- Oil company Premier Oil said it had agreed to a reverse takeover deal with Chrysaor that would see its shares continue to be listed in London.

The merger would see the combined company become the largest independent oil and gas producer in the UK North Sea, with combined output at 30 June of over 250,000 barrels of oil equivalent per day.

The deal would see Premier Oil stakeholders, including debt holders, owning up to 23% of the combined group and Chrysaor owning at least 77%. Premier Oil's shareholders would own up to 5.45% of the combined group.

Premier Oil's around $2.7 billion of gross debt and certain hedging liabilities would be repaid and cancelled on completion.

A $1.23 billion cash payment would be made to financial creditors of Premier Oil and its subsidiaries and its cross-currency hedge counterparties.

Premier Oil's around $400 million of letters of credit would be refinanced, while existing creditors would also receive shares in the combined group.

'There is significant industrial, commercial and financial logic to creating an independent oil and gas company of this size with a leading position in the UK North Sea,' chief executive Tony Durrant said.

'The transaction will also provide the combined group with a solid foundation from which to pursue a fully funded international growth strategy.'

At 9:51am: [LON:PMO] Premier Oil PLC share price was +1.91p at 17.1p

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