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Beach Energy, Drillsearch Energy agree to merge

Pace of deals in oil & gas sector picks up as ready buyers eye assets

Published Fri, Oct 23, 2015 · 09:50 PM
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Melbourne

AUSTRALIAN oil and gas producers Beach Energy and Drillsearch Energy Ltd agreed to a billion dollar merger on Friday, the day after Santos rejected a US$5 billion offer, signalling that the industry's fortunes may be bottoming.

The pace of deals in the sector has picked up as a slump in oil prices since June last year has battered share prices to such weak levels that companies and assets are proving irresistible to buyers with sufficient funds.

"Here it's been a particularly painful year for (energy) equities, which has generated once-in-a-cycle-type opportunities for people with a more bullish long-term view on oil prices," said Adrian Prende…

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