Premier Oil announces reverse takeover by Chrysaor

Premier Oil has announced an all-share merger with private equity-backed Chrysaor, in a deal that will pay off its creditors and create the largest independent oil and gas player on London Stock Exchange.

Chrysaor shareholders will own at least 77 per cent of the combined group, with Premier creditors taking up to 18 per cent and existing Premier shareholders left with only 5 per cent.

The deal is subject to approval by Premier shareholders and creditors.

Creditors will recover up to 75 per cent of the value of their loans to Premier in cash, or can opt for 61 per cent in cash plus shares in the new company.

Tony Durrant, CEO of Premier, commented: “There is significant industrial, commercial and financial logic to creating an independent oil and gas company of this size with a leading position in the UK North Sea. The transaction will also provide the Combined Group with a solid foundation from which to pursue a fully funded international growth strategy.”

Linda Cook, CEO of Harbour, commented: “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.”

Phil Kirk, CEO of Chrysaor, commented: “Through this deal we will become the UK’s largest London-listed independent E&P, by all key metrics. With our combined organisation and operatorship of a large part of our now international portfolio, we will have the ability to deliver value safely, and play our part in the energy transition.”