{"id":10789,"date":"2020-10-15T09:32:18","date_gmt":"2020-10-15T09:32:18","guid":{"rendered":"https:\/\/www.westwoodenergy.com\/?p=10789"},"modified":"2022-09-07T02:54:16","modified_gmt":"2022-09-07T01:54:16","slug":"premier-oil-reverse-takeover-by-chrysaor","status":"publish","type":"post","link":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor","title":{"rendered":"Premier Oil \u2013 reverse takeover by Chrysaor"},"content":{"rendered":"

Premier has recommended that its investors accept a reverse takeover offer from Chrysaor creating an E&P company with 245,000 boe\/d of production. Premier will retain its stock market listing, but its existing equity investors will only own c.5% of the merged company while its bondholders will get between 61-75 cents cash in the US$ owed to them. <\/span><\/span>\u00a0<\/span> <\/strong><\/p>\n

The deal consolidates Chrysaor\u2019s position as the number one UK producer. Premier\u2019s North Sea assets are a good\u00a0<\/span><\/span>fit<\/span><\/span>\u00a0and the combined portfolio will provide synergies, with Chrysaor now having the ability to reduce its UK tax liabilities from Premier\u2019s tax losses \u2013 though at a cost to the UK treasury. Premier\u2019s international assets, particularly Zama and Sea Lion, could provide growth options to diversify the portfolio and offset the underlying decline in production from the mature UK fields.\u00a0<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

This note\u00a0<\/span>gives\u00a0<\/span>a<\/span>\u00a0preliminary\u00a0<\/span>asse<\/span>ssment<\/span>\u00a0of<\/span>\u00a0the deal\u00a0<\/span>from each company\u2019s perspective and the outlook for the merged company and the<\/span>\u00a0wider<\/span>\u00a0North\u00a0<\/span>Sea\u00a0<\/span>M&A market.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

The\u00a0<\/span><\/b>D<\/span><\/b>eal<\/span><\/b>\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

Premier<\/span>\u00a0is to merge with\u00a0Chrysaor<\/span>,\u00a0<\/span>the UK\u2019s largest oil and gas producer,<\/span>\u00a0in a reverse takeover which will maintain Premier\u2019s stock market listing.\u00a0<\/span>Premier\u00a0<\/span>will issue<\/span>\u00a0new shares to\u00a0Chrysaor<\/span>\u2019s\u00a0private equity owners which will<\/span>\u00a0<\/span>repay\u00a0<\/span>Premier\u2019s<\/span> US$2.7bn of gross debt facilities (<\/span>1)<\/span>.<\/span>\u00a0<\/span>Premier\u2019s current letters of credit worth US$0.4bn will also be refinanced as part of the deal.\u00a0<\/span>Premier\u2019s\u00a0<\/span>recent\u00a0<\/span>deal to acquire BP\u2019s equity in the Andrew Area and Shearwater fields (<\/span>2)<\/span>\u00a0has been terminated, as has its previous refinancing plan<\/span>\u00a0based on the BP deal<\/span>.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

This latest deal was opportunistic \u2013 Premier announced last month that it was in discussions with third parties, including\u00a0Chrysaor, to see if it could agree a better deal than the refinancing plan it announced in August. Premier needed\u00a0<\/span>to conclude\u00a0<\/span>a deal due ahead of its\u00a0<\/span>debt\u00a0<\/span>maturity in May 2021 (<\/span>3)<\/span>.\u00a0Chrysaor\u00a0was able to move quickly given its private equity ownership and has agreed a deal<\/span>,<\/span>\u00a0subject to the approval of Premier\u2019s creditors and shareholders.\u00a0<\/span>Deal completion is expected\u00a0<\/span>during<\/span>\u00a0<\/span>Q1 2021.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

