Scotland business

Bowleven shares soar on possible bid

Bowleven oil installation
Image caption Last year Bowleven reported "considerable progress" in its drilling campaign off Cameroon

Oil and gas explorer Bowleven's share price has soared on news of a possible takeover bid.

Its shares climbed in value by more than 70% shortly after Dubai-based Dragon Oil announced it was considering making an offer for the Edinburgh firm.

Dragon told the stock market it was in the preliminary stages of exploring a possible offer for all of Bowleven's share capital.

It has until 16 March to confirm whether it will make an offer.

The oil and gas exploration and production firm's principal producing asset is in the eastern section of the Caspian Sea, offshore Turkmenistan.

At 14:30, Bowleven shares had risen in value by 73.31% to 128.25.

In a statement, Bowleven said it noted Dragon's announcement and would "make any further announcement as may be required in due course".

Late last year, Bowleven reported it had made "considerable progress" in its west Africa drilling campaign, having written down earlier unsuccessful exploration costs.

The company said it had enjoyed successful multi-well exploration and appraisal drilling off Cameroon during the year, with oil finds at all of the Sapele wells it had drilled.

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