Prax Group has announced the completion of its takeover of West of Shetland firm Hurricane Energy.
A court sanction of the deal, which valued Hurricane at £250m, was granted last night.
Directors of Hurricane (LON: HUR) have now resigned with immediate effect and shares of the firm on the AIM market are being cancelled with effect from tomorrow.
Sanjeev Kumar Soosaipillai, CEO of the Prax Group, said the move is a “very significant moment in the group’s history,” and a “major leap forward” in its goal to become a global integrated energy provider.
He added: “Our long-term strategy is to be fully integrated across the oil value chain from upstream to downstream, and today marks the beginning of a new chapter for the Prax Group.
“The acquisition of Hurricane Energy is a natural progression for the Group, and will create unique opportunities for synergies with existing Prax-owned assets, as well as demonstrating our ongoing commitment to building a solid and transformative supply chain to meet the needs of our customers for many years to come.”
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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