Shares in Longboat Energy PLC (AIM:LBE) soared 126% to 21.5p after the Norwegian North Sea explorer struck a deal with Japan Petroleum Exploration Co (Japex) to form a joint venture.
Tokyo-listed Japex will invest up to US$50mln cash for 49.9% of the AIM-listed company's Norwegian subsidiary, Longboat Energy Norge, which will be renamed Longboat JAPEX Norge to form a joint venture "with a goal of building a leading Norwegian-focussed independent".
Japex will provide the joint venture with a US$100mln acquisition financing facility to allow it to pursue a "growth-led strategy to create value predominantly through the acquisition of development projects, growing 2P reserves and reaching a significant production level within three to five years".
Helge Hammer, Longboat's chief executive, said: "Japex is a long-established E&P company with a strong balance sheet and significant worldwide technical competence including in the North Sea. By joining forces, we will have greater opportunities and strong financial backing to pursue them."