The deal with\u00a0Chrysaor\u00a0will see Premier\u2019s e<\/span>xisting creditors receive a cash payment of US$1.23bn<\/span>, equivalent to 61 cents in the US$<\/span>\u00a0owed to them<\/span>, together with new shares in the combined\u00a0<\/span>company<\/span>. A partial cash alternative to the new shares is being offered, up to a capped limit of US$175m. If creditors take the cash equivalent up to the limit available, it would be equivalent to 75 cents in the US$.<\/span>\u00a0The creditors will have to ch<\/span>o<\/span>ose between the upside that equity in the new combined entity could\u00a0<\/span>potentially\u00a0<\/span>provide them with, or an additional 14 cents in the US$\u00a0<\/span>in\u00a0<\/span>cash paid on completion.<\/span>\u00a0\u00a0<\/span>\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Assuming that\u00a0<\/span>all the<\/span>\u00a0partial cash alternative is taken,<\/span>\u00a0Premier\u2019s stakeholders would own 16.08% of the new entity, with 10.63% of that held by existing creditors and 5.45% held by Premier\u2019s existing equity holders.\u00a0Chrysaor\u00a0would own 83.92%<\/span>, of which 39.02% would be held by Harbour Energy,\u00a0Chrysaor\u2019s\u00a0main private equity financier. If\u00a0<\/span>none of<\/span>\u00a0the partial cash alternative is taken up the new entity will be owned 23.0% by Premier (with existing shareholders having 5.0%) and 77.0% by\u00a0Chrysaor\u00a0(with Harbour 38.5%).\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Based on Premier\u2019s immediate pre-merger announcement share price, its market cap<\/span>.<\/span>\u00a0was US$184m. With its shareholders set to own 5.45% of the new entity (assuming that the creditors take the maximum cash payment available), the newco needs to have a market cap<\/span>.<\/span>\u00a0of\u00a0<\/span>at least\u00a0<\/span>US$3.38bn<\/span>\u00a0for the deal to be\u00a0<\/span>at a premium to the pre-deal valuation<\/span>. The newco will have net debt of US$3.2<\/span>bn on deal completion, which<\/span>\u00a0would<\/span>\u00a0<\/span>give<\/span>\u00a0an enterprise value of $6.58bn.<\/span>\u00a0<\/span><\/p>\n

The newco will have 2P reserves of 717\u00a0mmboe\u00a0(at end-2019) and H1 2020 combined production would have been 254,000\u00a0boe\/d.\u00a0<\/span>If<\/span>\u00a0an EV of US$6.58bn\u00a0<\/span>is achieved<\/span>,<\/span>\u00a0it is\u00a0<\/span>equivalent to EV\/2P US$9.2\/boe\u00a0and US$2<\/span>5<\/span>,<\/span>9<\/span>00 per flowing\u00a0boe\/d.\u00a0<\/span>The following table compares the newco\u2019s metrics against\u00a0<\/span>Cairn Energy and\u00a0En<\/span>quest,\u00a0<\/span>with UK production<\/span>, and Aker BP and Lundin, Norwegian players<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Company<\/span><\/b>\u00a0<\/span><\/td>\nEnterprise Value<\/span><\/b>
\nUS$m<\/span><\/b>\u00a0<\/span><\/td>\n		2P Reserves<\/span><\/b>
\nmmboe<\/span><\/b>\u00a0<\/span><\/td>\n		Production<\/span><\/b>
\nboe\/d<\/span><\/b>\u00a0<\/span><\/td>\n		EV\/2P<\/span><\/b>
\nUS$\u00a0boe<\/span><\/b>\u00a0<\/span><\/td>\n		EV\/Production<\/span><\/b>
\nUS$’000 per\u00a0boe\/d<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
Premier Oil (pre deal)<\/span>\u00a0<\/span><\/td>\n2,146<\/span>\u00a0<\/span><\/td>\n175<\/span>\u00a0<\/span><\/td>\n67,500<\/span>\u00a0<\/span><\/td>\n12.3<\/span>\u00a0<\/span><\/td>\n31.8<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Chrysaor\u00a0\/ Premier newco<\/span><\/b>\u00a0<\/span><\/td>\nn\/a<\/span><\/b>\u00a0<\/span><\/td>\n717<\/span><\/b>\u00a0<\/span><\/td>\n254,000<\/span><\/b>\u00a0<\/span><\/td>\nn\/a<\/span><\/b>\u00a0<\/span><\/td>\nn\/a<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
Cairn Energy*<\/span>\u00a0<\/span><\/td>\n710<\/span>\u00a0<\/span><\/td>\n43<\/span>\u00a0<\/span><\/td>\n21,000<\/span>\u00a0<\/span><\/td>\n16.5<\/span>\u00a0<\/span><\/td>\n33.8<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Enquest<\/span>\u00a0<\/span><\/td>\n1,408<\/span>\u00a0<\/span><\/td>\n213<\/span>\u00a0<\/span><\/td>\n66,055<\/span>\u00a0<\/span><\/td>\n6.6<\/span>\u00a0<\/span><\/td>\n21.3<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Aker BP<\/span>\u00a0<\/span><\/td>\n9,264<\/span>\u00a0<\/span><\/td>\n906<\/span>\u00a0<\/span><\/td>\n212,500<\/span>\u00a0<\/span><\/td>\n10.2<\/span>\u00a0<\/span><\/td>\n43.6<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Lundin<\/span>\u00a0<\/span><\/td>\n9,415<\/span>\u00a0<\/span><\/td>\n693<\/span>\u00a0<\/span><\/td>\n157,000<\/span>\u00a0<\/span><\/td>\n13.6<\/span>\u00a0<\/span><\/td>\n60.0<\/span>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
*<\/span>\u00a0Assumes\u00a0<\/span>Cairn\u2019s\u00a0<\/span>Senegal sale completes<\/span>\u00a0<\/span>\u00a0<\/span><\/h6>\n

