Herbert Smith advised Bank of Scotland on a $300m (£206.13m) loan facility to oil and gas exploration and production company Dana Petroleum.

The company will use the money to purchase Toronto Stock Exchange-listed oil and gas exploration and ­production company Bow Valley, which focuses mainly on the UK North Sea.

Herbert Smith banking partner Jason Fox led the team, working alongside partner Ewen Fergusson.

Bank of Scotland will ­provide Dana with a three-year revolving credit facility that includes an initial ­commitment of $300m.

Fox said: “The low oil price and restricted access of many companies to bank funding have created a number of acquisition opportunities in the oil and gas sector that companies like Dana with stronger ­balance sheets are well placed to take advantage of.”

Allen & Overy and Canada’s Blakes are advising Dana on the acquisition, while McGrigors advised Dana on the loan facility.