Bowleven, a West Africa focused oil and gas company, based in Edinburgh saw its shares rise some 70% driven by speculation of a possible takeover by Dragon Oil.
The shares rose to 133.67 pence at 12:18 GMT, which represents a five month high.
Dubai based, Dragon Oil released a statement in which it says that the company “notes the recent movement in Bowleven’s share price and confirms that it is in the preliminary stages of exploring a possible offer for all of the issued and to be issued share capital of Bowleven.”
Dragon Oil which owns and operates Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan is aiming to expand its assets portfolio.
If the acquisition takes place, Dragon Oil would take into possession Bowleven’s assets comprising of three shallow water blocks offshore Cameroon, one block onshore Cameroon, and also a 100% interest in EOV Permit, Offshore Gabon.
Dragon Oil also said that its statement doesn’t represent a firm intention to make a takeover bid and added that “there can be no certainty that any offer will ultimately be made or the terms or timing on which any such offer would be made.”
The company will either announce a firm intention to make an offer for Bowleven or announce that it does not intend to make an offer by March 16, 2012.
Offshore Energy Today Staff, February 17, 2012; Image: Dragon Oil