It looks highly probable that the Chrysaor \/ Premier newco would achieve a higher enterprise value for Premier\u2019s shareholders than pre-deal, based on the benchmarks.<\/span>\u00a0<\/span><\/p>\n

The<\/span>\u00a0alternatives\u00a0<\/span>to the\u00a0<\/span>Chrysaor<\/span>\u00a0deal,\u00a0<\/span>such as the refinancing associated with the BP asset acquisition, had it gone ahead, would also have been significantly dilutive to shareholders too. Premier\u2019s share price closed 2% up on the day of the merger announcement reflecting a perceived value-neutral deal for equity holders.\u00a0\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

A key upside for\u00a0Chrysaor\u00a0from the deal will be to utilise Premier\u2019s US$4.1bn of\u00a0<\/span>accumulated\u00a0<\/span>UK tax losses. At end-H1 2020\u00a0Chrysaor\u00a0had deferred tax liabilities of US$1.5bn on its balance sheet<\/span>.<\/span>\u00a0Although\u00a0Chrysaor\u00a0received a tax credit of US$96m in H1 2020, it has paid an average US$<\/span>223<\/span>m\/year in tax over the past\u00a0<\/span>two<\/span>\u00a0years.\u00a0<\/span>\u00a0Offsetting the tax liabilities from the producing assets with Premier\u2019s tax losses<\/span>\u00a0could create significant value for the newco and its investors \u2013 but at the expense of significantly reduced tax revenues from the North Sea for the UK. The\u00a0<\/span>government\u2019s\u00a0<\/span>UKCS tax revenues in 2019-20 were US$1.6bn (<\/span>4)<\/span>\u00a0with the Brent oil price averaging US$52.3\/bbl.<\/span>\u00a0<\/span>\u00a0\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Further savings will be made through eliminating G&A costs from the\u00a0Chrysaor\u00a0\/ Premier merged\u00a0newco.\u00a0Chrysaor\u2019s\u00a0<\/span>G&A costs are currently US$58.4m\/year based on its H1 2020 accounts, with Premier\u2019s G&A costs US$8.4m\/year. Savings are also likely on net financing costs (<\/span>5)<\/span>.\u00a0Chrysaor\u2019s\u00a0net finance costs were US$307.0m in FY 2019\u00a0<\/span>with US$2.2bn of net debt. Premier\u2019s FY 2019 net finance cost was US$352.5m with net debt of US$2.2bn. The newco is expected to have net debt of US$3.2bn on deal completion.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

