To fund the acquisition of a stake in Nigeria’s OML 30 oilfield, London-listed Heritage Oil Plc has said it will sell a 26 percent stake in its Iraqi gas block to Genel Energy and will take a $294 million loan from the company.

The FTSE 250 listed oil company, whose shares jumped 18 percent after it made the announcement, initially intended to offer new shares to raise funds for the acquisition of a portion of the Nigerian oilfield before the option was eventually dropped.

Reuters quotes Heritage Oil Chief Financial Officer Paul Atherton as saying: “There is no need to proceed with the rights (issue) and any capital raising is dropped.”

Heritage oil which has signed a joint operating licence with its prospective lender, will also sell its interest in the agreement, increasing Genel’s stake in the block to 51 percent.

The undisclosed Heritage-proposed stake in the OML 30 oilfield will cost $450 million.

On London Stock Exchange (LSE), Heritage’s shares rose to 18 percent at 197.98 pence ($3.1) at 1353 GMT on Tuesday.

Genel Energy International Limited is the largest oil and gas company in the Kurdistan region of Iraq with six joint operating agreements with the regional government and independent oil and gas exploration licences in the region.