Premier Oil has announced that it had received the ‘requisite level of support’ from its creditors for the proposed all-share merger with Harbour Energy’s UK operating company Chrysaor.

Premier Oil has also received approval for the reorganisation of its ‘existing finance arrangements with those creditors entering into a binding support letter’.

Last month, Premier Oil signed an agreement with Chrysaor regarding the proposed merger.

The deal is expected to create the largest independent oil and gas company listed on the London Stock Exchange (LSE), with combined production of over 250,000 barrels of oil equivalent per day (boepd).

Premier Oil said in a statement: “Under the support letter the creditors have, among other things, irrevocably undertaken to vote in favour of the court-approved restructuring plans, and have agreed to waive Premier’s financial covenants until completion of the transaction.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“As such, the merger agreement between Premier, Harbour, funds managed by EIG and Chrysaor has been released from escrow.”

The reverse takeover deal will ensure that Premier’s creditors are paid $1.23bn in cash.

Premier Oil noted that the transaction is expected to be completed in the first quarter of next year.

Chrysaor shareholders will have at least a 77% ownership with Premier shareholders, taking up to 5.45% of the combined group. Other Premier stakeholders will make up the rest of the ownership.

Harbour Energy, Chrysaor’s largest shareholder, will own approximately 39% of the combined entity.