The\u00a0<\/span><\/b>A<\/span><\/b>sset\u00a0<\/span><\/b>P<\/span><\/b>ortfolio<\/span><\/b>\u00a0<\/span><\/h3>\n

The following charts show the combined Chrysaor \/ Premier newco\u2019s 2P reserves and 2C resources as at end-2019 and the contribution to the total from each company (6)<\/span>.<\/span><\/p>\n

\"combined
\n<\/em>Source: Chrysaor \/ Premier merger documentation, 6th<\/sup> October 2020<\/h6>\n

The newco will have 93% of its 2P reserves in the UK, with 76% of this contributed by Chrysaor reflecting its position as a major UKCS player. Premier\u2019s 24% contribution includes\u00a0<\/span>its<\/span>\u00a0small international 2P reserves.\u00a0<\/span>63% of the 2P reserves are operated by the newco.\u00a0<\/span>\u00a0<\/span><\/p>\n

Premier has a much bigger 2C resources position<\/span>\u00a0<\/span>largely due to its equity in Sea Lion in the Falkland Islands and Zama in Mexico, and contributes 73% of the newco total compared to Chrysaor\u2019s 27%. Premier\u00a0<\/span>has been<\/span>\u00a0in discussions to farm-down its equity in Sea Lion and had put Zama up for sale. Harbour has stated that it wants to create\u00a0<\/span>a diversified E&P portfolio and may look to retain some or all Premier\u2019s international assets.<\/span>\u00a0In 2018 Harbour made an unsuccessful bid for Santos, so its international aspirations are credible.\u00a0<\/span>\u00a0<\/span><\/p>\n

The following charts show\u00a0<\/span>254,000 boe\/d\u00a0<\/span>H1 2020 production of the combined Chrysaor \/ Premier newco,\u00a0<\/span>broken down<\/span>\u00a0by key assets \/ hubs<\/span> and the contribution from Chrysaor and Premier (7)<\/span>.<\/span><\/p>\n

\"H1
\n<\/em>Source: Chrysaor \/ Premier merger documentation, 6th<\/sup> October 2020<\/h6>\n

Chrysaor operates three main production hubs in the North Sea, the Armada, Everest, Lomond, Erskine hub; the J-Area; and the Greater Britannia area. These accounted for 58% of Chrysaor\u2019s production in H1 2020 and 43% of the combined newco total. Premier\u2019s key producing asset is its operated Catcher Area which accounted for 42% of its production in H1 2020 and 11<\/span>% of the combined total. Other Premier assets include Solan (100% equity), Chrysaor\u2019s first development in the UKCS which ironically Premier helped\u00a0<\/span>Chrysaor\u00a0<\/span>to fund (<\/span>8)<\/span>\u00a0before the private equity investment in Chrysaor.<\/span>\u00a0<\/span><\/p>\n

The following chart shows\u00a0<\/span>the production profile (<\/span>9)<\/span>\u00a0for Chrysaor, Premier UK and Premier\u2019s\u00a0<\/span>international assets.\u00a0<\/span>Assets under development and near-term developmen<\/span>ts are included,\u00a0<\/span>but assets yet to receive FID, such as Premier\u2019s Zama and Sea Lion discoveries, are excluded<\/span>.<\/span>\u00a0<\/span><\/p>\n

