Longboat Energy PLC (AIM:LBE) shares improved in Wednesday’s early deals as the exploration and production company upped its stake in Block 2A, offshore Malaysia, through an acquisition.
The London-listed company’s stake in the project increases to 52.5% as a result of a deal to buy privately owned Topaz Number One, which has a 15.75% stake in Block 2A as its sole asset.
It said, in a statement, that the transaction simplifies the process towards a positive well decision and the potential introduction of an additional funding partner prior to drilling.
The Topaz team, James Menzies and Pierre Eliet, will join Longboat as part of the deal.
"We are pleased to have increased our interest in the extensive and prospective Block 2A in deep water Sarawak, which contains the giant Kertang prospect,” said chief executive Helge Hammer.
“Sarawak has seen significant exploration success in recent years, and we are excited to play a role in the quest for additional gas resources in the area.”
Hammer added: "We welcome James and Pierre to Longboat.
“Their extensive experience and network from SE Asia combined with our in-house technical expertise, puts us in a strong position to deliver accelerated growth in the region. In parallel with maturing Block 2A towards the drilling decision, we focus on adding production and development assets to our portfolio in SE Asia."
In London, Longboat shares strengthened around 5% to trade at 24.11p in early deals.