Hurricane Energy has found a new investor in private-equity fund manager Kerogen Capital, which is injecting 44.1 million British pounds (US$62 million) into the company for a nearly 30% stake, showing some rare appetite in oil deals amid weak prices.

The share placement is also raising another 8 million British pounds from existing shareholders Crystal Amber and Marlborough Fund Nominees, whose company ownerships will change to 15.1% and 1.3%, respectively.

The placing price of 15 pence per share was a 46.3% premium to April 15's closing price.

"[This] places Hurricane in a position to drill, test and evaluate two new wells on Lancaster this year," Robert Trice, Hurricane's CEO, said in a statement, referring to the company's North Sea concession.

Shares in Hurricane were up 29% at 0709 GMT, against a 3.2% drop in the European oil and gas index.

Hurricane plans to use the funds to finance the drilling of two wells at Lancaster and for general corporate purposes, it said. The first well is expected to be spudded early in the third quarter and oil could start flowing in 2019, it added.

Weak oil prices have meant energy buyers and sellers have struggled to agree on asset valuations, bringing deals in the sector to a near standstill.

High costs in the North Sea have also meant exploration has fallen to a 45-year low, making investments in new wells a rarity.

Hurricane also said it was in talks with "several parties" about bringing in a farm-out partner.

(US$1 = 0.7072 British pounds)

Offshore