At an extraordinary general meeting this morning, AEL shareholders overwhelmingly agreed to use the company's 53.1% stake in Anzon to vote in favour of the proposed $1.1 billion merger next week, in the absence of a superior proposal.

Anzon told the market that about 60% of AEL shareholders voted at today's meeting, with 99.9% of those votes being cast in favour of the arrangement.

In one week's time, Anzon's shareholders will meet in Sydney to decide whether or not the merger will proceed.

The heads of both Arc and Anzon welcomed AEL's decision.

"The support confirms the tremendous opportunity that a merger between Arc and Anzon Australia will create [by] combining high quality, diverse assets to build a company with low risk, long-run production, significant near-term appraisal potential and high-upside exploration, Arc managing director Eric Streitberg said.

"With a much greater market capitalisation and significantly greater market liquidity, the combined entity may also benefit from a re-rating on the share market and possible inclusion in the S&P/ASX200 index."

Anzon Australia chairman Steven Koroknay said the merger represented a unique opportunity for shareholders of his company.

"This merger will create one of Australia's leading independent oil and gas companies and is an exciting opportunity for all Anzon Australia shareholders to become involved in a more diverse company with high quality, low risk, currently producing, assets both onshore and offshore," he said.

However, there is still a chance that Nexus Energy will yet stymie the wedding by outbidding Arc or by making a bid for the merged entity.

While Nexus failed to Anzon's shortlist of approved bidders, it has not yet indicated that it has given up the fight.

Nexus already has a 19.2% stake in Anzon and last week completed a $110 million bonds and warrants issue announced in December. Like most companies, its share price has suffered in recent weeks, but good results from appraisal work at its Crux field have minimised the damage, and Nexus' market capitalisation is now almost as much as Anzon's and Arc's put together.

Arc is offering 1.175 shares for each Anzon share.

On Tuesday January 29, Anzon shareholders will vote on the Arc bid. Much will depend on how Arc and Nexus fare in comparison to each other over the next week.