Shale Daily / NGI All News Access

Industry Brief

Management of Australia's Eureka Energy Ltd., which has acreage in the Eagle Ford Shale of South Texas, told shareholders they should reject an unsolicited offer from Aurora Oil and Gas Ltd., also of Australia and an Eagle Ford player. "The board considers the offer to be opportunistic and designed to solicit shareholders to sell their shares at a time when the company's strategic direction and underlying potential is still emerging," said Eureka Acting Managing Director Bill Bloking. Aurora has made an A$107 (US$111.7 million) unsolicited offer for Eureka. Aurora said the unconditional, all-cash offer represents "an attractive premium" (36.4% to Eureka's previous closing price) and gives Eureka shareholders the opportunity to "crystallize immediate and certain value for their shares." The acquisition would build Aurora's "already strong presence in the Sugarkane Field, growing its portfolio of Eagle Ford interests" in line with its strategy, said Aurora CEO Jon Stewart (see Shale Daily, May 1).

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