Savannah Energy has said that it was in exclusive talks to buy U.S. oil producer Exxon Mobil Corp’s interest in two energy assets in Chad and Cameroon.
The British oil and gas producer is proposing to buy a 40 percent operated interest in the Doba oil project in Chad, and a 40 percent interest in the Chad-Cameroon oil transportation pipeline.
The company’s London-listed shares were last up nearly 7 percent at 19.25 pence.
Exxon did not immediately respond to a request for comment. Savannah Energy, which currently only operates in Nigeria and Niger, did not disclose the financial terms in the discussion.
Savannah Energy on Wednesday asked for trading in its shares to be suspended until it publishes details of the proposed deal or confirms that the talks have ended.
The Doba oil project produced gross 33,700 barrels of oil per day (bopd) on average, while the Chad-Cameroon pipeline transported gross 129,200 bopd last year, the British company said.