Angus Energy said it had agreed to form a new partnership with Cuadrilla Balcombe and Lucas Bolney with regards to the UK's Balcombe oil field.
Angus Energy would join the partnership through the acquisition of a 25% interest in licence PEDL244, which includes the entire Balcombe field discovery. It would also assume operatorship of the Balcombe licence.
Angus Energy said it would a pay a cash amount of around £4m in two parts, along with costs of a well test program of Balcombe-2Z.
It would pay within 20 working days of January 20 a sum of £2m less £150,000 already paid under a confidentiality agreement with the sellers, plus another £2m following regulatory approval of the deal.
At 2:58pm: (LON:ANGS) Angus Energy Plc share price was -0.48p at 9.5p