Trinity Exploration & Production PLC (AIM:TRIN) said it is backing an enhanced cash bid for the business worth £24.6 million and withdrawing its support for a previous, lower all-share offer from Touchstone Exploration.
Last week, a company called Lease Operators tabled a deal worth 68.05p, representing a nearly 31% premium to the Touchstone terms.
"The Trinity directors consider that the acquisition provides Trinity Shareholders with an opportunity to realise a certain valuation in cash at a significant premium to the unaffected prevailing price, which reflects the current strength and future potential of Trinity," investors were told.
Trinidad and Tobago-base Lease Operators is part of the Well Services group of companies, which as the name suggests started life providing support to the oil industry, before becoming the country's largest independent producer.