SHARES in Bowleven surged 14% yesterday on renewed speculation that the Edinburgh-based oil and gas firm could attract a takeover bid.

This came amid market talk that West Africa-focused Bowleven may be a target for Tullow, the FTSE 100 listed firm which made bumper finds off Ghana.

Tullow was also mooted as a likely bidder for Bowleven last month.

On February 17, shares in Bowleven rose 62%, to 120p, after Dragon Oil said it was in the early stages of considering a bid. The firm, 52% owned by Dubai's national oil company, walked away on February 28 without getting into detailed talks, sending shares tumbling.

Both Bowleven and Tullow declined to comment on the rumours yesterday.

Informed market sources said there was nothing in the talk linking Tullow and Bowleven. While stock-market listed companies would be expected to make an announcement if they knew of a reason for an unusual movement in their share price, they are not required to make any comment where they know of no reason.

Shares in Bowleven closed up 12p at 97p.

Bowleven has embarked on an extensive drilling programme which it hopes will confirm that its acreage off Cameroon contains finds of a commercial size.

It would require hefty investment to bring any fields into production.