Shares in Harbour Energy PLC (LSE:HBR) spurted almost 7% higher to 212.5p after the FTSE 250 group struck a $170 million deal to increase its ownership of the Catcher and Kraken oil fields in the UK North Sea.
It has agreed to most of the subsidiaries of Waldorf Energy Partners and Waldorf Production, funded from existing liquidity and targeted for completion in the second quarter of 2026.
The company said the acquisition will immediately be "materially accretive" to free cash flow as it adds 20,000 barrels of oil equivalent per day of oil-weighted production and 35 million barrels of oil equivalent per day of 2P reserves.
Harbour expects significant additional financial benefits, including the release of an estimated $350 million of cash currently posted to secure Waldorf's decommissioning liabilities and the addition of UK ring fence tax losses.
It will increase Harbour's interest in the operated Catcher field to 90% from 50%, and add a 29.5% non-operated interest in the Kraken field.
Waldorf’s non-operated assets will be integrated into the group's UK organisation, it said, unlocking operational synergies.
Scott Barr, UK managing director, said: "This transaction is an important step for Harbour in the UK North Sea, building on the action we've already taken to sustain our position in the basin, given the ongoing fiscal and regulatory challenges.
"It stabilises the Catcher joint venture partnership and delivers immediate cash flow benefits."