Oil and gas producer Beach Energy Ltd
(ASX:BPT) has announced it will consolidate its Cooper Basin assets by merging with Impress Energy Ltd
(ASX:ITC).
Subject to shareholder approval, the boards of both companies have unanimously agreed to merge through a scheme of arrangement.
The proposed merger would see Impress shareholders receive 8.25 cents per share, valuing Impress at $73.1 million.
Beach says the deal will add significant financial strength to its business and accelerate the development of Impress assets in the Cooper Basin.
The company also says the merger is in line with its growth strategy to double production and reserves in the next two to five years.
Beach Energy’s net profit slumped over 80 per cent in fiscal 2010 to $33.1 million in the year to 30 June.
