Hague Oil surges after acquiring stake in Duyung project

Shares in Hague and London Oil surged more than 125% on Wednesday, after the oil explorer said it signed a conditional deal to acquire a stake in the Duyung production sharing contract in Indonesia.

Under the terms of the agreement, Hague will take an 85% stake in the project from Singapore-based West Natuna Exploration, which will retain the remaining 15%, and will invest $500,000 in working capital in the project.

The London-listed company said the contract, which will expand the group’s operations in southeast Asia, includes the undeveloped Mako natural gas discovery and nearby infrastructure.

"Duyung is a relatively low risk, low cost but high reward opportunity demonstrating robust indicative economics even within the current environment,” said group chairman and interim chief executive Andrew Cochran.

“It's a great addition to our portfolio and materially expands our presence within the new core area of Southeast Asia.”

Hague and London shares were up 144.91% to 16.23p at 1108 BST on Wednesday.