Beach Energy and Drillsearch Energy have entered into a binding merger implementation agreement that will create a mid-cap oil and gas company through an all-scrip merger.
The created company will have a market capitalisation of approximately $1,169 million.
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, the company revealed in a statement.
Drillsearch shareholders will receive 1.25 Beach shares for each Drillsearch share held.
The merger will create a company with combined FY 2015 production of 12.1 MMboe and an expanded portfolio of oil, gas and infrastructure assets.
The directors of Drillsearch unanimously recommend that all Drillsearch shareholders vote in favour of the scheme.
Image: Beach Energy