North Sea producer Premier Oil revealed this week it was on schedule to close its reverse merger with fellow UK-based explorer Chrysaor by the end of March following the receipt of regulatory and antitrust approvals. The merger would create the largest independent producer in the North Sea with 254,000 BOED—more than one-eighth of total UK output.
“Following the positive creditor vote on 22 February, the transaction remains subject to sanction by the Scottish Court of the restructuring plans expected to take place on 19 March,” said Premier in a statement.
The merger will give privately held Chrysaor a 77% stake in the combined entity. The remaining 23% will be held by Harbour Energy, a Houston-based upstream investment subsidiary of private equity group EIG Global Energy Partners.
Assuming the Scottish Court sanctions the restructuring plans, Premier expects the Transaction to complete on 31 March with Premier’s shares to be readmitted to trading on 1 April as Harbour Energy plc.
Chrysaor’s portfolio will expand beyond UK waters as a result of the merger. With Harbour’s and Premier’s existing assets included, the company will hold interests in acreage offshore Mexico, Brazil, Vietnam, Indonesia, and Norway.