West of Shetland oil and gas explorer Hurricane Energy said it agreed to be bought by London-based oil refining firm Prax Exploration & Production in a deal that values Hurricane at up to £249 million.

Hurricane put itself up for sale in November after receiving a takeover proposal it rejected as too low.

In December, its largest shareholder Crystal Amber Fund called for a vote on the removal of the firm’s top management.

Hurricane chairman Philip Wolfe said: “I am pleased by the outcome of what has been a thorough and exhaustive formal sale process.

“The Hurricane board believes that the acquisition will deliver more cash than Hurricane shareholders are likely to have received from Hurricane’s Lancaster oil field, on a much expedited timeframe, as well as mitigating the risks associated with production from a single well development.

“In addition, the deferred consideration units offer the opportunity to share in future production out-performance or higher oil prices, as well as revenue from future acquisitions by Hurricane.

“Accordingly, the board of Hurricane is pleased to recommend the acquisition to shareholders.”