The acquisition is intended to be implemented by Prax by means of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 between Hurricane and Hurricane Shareholders. The announcement of the acquisition concludes the formal sale process.

Philip Wolfe, chairman of Hurricane, said: “I am pleased by the outcome of what has been a thorough and exhaustive formal sale process. The Hurricane Board believes that the Acquisition will deliver more cash than Hurricane Shareholders are likely to have received from Hurricane’s Lancaster oil field, on a much expedited timeframe, as well as mitigating the risks associated with production from a single well development.

“In addition, the Deferred Consideration Units offer the opportunity to share in future production out-performance or higher oil prices, as well as revenue from future acquisitions by Hurricane. Accordingly, the board of Hurricane is pleased to recommend the acquisition to Shareholders.”

UK-headquartered Prax Group currently has 1,274 employees across seven countries and has revenues of around $10 billion (£8.3bn).

Sanjeev Kumar Soosaipillai, chairman and CEO of the Prax Group, said: “We have a strong balance sheet, which provides a solid platform to execute our strategic growth plans, the next leg of which is to build a scaled upstream business. We see great strategic value in being a fully integrated energy company and have invested in experienced upstream and M&A management teams to drive this.

“The acquisition of Hurricane will provide a strong foundation for further upstream investments. We look forward to the Hurricane team joining the Prax family.”

Alessandro Agostini, head of exploration & production of the Prax Group, said: “We are committed to building a scaled upstream division and have the financial, strategic and management capacity to complete further upstream M&A at pace.

“Hurricane is the first step and the platform from which our upstream division will be built, as, together with our M&A colleagues we review the potential acquisition of further, complementary UK continental shelf upstream assets. We look forward to welcoming the Hurricane team as we build a scaled upstream division within the Prax group.”

Pinsent Masons LLP is providing legal advice to Prax and the Prax Group. Dentons UK & Middle East LLP is providing legal advice to Hurricane.