The slump in the oil price is set to claim its first corporate casualty as Ophir Energy, the FTSE 250 explorer, closes in on Salamander Energy.
The two companies are expected to release statements to the stock exchange today confirming that they are in advanced discussions about a possible £275 million deal. It is understood that they are close to agreeing a price but there is no guarantee that a deal will go ahead.
Another suitor, Cepsa, the Spanish group controlled by Ipic, the Abu Dhabi investment fund, is also said to be circling Salamander Energy. It is not known how far advanced its bid is.
Salamander faces a possible cash crunch after a £174 million deal to sell a stake in its Bualuang oilfield