Mosaic Oil (ASX:MOS) says AGL Energy Ltd's (ASX:AGK) proposed takeover of the oil and gas producer has been given the green light by an independent expert.

PricewaterhouseCoopers Securities Ltd has advised that the proposed scheme of arrangement is fair and reasonable and in the best interests of Mosaic shareholders.

Mosaic entered into the scheme with AGL on 14 July, after which the board commissioned the independent report.

PricewaterhouseCoopers has assessed the fair market value of Mosaic shares to be in a range of $0.128 to $0.197 cents.

Both the cash and scrip consideration offered by AGL has also been determined to be within the valuation range considered fair.

Mosaic Oil reported a net profit of $7.3 million for the year ended 30 June 2010, up 181 per cent on the year before.