The Drillsearch Energy offer has a 68.57% to the closing price of shares 23 May 2014, the last day of trading before the company was placed in a halt.
Magnum Hunter Resources’ offer has a premium of 91.55% on that same closing price.
Ambassador then put the ball in the court of the shareholders comparing the benefits of both offers.
“[Shareholders should accept the offer if] you wish to retain and increase your exposure to the Cooper basin with an investment in Drillsearch, consistent with your initial investment in Ambassador and the risk profile of holding Drillsearch shares is acceptable to you,” the company said.
Shareholders were encouraged to take the Magnum offer if they preferred to have exposure to the New York Stock Exchange and want a higher implied premium for shares.