Premier oil to Harbour

Does anyone understand the impact and what the dilution of 5% will do to shareholders (this is what PMO holders will own) and pricing. This has been quite bullish lately.

If you don’t know:

Reverse merger taking place with chryasor and the listing will show as Harbour

Do you have a link to the terms and we can help dissect / make sense of it?

These look like good sources, but at first glance I cant see the terms of the dilution you mention:

Thanks Dougal.


This is the one stock I took a complete punt on and the bag is recovering :joy:

Ok, so its not 5% dilution, its more existing shareholders in PMO will only have 5% of the shares in the ‘merged’ company.

Still need to see the terms(looks complicated), but from that Article:

As part of the new merged business:
5% owned by current Premier Oil shareholders equity
18% owned by converting Premier Oil creditors to equity - those that loaned Premier Oil funds through debt(bonds), or due cash payments.
39% owned by Harbour Energy
I think Chryasor will own the rest?

Premier oil in the statement had an mcap of 156m, with 500m in debt.
The new company will have an mcap of about 2.6bn.

It actually looks like a very complicated deal, with creditors converting debt to equity in Premier Oil.

The 250k BOPD the new group will be able to produce each day is huge, and so is the 4bn from offset table tax losses.

I don’t know if that helps or not.

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Thanks Dougal I didn’t explain it well, it’s hard to work out whether it’s good to keep post IPO or not. Head scratcher for sure…