PERTH (miningweekly.com) – The A$384-million merger between ASX-listed Beach Energy and Drillsearch Energy has been completed, after all conditions relating to the scheme of arrangement were satisfied.
Under the terms of the agreement, Beach had agreed to acquire all Drillsearch shares through a scheme of arrangement, with Drillsearch shareholders offered 1.25 Beach shares for every Drillsearch share held.
Drillsearch shareholders would now be issued with their new Beach shares, with share trading expected to start on March 2.
“This has been a well supported transaction, given the complementary nature of Beach and Drillsearch’s asset portfolios, and completion marks a significant milestone in the history of both companies,” said Beach acting CEO Neil Gibbins.
“From Beach’s perspective, the merger provides an additional 19 000 km2 of gross acreage within our core Cooper basin area. It delivers full ownership of our key Western Flank oil and gas permits, expands our gas and gas liquids acreage, and provides an enlarged exploration footprint.”
Gibbins said that Beach’s focus would turn to integrating the Drillsearch assets, with the company initially targeting cost reductions and portfolio optimisation.
“We aim to have integration completed by June 30, allowing a large portion of the expected A$20-million in synergies to be realised during the 2017 financial year.”