Proxima Capital Group has confirmed it is in “very early” talks with exploration group JKX Oil & Gas, after shares in the Ukraine and Russia-focused firm soared today.
JKX's share price jumped more than 57 per cent shortly after midday today, and has since dropped back down slightly, although was trading up around 34 per cent at pixel time at around 25p per share.
However JKX's share price has tanked over the past 12 months, coinciding with the duration of the conflict in Ukraine.
Proxima issued an alert confirming it was considering a potential offer for the company.
The firm said it intended to approach the board to discuss its proposals.
“There can be no certainty that a firm offer will be made nor as to the terms on which any offer might be made,” it added.
Either way, a firm offer must be made by March 5 or Proxima has to walk away from the deal.