The amalgamation of Premier Oil and Chrysaor is now ‘the largest UK listed independent oil and gas company’.
Harbour is a combination of Premier and private-equity backed Chrysaor to create ‘the largest UK listed independent oil and gas company’.
It is a producer with a portfolio comprising some 200,000 barrels oil equivalent per day from operations in the North Sea and South East Asia.
The company boasts a new management, a strong and flexible balance sheet giving it the potential for further growth.
For 2021, Harbour is guiding for 200,000 to 215,000 boepd of production with operating costs averaging less than US$15 per barrel, free cash flow breakeven is stated at US$30 to US$35 per barrel.
Capital expenditure is expected at around US$1.1bn and the company has US$2.9bn of debt plus US$700mln of available liquidity.
The deal was a problem solver for Premier and Chrysaor. It gave premier a way out of an otherwise inescapable debt crunch and for Chrysaor’s private equity owners it has created an avenue for divestment.
Premier’s shareholders owned approximately …% of the new company as a result of the merger.
“Today, as we start our future as Harbour Energy, we look forward to realising the potential of our new Company for all of our stakeholders,” said chief executive Linda Cook.
“As the largest UK listed independent oil and gas company, Harbour offers a unique opportunity for investors, bringing together two complementary portfolios with a material North Sea foundation, an attractive global footprint and a strong balance sheet.”
Harbour shares saw its shares changing hands at 21.20p.
Stockbroker Peel Hunt marked its coverage of the oil firm with a ‘reduce’ rating and a 21p target.
Read More: Harbour Energy Plc makes London Stock Exchange debut