Premier-Chrysaor on Track to Close March 31

Premier Oil will complete its merger with fellow UK producer Chrysaor on March 31, the company said while reporting its 2020 financial results on March 18. Shares in the combined entity Harbour Energy, named after Chrysaor's parent company, will be readmitted for trading on April 1.

Shareholders and creditors have approved the deal, which is set to create the UK's biggest oil and gas company by production. Regulatory conditions have also been satisfied and antitrust clearances granted. A court sanction hearing is scheduled for March 19, however.

Premier produced 61,400 barrels of oil equivalent/day of oil and gas in 2020, versus 78,400 boe/d during the previous year, and it expects to lift 61,000-66,000 boe/d in 2021, excluding output at Chrysaor. The company's operating cash flow come to $630mn, compared with $1.08bn in the previous year, while its debt reached $2.08bn at the end of last year. It booked an after-tax loss of $1.3bn, on the back of one-off non-cash charges.

Chrysaor also reported its results for last year, announcing $1.78bn in Ebitdax, up from $1.69bn in 2019. It too suffered an after-tax loss of $778mn for the year, however, marking a reversal from a $218mn profit in 2019. The company flowed 173,000 boe/d of oil and gas last year, representing a dramatic climb from 137,000 boe/d in 2019. It expects to produce 140,000-155,000 boe/d in 2021.

Premier's capital expenditure for 2021 is set at $300mn, while Chrysaor's capital spending is budgeted at $750-850mn.