The Boards of Cooper Energy Limited (COE) and Somerton Energy Limited (SNE) advise that they have agreed to merge via Cooper making a recommended off-market takeover bid (“Offer”) for all of the shares in Somerton. Cooper will offer all Somerton shareholders the choice of either: one Cooper Share for every 2.8 Somerton Shares; or one Cooper Share for every 4.73 Somerton Shares plus 9 cents for each Somerton share. The boards of both Cooper and Somerton believe there is a compelling strategic rationale for the merger. Combining the complementary assets and technical expertise of both companies together with Cooper’s strong cash balance and cash flow creates a focused oil and gas production and exploration company.
Cooper Managing Director Mr David Maxwell said: “Somerton’s assets are a complementary fit in line with Cooper’s strategy and the merger will significantly enhance our position in the Otway Basin. The merged company will be in a very strong financial position to pursue organic growth opportunities and corporate activity to further add value and enhance shareholder return. The proposed merger provides the opportunity for Somerton shareholders to also participate in this growth.”
Since listing on the ASX in 2002, Cooper has built a portfolio of near term low risk development and appraisal projects as well as high impact exploration prospects. Cooper currently benefits from approximately 1,700 barrels of oil per day net production from the Cooper Basin, South Australia, with approximately 150 barrels of oil per day gross production from its Sukananti field in Indonesia. Somerton Energy Limited is a petroleum exploration company, listed on the ASX and based in Adelaide, South Australia. Somerton’s strategic focus is on unconventional oil and gas plays and other high impact petroleum projects, primarily in the onshore Otway and Gippsland Basins of Victoria and South Australia, where it holds interests in seven petroleum tenements.