Cairn Energy gets its hands on Agora Oil and Gas

Oil giant Cairn Energy has completed the aquisition of Agora Oil and Gas, a Norwegian company with non-operated exploration, appraisal and development assets in the UK and Norwegian North Sea.

The $450m deal adds extra drilling activity to Cairn's 2012 exploration and appraisal programme, with nine wells scheduled to be drilled this year.

It is to be funded through a combination of 43% cash and 57% Cairn shares.

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In April, Agora struck oil at its Skarfjell Prospect in the Norwegian North Sea, which it found very good quality upper Jurassic reservoir sandstone containing light oil over a 168m gross interval.

Simon Thomson, Chief Executive of Cairn Energy PLC said: "The value of the acquisition of Agora has already been demonstrated with the significant light oil Skarfjell discovery in the Norwegian North Sea.

"This is an important initial transaction for Cairn, demonstrating our intention to build a balanced portfolio. The Agora team's experience and proven track record in identifying opportunities in a relatively mature basin, has the potential to add significant value for Cairn."

NR