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Sundance Energy & Texon to merge

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SYDNEY, Nov 13 AAP

November 13 2012, 7:21PM

United States-focused energy explorer Sundance Energy Australia has agreed to merge with Texas-focused fellow Australian listed explorer Texon Petroleum.

The all-scrip deal will result in the existing Sundance board remaining but all Texon directors resigning, with the newly merged entity increasing its scale of operations and market capitalisation.

One Sundance share will be issued for every two Texon shares,

Texon, which is an oil and gas explorer and producer, has operations in south Texas, where the Eagle Ford shale assets are also located, and elsewhere in the state.

Texon shareholders will retain all non Eagle Ford Shale assets in new listed vehicle called Talon Petroleum.

The Texon board said it unanimously recommended the proposal to merge.

The merger proposal is via a scheme of arrangement and subject to shareholder and court approval.