Australian duo 88 Energy and XCD Energy plan to merge to create an Alaska-focused exploration company.

The pair have entered a bid implementation agreement which will see 88 Energy offer 2.4 new 88 Energy shares for every XCD share and 0.7 new shares for every XCD listed option.

The share offer values XCD’s shares at A$0.012 (US$0.008) each, representing a 71% premium to the closing price of XCD’s shares on Wednesday, a 55% premium to the 60-day volume weighted average price and a whopping 143% premium to the 30-day volume weighted average price.