pandemic.
Roy Franklin, Chairman of Premier, said: “The Board intends to recommend unanimously this transaction to shareholders as being in the best interests of shareholders and the company.”
Chrysaor, which is backed by energy investment firm Harbour Energy, has risen to prominence in the North Sea through its purchase of mature assets from oil majors including Shell and ConocoPhillips.
Linda Cook, CEO of Harbour, said: “This transaction is the next step in Harbour’s aspiration to develop a new independent E&P company with global relevance. It significantly advances our leading position in the North Sea, where we will continue to re-invest, and expands our geographic footprint to Asia and Latin America. We are excited by the Premier assets in these regions and view them as the foundations upon which to build material portfolios and further diversify the company.”
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