Drillsearch Energy makes its move on 3D Oil

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Jan. 21 -- A "battle of the minnows" is shaping up as Sydney-based Drillsearch Energy Ltd. has made an all-share, off-market takeover bid for Melbourne junior 3D Oil Ltd. Drillsearch is offering four of its shares for each share of 3D Oil.

3D Oil immediately responded by telling shareholders to reject the offer, which it said does not reflect the company's true value.

3D Oil has a strong asset in yet-to-be developed West Seahorse oil field in the Bass Strait as well as cash reserves of about $12 million (Aus.).

Drillsearch has an extensive portfolio of exploration and production assets in Australia, Papua New Guinea, and Canada. Key production comes from the Surat and Cooper basins, and it has yet-to-be developed fields in the offshore Bonaparte basin off northern Australia. The company moved to a 19.9% holding in 3D Oil prior to the takeover announcement.