recommended takeover of ambassador by drillsea, page-17

Hello, AQO posters, thought it would take a look at what you were up to here as a DLS holder. I held ACN (INP as was) when DLS attempted t/o 1st time and failed. Bought DLS at the time and added more in 30-40c and sold at $1.75 after they discovered Bauer. Continued to buy ACN and happy DLS succeeded 2nd time round as you can imagine. Stuck with DLS up and down since, traded some lately but will always hold for long term as Brad Lingo is a shrewd operator (ie Cunning Lingo) and gas price rise is inevitable over next few years as we flog it to Asia. Merger with Beach or T/o by eg WPL is always a possibility.

Hello Oilyman, by the way, always wondered if you held some Oilys, now I know:) keep posting you know where, always valued...

EnergyNewsPremium.net article for you all

Drillsearch makes grab for Ambassador
Wednesday, 28 May 2014
DRILLSEARCH has made an off-market takeover offer to acquire 100% of Ambassador Oil and Gas through a bid implementation agreement.
Ambassador shareholders will be offered one Drillsearch share for every 5.4 Ambassador shares, implying a value of 29.3c per Ambassador share based on Drillsearch’s closing price of $1.58 yesterday.
As a result of this offer, Drillsearch would issue about 26.3 million shares in order to acquire 100% of Ambassador, resulting in Ambassador shareholders owning 5.7% of Drillsearch.
The directors of Ambassador have unanimously recommended the takeover in the absence of a superior offer, with several major shareholders in the company announcing they will vote in favour.
Drillsearch has entered into acquisition agreements with those major shareholders, under which it would assume 19.9% of Ambassador at the offered rate.
Fotoula Hatziladas and Eye Investment Fund, who collectively own 17.6% of Ambassador, have advised they intend to accept the offer within two weeks from opening.
Motivating the take-over is the prospect of consolidating Drillsearch’s dominant position in the Northern Cooper wet gas area through combining Ambassador’s 47.5% non-operated interest in PEL 570 with Drillsearch’s 80% owned and operated interest in the adjacent PEL 101.
Upon first entering the area through an acquisition of Acer Energy, Drillsearch conducted a 413sq.km 3D seismic survey over PEL 101, PEL182 and PEL 570.
The company considers the broader Northern Cooper wet gas project area is analogous to the Greater Tindilpie complex in the southern Patchawarra Trough, which is being developed by a Santos-operated joint venture.
According to both companies, Ambassador shareholders will benefit from the takeover deal through exposure to a balanced Cooper Basin portfolio anticipated to hit record production of 3-3.3 million barrels this financial year.
"The offer represents a compelling opportunity for all Ambassador shareholders to capture a premium for their shareholding, retain exposure to Ambassador’s key asset, and to become part of a profitable mid-tier oil and gas producer,” Ambassador chairman David Shaw said.
“The directors have unanimously resolved to recommend that shareholders accept the offer, in the absence of a superior proposal."