London, UK: Prax Group, the independent oil refining and trading company, has announced that it has satisfied the regulatory conditions for its proposed acquisition of Hurricane Energy plc, the UK-based oil and gas company.
The acquisition, which was announced on 16 March 2023, will be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act (the “Scheme”). The Scheme was approved by the Hurricane shareholders at the Court Meeting and the General Meeting held on 4 May 2023.
Prax has received confirmation from the Cabinet Office that the Chancellor of the Duchy of Lancaster has determined that no further action will be taken under the National Security and Investment Act 2021. Prax has also received written confirmation from the North Sea Transition Authority, the UK oil and gas industry regulator, stating that it does not intend to revoke any of the relevant licences or to require a further change of control of Hurricane following the Scheme becoming Effective.
The acquisition is subject to the sanction of the Scheme by the Court at a hearing scheduled for 7 June 2023. If the Scheme is sanctioned by the Court, it is expected to become Effective on or around 10 June 2023.
The acquisition will enable Prax to diversify its portfolio and access Hurricane’s assets in the West of Shetland region, which include the Lancaster field, the UK’s first producing fractured basement field. Prax intends to support Hurricane’s ongoing operations and development plans and to leverage its expertise and resources to maximise the value of Hurricane’s assets.
Prax Exploration & Production agrees to acquire Hurricane Energy for £249 million