Thursday, September 28, 2023
Oil & Gas

Court approves Prax takeover of West of Shetland explorer Hurricane Energy

Prax Exploration and Production has been cleared for its takeover of Hurricane Energy (LON: HUR) after approval from the UK High Court.

It was announced in March that the London-headquartered energy conglomerate had made a deal to acquire Hurricane, valuing the latter at around £250m.

That deal – under a “scheme of arrangement” – was subject to court clearance, which has now been granted. The scheme becomes effective on Thursday morning.

Dealings in Hurricane Energy shares are being suspended from 7.30am on June 8 (Thursday), with today being the last day of dealings in Hurricane shares.

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It’s expected that admission to trading of Hurricane Shares on the AIM market will be cancelled at 7.00 a.m. on Friday.

London-headquartered Prax is part of midstream-focused State Oil, and acquired the Lindsey oil refinery at Immingham in 2021 from TotalEnergies.

It is looking to create “a sizeable upstream business” in the North Sea alongside its downstream operations.

In its 2022 accounts published last week, Hurricane reported a 10-fold boost in profits on 2021’s figures.

Announcing the deal in March, Hurricane chairman Philip Wolfe said it is expected to “deliver more cash” than shareholders would have likely received from the firm’s Lancaster oilfield, and on an expedited timeframe.

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Prax CEO Sanjeev Soosaipillai said: “We see great strategic value in being a fully integrated energy company and have invested in experienced upstream and M&A management teams to drive this. The acquisition of Hurricane will provide a strong foundation for further upstream investments. We look forward to the Hurricane team joining the Prax family.”

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