A Review of the Nigerian Energy Industry

Drillsearch extends offer period

Oil production platform and supoort ships Alaska16 July 2014, News Wires – Ambassador shareholders have been given a little bit longer to take action on the takeover offer from Australia-listed Drillsearch Energy.

Given the number of setbacks faced by the duo in this takeover effort, the offer period has been extended to 28 July.

The off-market takeover bid by Drillsearch has been somewhat delayed by a similar takeover bid from US player Hunter Resources.

This extension has happened twice before and as the company said, can happen again.

Ambassador has been weighing up both offers for quite some time, telling shareholders that both offers provided a premium on the company’s last share price.

The Drillsearch Energy offer has a 68.57% to the closing price of shares 23 May 2014, the last day of trading before the company was placed in a halt.

Magnum Hunter Resources’ offer has a premium of 91.55% on that same closing price.

Ambassador then put the ball in the court of the shareholders comparing the benefits of both offers.

“[Shareholders should accept the offer if] you wish to retain and increase your exposure to the Cooper basin with an investment in Drillsearch, consistent with your initial investment in Ambassador and the risk profile of holding Drillsearch shares is acceptable to you,” the company said.

Shareholders were encouraged to take the Magnum offer if they preferred to have exposure to the New York Stock Exchange and want a higher implied premium for shares.

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