US focussed oil and natural gas explorer Sundance Energy Australia Limited
(ASX:SEA) has announced plans to merge with fellow explorer Texon Petroleum Limited
(ASX:TXN).
The all-scrip deal will see one Sundance share issued for every two Texon shares and has been backed by both boards.
Following the merger the existing Sundance board will remain but all current Texon directors will resign, becoming the board of Talon Petroleum.
Talon Petroleum will become a new listed vehicle which will enable Texon shareholders to retain non Eagle Ford Shale assets.
The merger via scheme of arrangement is still subject to shareholder and court approvals.
Shares in Sundance Energy last traded at $0.82 cents while shares in Texon Petroleum last traded at $0.36 before being placed into a trading halt.
Sundance Energy Australia reported a net profit of almost $6 million in the 2012 financial year.
