Australian oil explorer Senex Energy Ltd has made a preliminary offer to purchase AWE Ltd, according to two people familiar with the situation. The said unnamed sources were cited in a report published by Bloomberg Businessweek.
Today, AWE received a non-binding merger bid from an entity it did not disclose. The company's shares were halted from trading after receiving the said proposal, the report said.
The acquisition of AWE would reportedly give Brisbane-based Senex a stake in shale gas projects in Western Australia's Perth Basin. The transaction would also grant the firm access to an Indonesian oil project. Senex focuses on oil and gas explorations in central Australia's Cooper Basin. Another focus of the latter's is coal-bed methane on the country's east coast, the report detailed.
Talks between the two oil firms were reported earlier today by the Australian Financial Review. Citing unnamed sources, the paper said Senex is seeking a merger deal with AWE, wrote Bloomberg Businessweek.
AWE's shares have slumped 2.5% this year. The company presently has a market value of A$619 million ($552 million), the report stated.
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