Premier Oil and Chrysaor create biggest indy oil firm

Premier is to merge with Harbour’s UK operating company Chrysaor, creating the largest independent oil and gas company listed on the London Stock Exchange.

The all-share deal will create a company with combined production of over 250 kboepd (as at 30 June 2020).

It will have significant scale and diversification through the combination of production hubs in the UK North Sea.

The group will have combined 2020 H1 revenue of $1.76 billion and H1 EBITDAX of $1.27bn.

The deal will be classed as a reverse takeover that will retain Premier’s London listing.

A cash payment of $1.23bn will be made to financial creditors of Premier and its subsidiaries.

Premier’s stakeholders will own up to 23% of the combined group and Harbour and other Chrysaor shareholders owning at least 77%.

Premier’s shareholders are expected to own up to 5.45%.

Chrysaor’s largest shareholder, Harbour, is expected to own up to 39.02%.

The board will comprise 11 directors including six independent non-executive directors and three executive directors including Linda Z. Cook (currently CEO of Harbour) who will be CEO and Phil Kirk (currently CEO of Chrysaor) who will be President and CEO Europe; the two other non-executive directors will be appointed by Harbour.

Source: dailybusinessgroup.co.uk

Read the latest issue of the OGV Energy magazine HERE.