PA Resources AB, a Swedish oil and gas exploration company operating in Africa, jumped the most in more than seven years in Stockholm trading after negotiating an agreement for the Zarat Field in Tunisia.
PA Resources rose as much as 50 percent, the steepest intraday gain since June 2005 and only the second time it has exceeded 45 percent during a day. The shares traded 0.07 krona higher at 0.27 krona as of 3:01 p.m. in Stockholm, valuing the company at 153 million kronor ($23.1 million). Volume was almost seven times the daily three-month average.
The company reached a tentative agreement on a joint deal which straddles across territories, or a so-called unitization agreement, it said in a statement today. The pact is with Sonde Resources Corp., the Zarat license holder, and approval by the Tunisian government is expected in the second quarter next year, PA Resources said.
“Preliminary results indicate that the gas recycling option is a viable production option which will allow the production of oil and condensate in advance of gas blow-down,” PA Resources said in the statement.