(MENAFN) UK's Cairn Energy plans to acquire Norway's Agora Oil & Gas for USD450 million, in a bid to boost its drilling activity in Britain and Norway this year and expand its lower risk, near-term exploration assets, Reuters reported.
The company outlined its strategy in March, aimed at reducing its exposure to exploration in Greenland where its operations are concentrated.
The company, which earlier hinted about its interest in the Mediterranean region, did not rule out further acquisitions this year.
CEO Simon Thomson said that the company would resort to more options other than only M&As to increase its portfolio like new license applications, farm-in transactions and asset deals.
The oil explorer has been focusing on its operations in Greenland over the past two years, but the company has failed to find oil and is seeking new projects that can offset its exposure to the country.
The company has enough liquidity to finance more transactions with USD1.2 billion in cash available, even after returning USD3.5 billion to shareholders earlier this year.
The company also has the option to raise additional funds by selling its remaining 22 percent stake in its Indian business, Cairn.
Agora, currently owned by RIT Capital Partners PLC (RCP.L) together with Lord Rothschild's family interests and company management and staff, had gross assets of about USD120.1 million.