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LONDON, April 1 (Reuters) - Harbour Energy started
trading on Thursday on the London Stock Exchange at 19 pence
($0.26) per share after the merger of Chrysaor and Premier Oil,
replacing the Premier's listing and coming in around 15% below
Premier's last share price.
Harbour's creation ushers in a new era with groups such as
Chrysaor or HitecVision investing private money that is giving a
new lease of life to the North Sea oil industry.
Barclays analysts, who have a 30p price target, forecast
Harbour could generate more than $1.1 billion in free cash flow
in 2022 if oil traded at $60 per barrel. They also expected a 1p
per share, or $240 million, dividend payout for 2021.
Harbour said it started generating free cash flow once the
price was $30-$35 per barrel of oil equivalent.
Royal Bank of Canada analysts said before trading started
that they had an "outperform" with a 30p price target.
"European investors have the opportunity to establish a
position in a sizeable business that trades at a material
discount to the sector’s incumbents," they wrote.
($1 = 0.7258 pounds)
(Reporting by Shadia Nasralla; Editing by Catherine Evans and
Edmund Blair)