Ambassador Gives Update on Takeover Offer by Magnum Hunter, Drillsearch

Ambassador Oil & Gas Limited (Ambassador) referred Thursday to Magnum Hunter Resources Corporation (Magnum Hunter) ASX (Australian Securities Exchange) announcement dated Aug. 13. In that announcement, Magnum Hunter stated it has no present intention to increase the consideration being offered under the Magnum Hunter Offer and it has no present intention to extend the offer period (but reserves the right to do so in both cases).

Ambassador is also subject to a competing unconditional takeover offer by Drillsearch Energy Limited (Drillsearch).

Updated Implied Values as at Close of Trading on Aug. 13

Given the length of time since the despatch of Ambassador's Target's Statements in response to the Drillsearch Offer and the Magnum Hunter Offer, updated implied values of both offers are set out below.

The Drillsearch Offer

As at the close of trading Aug. 13, the implied value of the Drillsearch Offer is $0.304 (AUD 0.327) per Ambassador Share, based on Drillsearch's closing share price of $1.39 (AUD 1.495) Aug. 13.

This implied value represents a premium of 67.62 percent to the closing price of Ambassador shares of $0.1813 (AUD 0.195) May 23, being the trading day before Ambassador entered into a trading halt pending announcement of Drillshearch's initial offer May 28.

The Drillsearch Offer is for 1 Drillsearch Share for every 5.4 Ambassador Shares plus $0.0465 (AUD 0.05) cash for every Ambassador Share. The Drillsearch Offer is unconditional and is scheduled to close at 7.00pm (Sydney time) Aug. 27 (unless further extended). The Drillshearch Offer is now open for acceptance.


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