30/04/2012 - 10:50

Aurora makes $107m offer for Eureka

30/04/2012 - 10:50

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Perth based oil and gas junior Aurora Oil and Gas has announced a $107 million, unconditional on-market cash takeover bid for Eureka Energy.

Aurora announced today it had offered 45 cents for each Eureka share, a 36.4 per cent premium to its last traded price of 33 cents.

Eureka, which owns substaintial acreage within the highly prospective Eagle Ford shale gas region in Texas, advised its shareholders to take no action until its directors have had the opportunity to analyse the bid.

“Our offer provides an opportunity for Eureka shareholders to crystallise immediate and certain value for their shares,” Aurora chief executive Jon Stewart said.

“For Aurora, the transaction builds the company’s already strong presence in the Sugarkane field, growing its portfolio of Eagle Ford interests in line with Aurora’s stated strategy.”

The offer has been brokered by Euroz Securities.

At 10:40AM, WST, Aurora stocks were steady at $4.12.

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