Energean Oil and Gas took a step towards the big league today with a $750m (£596m) acquisition of EDFs oil exploration wing.
The company will take over Edison E&P in a deal which it claims makes it one of the biggest independent energy explorers in London.
It won a race against, among others, London-listed Cairn Energy. Neptune Energy was also understood to be bidding.
The firm, which listed in London in March last year, has a market valuation of around £1.3bn. Its shares soared more than 11 per cent to 935p after the news today.
“I think its a fantastic deal. It is a transformational deal for Energean, it adds a great collection of assets to our book, with a strong production,” chief executive Mathios Rigas told City A.M.
The acquisition broadens Energeans portfolio, which currently mainly focuses on two wells in Israel. The $1.7bn development aims to bring gas to the Israeli market by 2021.
It deal brings Energeans reserves to 640m barrels of oil equivalent. Production will hit between 150,000 and 200,000 barrels if it manages to sell more gas to Israel, Rigas said.
But it also gives Energean non-core assets in the North Sea which Rigas said it will look to dispose of.
“I have my simple rule that says that we do business within three hours from flight time from Athens, to keep us focused and make sure that I can manage this business properly,” Rigas said.
The company has set a minimumRead More