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Firms advise on $1.2bn oil company merger

Firms advise on $1.2bn oil company merger

Forster-Ron

Australia's largest onshore oil producer has acquired Drillsearch Energy Limited, creating a combined business market capitalisation of $1.2 billion.

Firms: Minter Ellison (Beach Energy Limited); Ashurst (Drillsearch Energy Limited)

Deal: Beach Energy Limited will acquire all of the shares in Drillsearch Energy Limited.

Value: $1.2 billion

Area: M&A

Key players: Minter Ellison’s team included Ron Forster (pictured), Sam MacGibbon (partner, energy and resources), senior associates Kylie Quinlivan and Sue Yim and lawyers Stephanie Dellosa and Dimitri Kallis. Ashurst’s team included Bill Koeck and Anton Harris.

Deal significance: According to a release by Minter Ellison, Beach Energy Limited and Drillsearch Energy Limited announced they have entered into a merger implementation agreement under which, subject to shareholder approval and other conditions, Beach will acquire all of the shares in Drillsearch for an all scrip consideration. 

Beach Energy is a South Australia-based oil and gas exploration and production company, and is Australia's largest onshore oil producer. Its operations and those of Drillsearch are focused in the resource-rich Cooper Basin.

Once completed, the combined business will have a market capitalisation of $1.169 billion, revenue of $978 million, an expanded portfolio of oil, gas and infrastructure assets, and annual production of 12.1 million barrels of oil equivalents.

Drillsearch shareholders will receive 1.25 Beach shares for every Drillsearch share, valuing Drillsearch at around $384 million.

The combined business would have a market capitalisation of $1.169 billion (based on current market capitalisation).

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