\"Production
\n<\/span>Source:\u00a0Westwood Atlas and analysis<\/h6>\n

Chrysaor\u2019s key UK assets are mature and its production profile\u00a0<\/span>is in decline<\/span>, with output set to fall from\u00a0<\/span>nearly<\/span>\u00a0190,000<\/span>\u00a0boe\/d<\/span>\u00a0in 2020 to\u00a0<\/span>107,000 boe\/d in 2025 and\u00a0<\/span>45,000 boe\/d in 2030. In the short term the addition of Premier will\u00a0<\/span>help offset the decline\u00a0<\/span>with its UK<\/span>\u00a0production increasing from 44,000 boe\/d to 55,000 boe\/d over the next two years<\/span>, largely driven<\/span>\u00a0by the start-up of the Tolmount field.\u00a0<\/span>From 2023 onwards\u00a0<\/span>Premier\u2019s UK and international production<\/span>\u00a0declines<\/span>. This would be transformed if a fast-track development<\/span>\u00a0of Zama goes ahead (operator Talos is looking at a 2023 start-up date though this may be optimisti<\/span>c<\/span>)<\/span>\u00a0\u2013 assuming that Harbour decides\u00a0<\/span>to keep the asset rather than sell it as Premier had intended to.<\/span>\u00a0<\/span><\/p>\n

Harbour stated in the merger announcement that it intends\u00a0<\/span>to continue to reinvest in the North Sea<\/span>, though it is not clear if this relates to further deals<\/span>\u00a0or for capex<\/span>\u00a0in new projects.<\/span>\u00a0<\/span>\u00a0<\/span>Chrysaor\u00a0<\/span>is investing<\/span>\u00a0to extend the li<\/span>fe of the\u00a0<\/span>production hubs<\/span>\u00a0it previously acquired<\/span>\u00a0to \u2018maximise economic recovery<\/span>\u2019\u00a0<\/span>(and delay abandonment),\u00a0<\/span>key aims\u00a0<\/span>for the\u00a0<\/span>UK\u00a0<\/span>Government<\/span>.\u00a0<\/span>Without\u00a0<\/span>further investment the Chrysaor \/ Premier\u00a0<\/span>newco\u00a0<\/span>production\u00a0<\/span>would<\/span>\u00a0fall by nearly 75% over the next ten years<\/span>.\u00a0<\/span>The company will be a cash cow,\u00a0<\/span>with<\/span>\u00a0Premier\u2019s UK tax lo<\/span>sses offsetting Chrysaor\u2019s\u00a0<\/span>UK\u00a0<\/span>tax liabilities.\u00a0<\/span>With\u00a0<\/span>UK tax being offset,\u00a0<\/span>the\u00a0<\/span>economics of\u00a0<\/span>new North Sea dev<\/span>elopments will\u00a0<\/span>also\u00a0<\/span>be enhanced<\/span>\u00a0which may be an incentive for the newco to invest<\/span>\u00a0further capex<\/span>\u00a0in the UKCS<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

It remains to be seen whether the\u00a0<\/span>newco\u2019s\u00a0<\/span>free cash will be used to fund\u00a0<\/span>UK<\/span>\u00a0and\/or\u00a0<\/span>international developments<\/span>\u00a0and\/or corporate purposes such as paying down the newco\u2019s US$3.2bn net debt<\/span>\u00a0and funding dividend payments to Harbour and the other equity owners<\/span>\u00a0of the Chrysaor \/ Premeier newco.<\/span>\u00a0<\/span>HitecVision, the Norwegian private equity<\/span>\u00a0company, has received more than US$2bn in dividends\u00a0<\/span>fr<\/span>o<\/span>m its 30.4% stake in\u00a0<\/span>V<\/span>\u00e5<\/span>r Energi in Norway<\/span>\u00a0since 2016<\/span>, which may be a precedent for the\u00a0Chrysaor\u00a0\/ Premier\u00a0newco.<\/span>\u00a0\u00a0<\/span>\u00a0\u00a0<\/span>\u00a0<\/span>\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Implications for the\u00a0<\/span><\/b>North Sea\u00a0<\/span><\/b>M&A Market<\/span><\/b>\u00a0<\/span><\/h3>\n

The\u00a0Chrysaor\u00a0reverse takeover\u00a0<\/span>offer\u00a0<\/span>for Premier<\/span>\u00a0is\u00a0<\/span>an\u00a0<\/span>opportunistic<\/span>\u00a0deal<\/span>, reflecting Premier\u2019s increasingly urgent needs to refinance its debt and\u00a0Chrysaor\u2019s\u00a0ability to\u00a0<\/span>react<\/span>\u00a0rapidly. The good fit of the assets and potential upside from reducing tax liabilities added to the deal momentum.<\/span>\u00a0<\/span><\/p>\n

