Ithaca Energy Inc. announced that it reached agreement to acquire Valiant Petroleum PLC for 203 million pounds in cash and stock deal.

Ithaca said in a statement that shareholders at Valiant are set to receive 307 pence in cash and 1.33 shares in Ithaca for each Valiant share under the deal, which would help it double its production forecast from North Sea oilfields in 2013.

Ithaca will use its existing cash resources and a bridge credit facility from The Bank of Nova Scotia, BNP Paribas, and Banc of America Securities Ltd. to fund the deal.

The offer shows a premium of 37% to the closing price of Valient on the London Stock Exchange as shares at Valiant rose toward the offer price while stock in Ithaca declined by 10%.

Through the deal, Ithaca will be also gaining about $500 million in British tax allowances.