Under the merger agreement, the Melbourne-based company today said it would buy all issued capital of Facilitate Digital in exchange for the issue of Purus shares to Facilitate shareholders.

Purus said it was “most impressed” with Facilitate’s combination of attributes and the potential for “enhanced shareholder value,” including its software, which enhances, tracks and optimises all forms of digital marketing.

The company said it planned to change its name to Facilitate Digital Holdings if the merger goes ahead.

Purus has not had the best of luck since listing on the Australian Stock Exchange in September 2005.

The company had been drilling near Casterton in the Otway Basin, southwest Victoria and was prospecting in areas that already had extensive gas pipeline networks.

Purus identified Gordon and Hawkesdale as having possible gas reserves and initially concentrated on drilling near these two townships.

The company has said that logging from previous oil and gas operations has shown the Otway Basin's coals contain methane. But because the gas is low-rank, commerciality depended on how permeable these coals were.

Unfortunately, initial results didn't meet expectations.

Purus said the merger with Facilitate will be conditional on satisfactory due diligence and shareholder approval.

The merger is expected to be completed by March 23 following a general meeting on March 19.