Shares in oil explorer CNPC (Hong Kong) surged 100 per cent yesterday, fuelled by its $510.18 million purchase of a 54 per cent stake in an oil field in China. The loss-making company, formerly Paragon Holdings, soared to 27.5 cents - its peak for the past two years after trading resumed yesterday. It was also the most heavily traded stock, with 51.56 million shares changing hands. CNPC (Hong Kong) plans to fund the purchase by raising $152.02 million through an issue of 1.08 billion new shares priced at 14 cents, while the remaining $327.1 million will by paid by late 1997-98. The new shares, accounting for 28.51 per cent of enlarged share capital, will be sold to Sun World, a wholly-owned subsidiary of state-owned China National Petroleum Corp (CNPC). After the share sale, CNPC will see its 51.74 per cent stake in CNPC (Hong Kong) boosted to 65.5 per cent. Under the purchase agreement, the oil field will become 46 per cent owned by the parent. The oil field in the Xinjiang Uygur Autonomous Region, producing 3.34 million tonnes of oil in the past five years, has 1,361 wells drilled so far. CNPC (Hong Kong) will have rights to produce crude oil and natural gas at the oil field for 12 consecutive years, and is expected to start by the end of the year.