Ophir Energy has made a successful offer to acquire Dominion Petroleum. The all-share deal valued at £118 million ($186 million) will significantly add to Ophir's current East African acreage holding.

Through the offer Dominion would earn 0.0244 New Ophir Shares for each Dominion Share. The Offer values the entire issued and to be issued share capital of Dominion and the Dominion Convertible Notes at £118.2 million ($186.3 million), with each Dominion Share valued at 5.9 pence based on the closing price of 242.2 pence per Ophir Share on 12 October 2011.

The acquisition is expected to give further boost to Ophir's core East Africa play that garnered three consecutive deep-water discoveries. The offer would add to the company's Tanzania acreage with the addition of Block 7 (80 percent) and provide Ophir entry to offshore Kenya through Block L-9 (60 percent) and Block L-15 (100 percent), Ophir detailed in a statement.

Ophir's exploration campaign for the next 18 months looks promising with the company set to drill one or two additional wells in its operated acreage, and is well funded to see its plans through to drilling the company claims.

Commenting on the Offer, Nick Cooper, chief executive officer of Ophir, said: "Ophir has been at the forefront of exploration efforts in deepwater Tanzania and has developed a detailed technical understanding of this emerging East Africa offshore play. The addition of Dominion's assets to our portfolio positions Ophir as the largest independent net deepwater acreage holder in East Africa with a portfolio of seven offshore blocks at high equity levels in highly prospective acreage offshore Tanzania and Kenya. There are significant potential geological, operational and commercial synergies in bringing these portfolios together and we are confident that the combined group will maximise value for shareholders from the exciting position we will command.

"East Africa is experiencing an upsurge in industry attention, partly as a result of Ophir's previous deepwater discoveries, with the involvement of many large oil and gas companies who are scheduled to drill high-impact exploration wells adjacent to the Ophir interests in the near-term.

"Ophir is strongly funded to deliver a sustained drilling programme across its East African portfolio and will seek to accelerate its exploration activities across the region to include the newly acquired blocks."

Tags: Ophir Energy