Endeavour International Corp. (NYSE: END) has raised its total working interest in the Alba oil field in the UK central North Sea to 25.68 percent, and its shares shot up as much as 81 percent on Thursday.
The Houston, Texas-based oil and gas company announced it has acquired the additional 23.43 percent working interest in the Alba field from ConocoPhillips (NYSE: COP), taking its total working interest in the field to 25.68 percent.
The Alba oil field, with current production rate of 7,500 barrels of oil equivalent per day (boepd), is a late Eocene reservoir that has been producing since 1994.
Late last year, Endeavour agreed to acquire ConocoPhillips' interest in three producing U.K. oil fields in the Central North Sea, including Alba, for $330 million.
Partners in the Alba field include Statoil with 17 percent working interest, BP (BP) with 13 percent working interest, Total (NYSE: TOT) with 12.65 percent working interest and CIECO/Itochu with 8 percent working interest.
Following the closing of the Alba deal, Endeavour said the net proceeds from the 2018 Notes offering have been released from escrow. The proceeds have been used to fund the acquisition and to repay outstanding amounts under the Senior Term Loan.
Endeavour is currently moving forward with three major development projects in the United Kingdom sector of the North Sea and has added a new focus area in the United States that includes significant positions in highly prospective gas shale and frontier plays.
The company's five-year goal is to grow production, balanced between assets in the U.S. and U.K., to 40,000 boepd.
The stock rose 70.65 percent, or $4.14, to trade at $10.00 on Thursday. Over the past year, shares have been trading between $5.73 and $16.43. Providing quality reviews, articles and writings on crude oil, energy and gas online.
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