Ophir Energy in £118m takeover of Dominion

Dominion Petroleum today accepted an all-share, £118 million takeover bid from rival East African explorer Ophir Energy.

The company's shares leaped 40%, or 1.4p, to 5p, while Ophir, which only floated in July fell 7.7p to 234.5p.

The buy will increase Ophir's acreage in Tanzania, give the company an entry into Kenya and allow it to potentially drill one or two further wells over the next 18 months, it said.

Dominion said the takeover offer gave investors certainty at a time when its markets were difficult and it faced the likely need to raise new funds to expand exploration.