T<\/span>here are other companies\u00a0<\/span>burdened by<\/span>\u00a0debt such as\u00a0<\/span>and\u00a0Enquest\u00a0<\/span>and Delek\/Ithaca\u00a0<\/span>which may be receptive to a corporate deal<\/span>.<\/span>\u00a0<\/span>P<\/span>rivate equity investors still have enthusiasm for investing in the North Sea.\u00a0<\/span>HitecVision, the Norwegian private equity group, announced this month that it had a fund of up to US$1.1bn available to invest in its Norw<\/span>e<\/span>gian upstream<\/span>\u00a0E&P company, Sval Energi, and its UK E&P company, N<\/span>EO<\/span>\u00a0(which recently completed a US$635m purchase of a package of UK assets from Total).\u00a0HitecVision\u00a0also has an equity stake in V<\/span>\u00e5<\/span>r Energi in Norway.<\/span>\u00a0<\/span><\/p>\n

This latest deal\u00a0<\/span>does not necessarily<\/span>\u00a0herald an upsurge in M&A activity<\/span>,<\/span>\u00a0as in the current market there are few cash buyers<\/span>\u00a0un<\/span>less the assets provide a compelling strategic fit and\/or\u00a0<\/span>they are being sold at cheap prices by distressed sellers.\u00a0<\/span>\u00a0<\/span><\/p>\n

The reaction of the market to the\u00a0Chrysaor\u00a0\/ Premier merged company\u00a0<\/span>will be watched with interest, particularly to see if it achieves the market cap. of at least US$3.4bn at which point Premier\u2019s existing shareholders will have broken<\/span>–<\/span>even from the deal.\u00a0<\/span>Harbour is restricted from\u00a0<\/span>selling its shares in the\u00a0Chrysaor\u00a0\/ Premier newco for 12 months\u00a0<\/span>from the date of completion but could then reduce its<\/span>\u00a0stake.\u00a0<\/span>If the\u00a0Chrysaor\u00a0\/ Premier newco is a\u00a0<\/span>market\u00a0<\/span>success<\/span>,<\/span>\u00a0other private equity players<\/span>,<\/span>\u00a0<\/span>such as\u00a0<\/span>those invested in\u00a0<\/span>Neptune Energy,\u00a0<\/span>could look to exit through a listing (which last month stated that it was considering an IPO in 2021).<\/span>\u00a0<\/span><\/p>\n

Private equity investment has been vital in forming and sustaining a new generation of E&P companies that have become increasingly important players in the North Sea. Whether equity investors and bondholders will\u00a0<\/span>again be\u00a0<\/span>attracted<\/span>\u00a0to the sector remains to be seen\u00a0<\/span>given<\/span>\u00a0their recent experiences with companies such as Premier<\/span>\u00a0and<\/span>\u00a0Hurricane\u00a0<\/span>not to mention\u00a0<\/span>concerns around\u00a0<\/span>the\u00a0<\/span>Energy Transition<\/span>.\u00a0<\/span>\u00a0<\/span>\u00a0<\/span>\u00a0<\/span>\u00a0\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Keith Myers, President, Research
\nkmyers@westwoodenergy.com<\/a><\/p>\n

Yvonne Telford, Senior Analyst
\nytelford@westwoodenergy.com<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

\n

1 The US$2.7bn includes debt and currency and interest rate hedges. Premier\u2019s gross debt at H1 2020 was US$2.1bn with net debt of US$2.0bn
\n2 Westwood Wildcat Corporate Report, June 2020
\n3 Westwood Wildcat Corporate Report, August 2020
\n4 UK Oil and Gas Authority
\n5 Finance expenses less finance income
\n6 Chrysaor \/ Premier merger announcement
\n7 Chrysaor \/ Premier merger announcement
\n8 Chrysaor gained a 100% interest in the Solan licence in 2008. Premier acquired a 60% interest in Solan in 2011 for a US$10m up-front fee, a further US$10m on FID and a development carry. Premier acquired Chrysaor\u2019s remaining 40% in Solan in 2015 for no consideration but an NPI and royalty to be paid once Premier\u2019s US$530m development carry plus interest had been repaid.
\n9 Westwood Atlas for individual UK asset production profiles. Premier\u2019s international production decline based on historical figures.<\/p>\n","protected":false},"excerpt":{"rendered":"

