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Oil company Reabold Resources said it had acquired another 16.7% stake in the West Newtown field in eastern Yorkshire from Humber Oil & Gas, for a mixture of cash and shares.
The purchase, which would lift Reabold's holding in the asset to around 56%, involved a cash payment of £1.4m and issue of 350m shares.
The company also said it had agreed to a £5m discretionary equity facility with Acuitas Capital.
Reabold said the funding would provide increased liquidity without the need to dilute shareholders via an equity raising.
The agreement, spanning 24 months, gave Reabold the right to issue new shares in the company to Acuitas for an aggregate amount not exceeding £5m.
Co-chief executive Stephen Williams said the company had upped its stake in the prospect at a 'highly attractive' price.
'Our increased investment should facilitate the unlocking of the large potential value we see at West Newton and we look forward to the upcoming activity, including the drilling of the B-1 well where site construction is currently underway,' Williams said.
'Whilst current macro conditions are throwing up substantial challenges for the industry as a whole, the ability to act opportunistically to enhance shareholder value during low points in the cycle is a key aspect of the Reabold strategy.'
At 9:20am: (LON:RBD) Reabold Resources Plc share price was +0.01p at 0.61p