Exploration company Tullow Oil has purchased Australia's Hardman Resources for 1.1 billion Australian dollars, it was announced today.
The Dublin- and London-listed oil and gas producer is expected to continue with its expansion plans after today's deal, which will see the company increase its total production by 6,000 barrels a day.
Tullow will pay 2.02 Australian dollars per share to Hardman shareholders, a 54.2 per cent premium over Hardman's closing price on Friday of 1.31 Australian dollars but below the peak Hardman 's shares reached in April before a disappointing start for a Mauritanian project knocked investor confidence.
Today's deal, struck as crude oil prices fell from the record levels reached in July, will tie Europe's second largest independent exploration and production firm by market value to its Australian joint venture partner in a project in Uganda and will broadens Tullow's scope elsewhere in Africa.
Sales at Tullow grew 54 per cent to £310.7 million in the first six months of 2006 from £201.4 million during the same period in 2005. Operating profits grew at a similar rate in the first half to £161 million from £104 million during the first six months of 2005.
Additional reporting: Reuters