Prax intends to develop a sizeable upstream business in the North Sea. Credit: Prax Group.

UK-based Prax Exploration & Production has closed the acquisition of oil producer Hurricane Energy for $300.6m (£249m).

As per the deal, which was announced in March 2023, Hurricane shareholders would receive 4.15 pence for each share held in the company. This includes a dividend of 3.32 pence per share in cash (£66.1m) and a cash consideration of 0.83 pence per share (£16.5m).

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The shareholders of Hurricane will also receive a supplementary dividend of up to 1.87 pence per share in cash of £37.2m in addition to deferred consideration unit that could deliver up to 6.48 pence per share in cash of £129.1m.

Hurricane owns a 100% stake in Lancaster Oil and Gas Field located in the West of Shetland in the North Sea.

Located in blocks 205/21a, 205/22a and 205/26b of the West of Shetlands area offshore UK, the Lancaster field was discovered in 2009.

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Prax Group chairman and CEO Sanjeev Kumar Soosaipillai said: “Our long-term strategy is to be fully integrated across the oil value chain from upstream to downstream, and today marks the beginning of a new chapter for the Prax Group. 

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“The acquisition of Hurricane Energy is a natural progression for the Group, and will create unique opportunities for synergies with existing Prax-owned assets, as well as demonstrating our ongoing commitment to building a solid and transformative supply chain to meet the needs of our customers for many years to come. 

“The acquisition of Hurricane is a very significant moment in the Group’s history and a major leap forward towards achieving our goal of becoming a fully integrated global energy provider.”

Prax earlier said that the acquisition would help advance its commitment to developing a sizeable North Sea upstream business.