Drillsearch Energy & Innamincka Petroleum Friendly Merger

Oil and gas producer, Drillsearch Energy (ASX:DLS) has agreed to a "friendly merger" with Innamincka Petroleum (ASX:INP) through an agreed scheme of arrangement. In a joint statement to the Australian share market, the companies stated that the merged companies will have a market capitalisation of $150 million and create the Cooper Basin's "leading mid-tier oil and gas company". The companies have operations in Cooper/Eromanga Basins in South Australia and Queensland.

Innamincka Petroleum Shareholders

Innamincka Petroleum shareholders will receive 2.5 Drillsearch Energy shares for each of their shares. This arrangement gives Innamincka share holders an implied value of 16 cents per share – an 80 percent premium on top of its last traded price of 8.9 cents per share. The merger deal still requires court approval as well as approval of Innamincka Petroleum shareholders.