Eureka Energy Limited (EKA) advises shareholders that it has received a non-binding and incomplete merger proposal from an unlisted US based company, Lonestar Resources, Inc, whereby Eureka would be the acquiring entity. Lonestar has stated that it believes its proposal to be an alternative to the current offer from Aurora Oil & Gas Limited (AUT).
The directors of the Company are undertaking a review of the Proposal and will provide an update to shareholders in due course.
Lonestar is a US based oil and gas company with a substantial US shale gas portfolio including 5,691 net acres in the Eagle Ford Shale, proximate to Eureka’s key assets. Given Lonestar’s significant experience in the Eagle Ford, Lonestar has a well developed understanding of Eureka’s key assets and their potential.
The terms of the proposal remain confidential and subject to approval by the Eureka Board of Directors. Lonestar expects discussions with Eureka to continue over this weekend with a view to a further update being announced by Tuesday next week (12 June 2012).
Unless and until a binding agreement is reached between the parties, there is no certainty that Lonestar’s proposal will result in a transaction proceeding.
Tags: Aurora Oil & Gas, EKA, Eureka Energy, Lonestar Resources, Merger proposal, Oil and Gas
