Beach and Drillsearch enter merger agreement

Drillsearch Chairman Jim McKerlie.

Drillsearch Chairman Jim McKerlie.

Beach Energy and Drillsearch Energy have entered into a binding merger implementation agreement that will result in an entity worth around $A1.1 billion.

Under the terms of the agreement, Beach has agreed to acquire all of the shares in Drillsearch that it does not already own via a scheme of arrangement in which Drillsearch shareholders will receive 1.25 Beach shares for each Drillsearch share held.

The Directors of Drillsearch have unanimously recommended that all Drillsearch shareholders vote in favour of the scheme.

“This is a common sense combination of two Cooper Basin businesses sharing significant core assets,” Beach Chairman Glenn Davis said.

“The proposed merger will provide both Beach and Drillsearch shareholders exposure to a more efficient, cost effective and diverse Cooper Basin business with larger production and reserves, delivering real benefits to all shareholders.”

This story first appeared on PPO News. For more information on the merger, click here.

Enter your details to subscribe to the free fortnightly Gas Today e-newsletter

Thank you for signing up for the Gas Today Online Update.