Drillsearch Energy Ltd and Innamincka Petroleum Ltd
agree to friendly merger
· Drillsearch and Innamincka agree to friendly merger via Scheme of Arrangement subject to Innamincka shareholder approval
· Innamincka shareholders to receive 2.5 Drillsearch shares for each Innamincka share
· Scheme has implied value of 16 cents per Innamincka share – a premium of
80% over the previous trading days close
· Strong strategic rationale for combining complementary Cooper assets of the
two companies
· Scrip consideration represents a fair price for both Drillsearch and Innamincka shareholders
The Boards of Drillsearch Energy Limited
(ASX:DLS) and Innamincka Petroleum Limited
(ASX:INP) are pleased to announce that they have unanimously agreed to merge by way of Scheme of Arrangement (Scheme) and create the Cooper Basin’s leading mid-tier oil and gas company, which
will provide:
· A market capitalisation expected to be in excess of $150 million providing Innamincka shareholders with the benefits of greater liquidity and through Drillsearch’s membership, participation in the All Ordinaries Index.
· A leading position in quality oil and gas production, development and exploration permits and projects across the Cooper Basin.
· Existing commercial relationships with a strong JV partner in AGL to assist with the development of Cooper Basin gas commercialisation plans.
· A strong combined 2P oil and gas current reserve position of 4.2 MMBOE including 2.2 mmbls of hydrocarbon liquids.
· Significant oil and gas 2C Contingent Resources position of 8.4 MMBOE (DLS contingent resources: Tintaburra 0.3 MMBOE + PEL 106A 5.5 MMBOE; INP contingent resources of 2.6 MMBOE).
· Significant upside potential from a focussed appraisal and development approach to the Flax and Juniper Tight Oil discoveries currently considered to be separate fields with OOIP of 70mmbbls (gross); a combined accumulation has been estimated to potentially contain up to 170 mmbbls OOIP (gross) or 64mmbbls OOIP (net).
· Increased oil exploration exposure across the Western Flank Oil Fairway with major positions in PEL 91 (60%) and PEL 182 (37.6%) with over 40 2D/3D defined Namur Sandstone and Birkhead Formation oil prospects.
