Viaro Bidco has struck an agreement to buy Deltic Energy for just under £7million as it looks to expand its upstream operations in the North Sea.
As part of the takeover, Viaro has agreed to pay 7.46p per share for the entire issued and to be issued share capital of Deltic.
The figure represents a premium of 36% on Friday's closing share price of 5.5p per share.
The acquisition values the entire Deltic share issue at approximately £6.9million.
Viaro will also provide a £2.7million bridging loan to Deltic has sufficient working capital up to the point the acquisition is complete.
Commenting on the acquisition, Francesco Mazzagatti, CEO of Viaro Energy, said: "Deltic's portfolio represents a natural fit with Viaro's existing assets and strategic focus in the North Sea.
"The Selene discovery is a key driver for this acquisition, which forms an important component of Viaro's recently announced transaction with Shell and ExxonMobil, as well as within the broader basin context.
"The transaction reflects our commitment to advancing key developments responsibly and with the continuity they require.
"By working with joint venture partners to overcome the economic challenges imposed by the current fiscal uncertainty, we aim to ensure that important developments like Selene can be successfully progressed towards production in a timely manner, and with the right level of technical and financial support."
Andrew Nunn, CEO of Deltic, said: "Despite the difficult political and fiscal backdrop impacting the UK E&P industry over a number of years, the achievements of the Deltic team and the quality of our assets have been recognised by Viaro.
"This transaction provides certainty for Shareholders as well as our staff, regulators and joint venture partners who are progressing the Selene opportunity towards development for the benefit of the UK's future energy needs.
"We are looking forward to working with the wider Viaro team as we continue to move the Selene and Blackadder opportunities towards production and applying our proven exploration expertise to Viaro's existing and expanding portfolio of Southern North Sea licences."
Commenting on the acquisition, Mark Lappin, Chairman of Deltic said: "I couldn't be prouder of the journey and work of the small team within Deltic.
"They have progressed two major gas discoveries from two wells drilled. Given the capital required to progress our exploration successes to the next stage, it is the right time to change direction.
"The Acquisition by Viaro gives the Deltic business access to a different funding model, which is better suited to the current business environment and aiming to ensure discoveries are progressed and gas will be delivered to where it is needed."