Australia's Beach Energy Limited disclosed Tuesday that all conditions relating to the scheme of arrangement (Scheme) to merge Beach and Drillsearch Energy Limited (Drillsearch) have been satisfied. As a result, the Scheme has been implemented and Drillsearch is now a wholly owned subsidiary of Beach.
Issue of new Beach shares to Drillsearch shareholders will occur today, and trading of these shares will commence on Wednesday, March 2, on a normal settlement basis.
Acting Chief Executive Officer, Neil Gibbins, said “This has been a well supported transaction given the complementary nature of Beach and Drillsearch’s asset portfolios, and completion marks a significant milestone in the history of both companies. From Beach’s perspective, the merger provides an additional 7,336 square miles (19,000 square kilometers) of gross acreage within our core Cooper Basin area. It delivers full ownership of our key Western Flank oil and gas permits, expands our gas and gas liquids acreage, and provides an enlarged exploration footprint.
Our focus now turns to integration, which will initially target cost reductions and portfolio optimization. We aim to have integration completed by June 30, allowing a large portion of the expected $14.23 million (AUD 20 million) in synergies to be realized during FY17.”
In relation to the merger, and as announced on Feb. 3, Belinda Robinson and Robert Cole have resigned from the Board, and Jim McKerlie and Phillip Bainbridge have joined the Board as non‐executive directors. These changes take effect today.
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