This note\u00a0gives\u00a0a\u00a0preliminary\u00a0assessment\u00a0of\u00a0the Premier Oil & Chrysaor deal,\u00a0from each company\u2019s perspective and the outlook for the merged company and the\u00a0wider\u00a0North\u00a0Sea\u00a0M&A market.<\/p>\n","protected":false},"author":6,"featured_media":10808,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[353,326,347,337,48,338,335,334,336,49,325],"tags":[193,392,278,413,55,412,414,415,82],"class_list":{"0":"post-10789","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all_articles","8":"category-atlas","9":"category-exploration-and-production","10":"category-global-ea-subsectors","11":"category-news","12":"category-nw-europe-subsectors","13":"category-sectors","14":"category-solutions","15":"category-subsectors","16":"category-westwood-insight","17":"category-wildcat","18":"tag-chryasor","19":"tag-exploration-production","20":"tag-ma","21":"tag-merger","22":"tag-north-sea","23":"tag-premier-oil","24":"tag-reverse-takeover","25":"tag-takeover","26":"tag-ukcs"},"acf":[],"yoast_head":"\nPremier Oil \u2013 reverse takeover by Chrysaor - Westwood<\/title>\n<meta name=\"description\" content=\"This note\u00a0gives\u00a0a\u00a0preliminary\u00a0assessment\u00a0of\u00a0the Premier Oil & Chrysaor deal,\u00a0from each company\u2019s perspective and the outlook for the merged company and the\u00a0wider\u00a0North\u00a0Sea\u00a0M&A market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Premier Oil \u2013 reverse takeover by Chrysaor - Westwood\" \/>\n<meta property=\"og:description\" content=\"This note\u00a0gives\u00a0a\u00a0preliminary\u00a0assessment\u00a0of\u00a0the Premier Oil & Chrysaor deal,\u00a0from each company\u2019s perspective and the outlook for the merged company and the\u00a0wider\u00a0North\u00a0Sea\u00a0M&A market.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor\" \/>\n<meta property=\"og:site_name\" content=\"Westwood\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-15T09:32:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-07T01:54:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oliver Solly\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oliver Solly\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor\",\"url\":\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor\",\"name\":\"Premier Oil \u2013 reverse takeover by Chrysaor - Westwood\",\"isPartOf\":{\"@id\":\"https:\/\/www.westwoodenergy.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg\",\"datePublished\":\"2020-10-15T09:32:18+00:00\",\"dateModified\":\"2022-09-07T01:54:16+00:00\",\"author\":{\"@id\":\"https:\/\/www.westwoodenergy.com\/#\/schema\/person\/25106e618fd78071c4e90fd187d478b6\"},\"description\":\"This note\u00a0gives\u00a0a\u00a0preliminary\u00a0assessment\u00a0of\u00a0the Premier Oil & Chrysaor deal,\u00a0from each company\u2019s perspective and the outlook for the merged company and the\u00a0wider\u00a0North\u00a0Sea\u00a0M&A market.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#primaryimage\",\"url\":\"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg\",\"contentUrl\":\"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg\",\"width\":2560,\"height\":853},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.westwoodenergy.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Premier Oil \u2013 reverse takeover by Chrysaor\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.westwoodenergy.com\/#website\",\"url\":\"https:\/\/www.westwoodenergy.com\/\",\"name\":\"Westwood\",\"description\":\"Westwood Global Energy Group\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.westwoodenergy.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.westwoodenergy.com\/#\/schema\/person\/25106e618fd78071c4e90fd187d478b6\",\"name\":\"Oliver Solly\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.westwoodenergy.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/22108f813070679c70eab42ab5c3c925dcf02729845a472865c6b1202143b0aa?