Beach Energy
(ASX:BPT) has entered into a binding merger implementation agreement with Drillsearch Energy.
Beach Energy has agreed to acquire all shares in Drillsearch that it does not already own via a scheme of arrangement.
Drillsearch shareholders will receive 1.25 Beach shares for each Drillsearch share held.
The oil and gas producers told shareholders that the merger is a logical combination of two complementary, overlapping businesses, with the opportunity to generate significant value for shareholders of both companies.
Beach Energy recorded a net loss of $514 million at 30 June 2015.
