Ambassador Gives Update on Takeover Offer by Magnum Hunter, Drillsearch

The Magnum Hunter Offer

As at the close of trading Aug. 13, the implied value of the Magnum Hunter Offer is $0.2557 (AUD 0.275) per Ambassador Share, based on Magnum Hunter's closing stock price of $6.04 Aug. 13.

This implied value represents a premium of 41.13 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 Drillsearch's initial offer May 28.

The Magnum Hunter Offer is for 1 share of Magnum Hunter common stock for every 23.6 Ambassador Shares. The Magnum Hunter Offer is unconditional and is scheduled to close at 7.00pm (Sydney time) Aug. 22 (unless further extended).

However, at this time, acceptances of the Magnum Hunter Offer cannot be processed as a result of interim orders made by the Takeover Panel June 23. Accordingly, Ambassador Shareholders who accept the Magnum Hunter Offer will not receive the consideration whilst the interim orders remain in effect.

The implied value and premium of the Drillsearch Offer and the Magnum Hunter Offer will change as a result of market movements in the Drillsearch share price and Magnum Hunter common stock price. In the case of the implied value and premium of the Magnum Hunter Offer, these values will also be subject to foreign currency exchange movements.

In considering whether or not to accept the Drillsearch Offer, the Magnum Hunter Offer, or none at all, Ambassador Shareholders are encouraged to: