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Sunday, 20 July, 2008, 22:40 GMT | more prices >>

Anzon and Nexus gang rocks along



By Upstream staff 

Anzon shareholders are set to vote on the proposed merger with Nexus Energy after the outfit’s board found the deal to be fair and reasonable.

The vote will take place on 18 April in Sydney and the Anzon board of directors has unanimously recommended that Anzon shareholders vote in favour of the merger in the absence of a superior proposal.

Nexus’s offer of A$650 million (US$565 million) in cash and shares, tops a previous offer by Australian producer Arc Energy.

The merged company will have net proven plus probable reserves and best estimate contingent resources of 169 million barrels of oil equivalent and an enterprise value of A$1.5 billion, said the pair.

Nexus does not have any production, although it is developing the offshore Longtom and Crux fields in Australia, and it also has an exploration portfilio.

Nexus has received credit approval from Bank of Scotland for new debt facilities that, together with current cash reserves, will fund the cash component of its offer.

Anzon is the operator of the Basker-Manta oil project, which produces 4600 barrels per day of oil net to Anzon, but with much upside potential. Anzon's parent company Anzon Energy is in favour of the merger.


Thursday, 06 March, 2008, 07:23 GMT  | last updated: Thursday, 06 March, 2008, 08:43 GMT

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