Rick Wilkinson
OGJ Correspondent
MELBOURNE, Apr. 29 -- Perth-based Arc Energy Ltd. is to merge with Australian Worldwide Exploration, Sydney, to form an entity with a market capitalization exceeding $2 billion (Aus). The new company will have a portfolio of interests on and offshore holding proved and probable reserves of more than 78 million boe.
There also will be the creation, via a demerger, of a new ASX-listed exploration company called Buru Energy Ltd. that will hold Arc's Canning basin onshore exploration and production assets in Western Australia. AWE will hold 15% of Buru through Arc.
The merger is subject to approval by Arc shareholders and various Court approvals.
The combined portfolio will contain AWE's share of the Tui oil field off New Zealand, the Yolla field in the Bass basin of Tasmania, and the Casino gas field in the Otway basin off western Victoria as well as Arc's onshore Perth basin oil and gas fields. Both companies already had interests in the offshore Perth Basin Cliff Head oil field.
AWE's managing director Bruce Wood will remain in that position within the merged entity while Arc's managing director Eric Streitberg will be invited to join the AWE board as a nonexecutive director. Streitberg also will become chairman of the new Buru Energy.
The timetable for the transaction began with the signing of the merger implementation agreement on Apr. 24 and will lead through various court hearings and approvals to a final implementation date scheduled for mid-August.
