Beach’s $1.17-bln acquisition

Australia

SYDNEY, October 23, 2015 – Beach Energy will acquire Australian company Drillsearch Energy for $1.17-billion, the companies announced in a joint statement on Friday.

Beach Energy expects $14.4 million in savings each year as a result of the acquisition, as it and Drillsearch Energy partner in two joint ventures in Australia’s Cooper Basin.

The companies will have a market capitalisation of $844 million and combined production of 12.1 million barrels of oil equivalent.

“The proposed merger will provide both Beach and Drillsearch shareholders exposure to a more efficient, cost effective and diverse Cooper basin business with larger production and reserves, delivering real benefits to all shareholders,” Beach Energy chairman Glenn Davis said Friday.

Both companies posted a net loss for the year ending in June. Beach saw net losses of $370.8 million, compared with profits of $73.4 million the previous year. Drillsearch recorded a $58.5-million net loss after a profit of $41.8 million in the same period of 2014.

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