London-listed upstream independent Sound Oil has called off its hostile takeover bid for Canada-based Ireland explorer Antrim Energy, as falling oil prices reduce the attractiveness of deepwater exploration.
Sound Oil went hostile in its pursuit of Antrim at the end of November, saying at the time the deal would deliver "a more diverse portfolio, added scale and increased investor appeal." But the offer, which valued Antrim at around £6.35mn ($9.9mn), has now been withdrawn "following the continued deterioration of the oil price and the resultant reduction in global appetite for deep water exploration."
Sound Oil has interests in 18 licences in Italy. Its first producing asset, the onshore Rapagnano gas field, came on stream last year.
Antrim's focus is on the UK North Sea and Ireland. Its principal asset is a 25pc interest in the highly prospective Skellig block offshore Ireland, after it sold its producing North Sea assets in April.
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