Beach Energy Ltd is pleased to announce that it has completed due diligence on Impress Energy within the timeframe contained in the Merger Implementation Agreement for its proposed merger with Impress.
Beach Managing Director Reg Nelson said: “We are pleased to have met our due diligence requirements on schedule and look forward to successfully completing the merger in early 2011.”
Beach and Impress announced on 22 November, 2010 that they have agreed to merge via an all-cash Scheme of Arrangement. Under the terms of the proposed merger, Impress shareholders will receive 8.25 cents per share, valuing Impress at $73.1 million. The merger allows Impress shareholders to receive a significant premium for their shares.
Entities associated with Impress Non-Executive Chairman, Mr Eddie Smith and fellow Impress Director Mr John Gillon have entered into option agreements with Beach under which the associated entities have granted to Beach options to acquire part of their shareholdings in Impress in certain circumstances, at 8.25 cents per Impress share, that would lift Beach’s holding to 19.9%.
Subject to the Scheme being approved, Beach will assume the significant funding obligations required to develop Impress’s Cooper Basin assets and the risks associated with the development of the Company’s exploration portfolios.
Beach currently operates 19 oil fields in the Cooper-Eromanga Basins with five gas discoveries awaiting development. It owns an approximate 21% interest in the Cooper Basin project operated by Santos Limited, while Impress has interests in three producing fields and four oil discoveries operated by Victoria Petroleum.
Source: Beach Energy , November 30, 2010