Legendary Investments has agreed to acquire an interest in Circle Oil Tunisia Limited, which owns the El Mediouni East and Central oil asset (ELM) in the Mahdia permit in the Gulf of Hammamet, in exchange for its interests in Manas Resources.
The permit duration and work programme are in the process of being finalised.
Legendary will receive an interest of up to 2% in CTOL.
Legendary's interest in Manas is valued in its books at £100,000.
Legendary said: 'COTL underwent a restructuring process following the liquidation of its parent company, Circle Oil Plc and is now under new management.
'Other assets of the former Circle Oil portfolio in North Africa and the Middle East have been shown by others to be commercially attractive, and COTL is confident that the Tunisian offshore tracts will also be commercially attractive.
'Over the past 5 years Circle Oil invested heavily in ELM, and in August 2014 announced a potential large discovery following preliminary results from ELM which were internally estimated by Circle Oil as potentially recoverable prospective resources of approximately 100 million barrels of oil.'
Executive chairman Zafar Karim said: 'We are pleased to have parlayed our interest in Manas into an interest in ELM.
'We expect that the ELM is more likely to come to fruition and in in a shorter timescale and possibly at a greater value than Manas.'
At 8:00am: (LON:LEG) Legendary Investments PLC share price was +0.01p at 0.18p