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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Trouble brews in B&M as bargain shops take a hitOpinion Once a stock market darling, B&M's share price has slumped. What has gone wrong for bargain shops?
-
US and China reach a ceasefire in their trade war after talks in LondonThe US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
