Dart Energy targets Apollo Gas

Junior oil and gas explorer Apollo Gas has agreed to a $145 million takeover offer by coal seam gas project developer and Arrow Energy-spin off Dart Energy.

Dart said in a statement that Apollo's independent directors had unanimously recommended the proposal in the absence of a better offer.

The all-scrip deal comprises three Dart shares for every four Apollo shares held and three comparable Dart options for every four Apollo options held.

Dart said this gave the target a total implied consideration value of 79 cents per share.

Former Hardman Resources chief Simon Potter joined Arrow Energy in February to run its international arm and steer its partial float later this year.

Apollo Gas chairman Peter Hood is the former chief executive officer of Coogee Chemicals and then Coogee Resources as an oil and gas operator.