Israel-based oil and gas group Energean PLC has splashed out US$750mln on a suite of gas assets in the Mediterranean, North Sea and Europe.
The acquisition is from US oil giant Edison and will add the gas equivalent of 292 million barrels of reserves and production of 69,000 barrels per day to Energean.
Mathios Rigas, chief executive, said the acquisition establishes Energean as the leading independent, gas-focused E&P company in the Mediterranean.
“It will diversify Energean into a multi-country, multi-asset, full-cycle E&P company with scale, material cash flows, significant growth and portfolio optionality.“
Added to the production scheduled to come on stream from the Karish and Tanin fields, production is set to rise to 140,000 barrels equivalent per day by 2021 and to 200,000 barrels once a floating platform hits full capacity.
Edison's portfolio is generating underlying profits of US$434mln and operating cash flow of US$302mln.
Energean will fund the deal through a US$265mln share placing (£211mln) and a US$600mln debt facility.
Shares will be issued today through a bookbuild programme.
The acquisition marks a rapid rise for the Israeli group, which listed last year with a valuation just short of £700mln and is now worth £1.29bn.
Energean acquired its interest in the Karish and Tanin fields – hosting around 3trn cubic feet of gas – from another Isreali firm Delek, which retains royalties over future production.
Shares rose 9% to 914p.