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/22108f813070679c70eab42ab5c3c925dcf02729845a472865c6b1202143b0aa?s=96&d=mm&r=g\",\"caption\":\"Oliver Solly\"},\"url\":\"https:\/\/www.westwoodenergy.com\/author\/olliesolly\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Premier Oil \u2013 reverse takeover by Chrysaor - Westwood","description":"This note\u00a0gives\u00a0a\u00a0preliminary\u00a0assessment\u00a0of\u00a0the Premier Oil & Chrysaor deal,\u00a0from each company\u2019s perspective and the outlook for the merged company and the\u00a0wider\u00a0North\u00a0Sea\u00a0M&A market.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor","og_locale":"en_GB","og_type":"article","og_title":"Premier Oil \u2013 reverse takeover by Chrysaor - Westwood","og_description":"This note\u00a0gives\u00a0a\u00a0preliminary\u00a0assessment\u00a0of\u00a0the Premier Oil & Chrysaor deal,\u00a0from each company\u2019s perspective and the outlook for the merged company and the\u00a0wider\u00a0North\u00a0Sea\u00a0M&A market.","og_url":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor","og_site_name":"Westwood","article_published_time":"2020-10-15T09:32:18+00:00","article_modified_time":"2022-09-07T01:54:16+00:00","og_image":[{"width":2560,"height":853,"url":"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg","type":"image\/jpeg"}],"author":"Oliver Solly","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Oliver Solly","Estimated reading time":"11 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor","url":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor","name":"Premier Oil \u2013 reverse takeover by Chrysaor - Westwood","isPartOf":{"@id":"https:\/\/www.westwoodenergy.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#primaryimage"},"image":{"@id":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#primaryimage"},"thumbnailUrl":"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg","datePublished":"2020-10-15T09:32:18+00:00","dateModified":"2022-09-07T01:54:16+00:00","author":{"@id":"https:\/\/www.westwoodenergy.com\/#\/schema\/person\/25106e618fd78071c4e90fd187d478b6"},"description":"This note\u00a0gives\u00a0a\u00a0preliminary\u00a0assessment\u00a0of\u00a0the Premier Oil & Chrysaor deal,\u00a0from each company\u2019s perspective and the outlook for the merged company and the\u00a0wider\u00a0North\u00a0Sea\u00a0M&A market.","breadcrumb":{"@id":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#primaryimage","url":"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg","contentUrl":"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/10\/WI-Premier-Oil-Chrysaor-Page-Header-v2-scaled.jpg","width":2560,"height":853},{"@type":"BreadcrumbList","@id":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/premier-oil-reverse-takeover-by-chrysaor#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.westwoodenergy.com\/"},{"@type":"ListItem","position":2,"name":"Premier Oil \u2013 reverse takeover by Chrysaor"}]},{"@type":"WebSite","@id":"https:\/\/www.westwoodenergy.com\/#website","url":"https:\/\/www.westwoodenergy.com\/","name":"Westwood","description":"Westwood Global Energy Group","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.westwoodenergy.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/www.westwoodenergy.com\/#\/schema\/person\/25106e618fd78071c4e90fd187d478b6","name":"Oliver Solly","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.westwoodenergy.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/22108f813070679c70eab42ab5c3c925dcf02729845a472865c6b1202143b0aa?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/22108f813070679c70eab42ab5c3c925dcf02729845a472865c6b1202143b0aa?s=96&d=mm&r=g","caption":"Oliver Solly"},"url":"https:\/\/www.westwoodenergy.com\/author\/olliesolly"}]}},"_links":{"self":[{"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/posts\/10789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/comments?post=10789"}],"version-history":[{"count":0,"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/posts\/10789\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/media\/10808"}],"wp:attachment":[{"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/media?parent=10789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/categories?post=10789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.westwoodenergy.com\/wp-json\/wp\/v2\/tags?post=10789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}