Ann: CEO Succession, page-53

AFR 16/07/15

Shots are yet to be fired in the potential Cooper Basin roll-up but the battle lines are being drawn. Beach Energy is understood to have Melbourne-based advisory firm Flagstaff Partners in its corner.
Kerry Stokes' Seven Group could be a catalyst for Cooper basin consolidation. Penny Bradfield
Shots are yet to be fired in the potential Cooper Basin roll-up but the battle lines are being drawn.

Beach Energy is understood to have Melbourne-based advisory firm Flagstaff Partners in its corner.

The news comes after Street Talk revealed Beach rival Drillsearch Energy had drafted in UBS and Goldman Sachs, ahead of potential consolidation in the South Australian oil and gas hub.

The main reason for the excitement is that Kerry Stokes' Seven Group has taken 19.9 per cent of Beach and Drillsearch. It appears the television, mining services and energy conglomerate plans to drive a merger of the two mid-sized oil and gas players, which would unlock significant synergies

Beach may draft in a large investment bank in addition to Flagstaff if a transaction is forthcoming.

The joint lead managers on Beach's rights issue in 2012 were Citi, Goldman Sachs and Macquarie Capital. Obviously, Goldman would be out of contention for a role given its involvement with Drillsearch.

Former Drillsearch chief executive Brad Lingo's shock departure from the company was interpreted by some in the market as a signal of a potential transaction.

UBS analyst Nik Burns pointed out that if the two companies merged, Lingo would likely lose his job, as Drillsearch is the smaller entity.