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Montevideo, February 26th 2021 - 05:03 UTC

 

 

Premier Oil becomes Harbor Energy; merges with Chrysaor to make North Sea's largest oil and gas producer

Wednesday, January 13th 2021 - 09:33 UTC
Full article 8 comments
Premier Oil has interests in Indonesia, Vietnam, the Falklands and exploration and appraisal operations in Alaska, Brazil and Mexico. Premier Oil has interests in Indonesia, Vietnam, the Falklands and exploration and appraisal operations in Alaska, Brazil and Mexico.

Premier Oil announced on Tuesday that shareholders voted in favor of a reverse takeover of private equity-backed Chrysaor to create the British North Sea’s biggest oil and gas producer in which Premier shareholders will hold about 5.5%.

“Shareholder approval for the transaction deal has now been received,” said Premier, which will be renamed Harbor Energy but maintain its London listing. Premier Oil has interests in Indonesia, Vietnam, the Falklands and exploration and appraisal operations in Alaska, Brazil and Mexico.

Creditors of Premier, which has net debt of US$ 1.9 billion, will receive US$ 1.2 billion in cash under the merger and debt restructuring plan from a new debt facility and existing cash from both groups.

This on average represents a payout of around 61 cents for each dollar owed, the prospectus said. They can also elect to receive further shares representing up to 18% of the new group, or a cash alternative bringing the payout to around 75 cents.

Premier said the creditor vote is expected on 22 February. “As previously announced, the requisite level of Premier’s creditors have irrevocably undertaken to vote in favor of the restructuring plans,” it said.

Premier also announced that it has received Vietnam antitrust approval in relation to the transaction. In addition, the regulatory condition regarding Premier’s license interests in the Falkland Islands has been satisfied.

The transaction operation remains subject to, amongst other things, formal approval by the Company’s creditors and sanction by the Scottish Court of the Scottish restructuring plans in respect of the Company and Premier Oil UK Limited.

The Scottish convening hearing is expected to take place on 25 January 2021 and the creditor vote on 22 February. All of Premier’s cross currency hedge counterparties have entered into a binding support letter which means that the English restructuring plan in respect of Premier Oil Holdings Limited is no longer required.

Premier continues to expect the deal to be completed by the end of Q1 2021.

Top Comments

Disclaimer & comment rules
  • HansF

    This is good news for the British oil industry, which I hope bowses other companies like BP, whose share price is still around 50% of what it was before in mid-2018.

    The market needs to hear the company's plans, innovations and strategies. That is what attracts investors and what will allow BP to get out of the laconic situation in which it is today.

    Jan 13th, 2021 - 12:26 pm 0
  • Dirk Dikkler

    @“Think”, People in Glass Houses Shouldn't throw Stones, What about the last Two decades Argentina has spent trying to realise the VAST Deposits of Vaca Muerta ! What a TOTAL BUST !!

    Jan 14th, 2021 - 10:49 am 0
  • portman

    it's called spin think. all entities do a little propaganda. necessary to keep the wheels oiled (excuse the pun).

    Jan 14th, 2021 - 11:50 am 0
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