The Ophir Energy board has released a statement confirming that it recently made an approach to the board of Premier Oil with the aim of merging the two companies.
According to the ophir Energy board a merger between the two would provide the potential to create a well-funded, re-focussed, full cycle Exploration and Production Company.
At the same Ophir Energy says it is no longer considering making an offer for Premier Oil following the rejection of the offer by the latter.
“As a result of this announcement, Ophir will, except with the consent of the Panel, be bound by the restrictions contained in Rule 2.8 of the Code,” reads a statement from the company.
“For the purposes of Rule 2.8 of the Code, Ophir reserves the right to make or participate in an offer for Premier (and/or take any other action which would otherwise be restricted under Rule 2.8 of the Code) within the next six months following the date of this announcement in the circumstances set out in Note 2 on Rule 2.8 of the Code.”
Reports on a possible offer by Ophir appeared on The Sunday Times last week that resulted in the increase in the share price of Premier Oil shares at the FTSE.
Without identifying its source the newspaper reported that Ophir Energy has approached Premier Oil in February with the aim of creating a new firm that would operate in East Africa and Asia where both firms have interest.