The deal was effected by way of an agreed scrip takeover bid by FAR.

FAR managing director Michael Evans said, "The combination of FAR and Flow Energy will deliver ... an excellent mix of oil and gas experience at both a board and management level, prospective oil and gas exploration assets and strong cash reserves to progress these assets".

The Bakers team acting for Flow was led by corporate partner Richard Lustig, senior associate Yasmine Gardner and associate Simon Schenkel. The team worked closely with financial adviser RFC Corporate Finance Limited on the deal.

Corrs advised FAR on the transaction.

Lustig said the transaction was particularly interesting due to the parties preparing, agreeing and announcing all the transaction documentation on the same day.

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"It is certainly rare for parties to be able to release an agreed Announcement, signed Bid Implementation Agreement, Bidder's Statement and Target's Statement all on the same day," said Lustig, adding that given recent flatness in equity markets, he expected that unlisted companies, particularly in the resources sector, would look towards improving liquidity and unlocking value for their shareholders by methods other than traditional IPOs.

"As is the case with the Flow-FAR merger, we are noticing a trend for unlisted companies to negotiate scrip deals with existing listed entities or undertake back-door listings - these are relatively quick ways for companies to give their shareholders exposure to a listed, rather than unlisted, investment," he said.