Boston, MA 06/11/2014 (wallstreetpr) – Cooper Basin gas assets are becoming the core target of many of a gas exploration companies. Magnum Hunter Resources Corp (NYSE:MHR) has made a takeover bid of $48 million for Ambassador Oil and Gas in Cooper Basin. The other company who is interested in Ambassador Oil is Drillsearch Energy Limited. Magnum made an offer of one MHR common stock for every 27.8 shares of Ambassador Oil. It is a much better bid offer as compared to the Drillsearch offer. Magnum already has its operations in Cooper Basin. It bought a stake in New Standard Energy which has got its operations in the Eagle Ford shale in Texas.
The Interest In Cooper Basin
Magnum Hunter Resources Corp (NYSE:MHR) wants to extend its operations in Cooper Basin. It was interested to buy a stake in Ambassador from the time it got a stake in New Standard. Obviously, the company wants to take the benefit of Ambassador’s strong hold in the US shale. The past has proved that the probability of higher success increases when the companies gets an early exposure to the shale plays. Therefore, the company doesn’t want to miss the opportunity to acquire Ambassador Oil.
The Opportunity Ahead
As of now, the battle to acquire the Ambassador Oil seems to intensify in the coming days. Magnum Hunter Resources Corp (NYSE:MHR) and the Drillsearch both the companies are looking to seize the opportunities offered by Ambassador Oil. Magnum is even in talks with the board of Ambassador to get the upper hand on the deal. The talks are in the initial stages with the board and the majority shareholders. The board and the shareholders are expected to turn positive on the deal as they were even happy with the bid offer of Drillsearch. The superior offer increases the chances of Magnum Hunter Resources Corp (NYSE:MHR) to crack a deal. If it happens, it can have a strong foothold in the US operations.
