The new company would have strong management, significant growth potential and a capacity to achieve its goals, Drillsearch said.
The merger brings the new company a market capitalisation of about $75 million, a net interest in more than 165,000 barrels of oil production in 2008, five discoveries awaiting commercialisation, and exploration acreage in seven highly prospective basins.
Drillsearch executive chairman Peter Simpson will remain as chairman of Drillsearch but in a non-executive capacity and said the merged company would benefit from its enhanced market position.
"Management and staff from both companies will combine to form an experienced, fully resourced oil and gas team with exploration, development, production and operator capability," he said.
"The Tintaburra and Naccowlah production assets will be balanced with a complementary set of highly prospective exploration and development assets including; the Great Artesian Cooper Basin gas commercialisation project, the Marina 2 prospect in the Bonaparte Basin offshore WA; and and the synergistic Cooper-Eromanga and Surat Basin exploration permits held by each of the merging companies."
Recently appointed managing director of Great Artesian David Williams would be appointed as managing director of the merged entity and said he is excited by the team that will come together as part of the merger.
"This provides us with a very capable and focused team with a wealth of experience across the combined business," he said.
"There is a real enthusiasm from everyone for the merger and an atmosphere that we can build on effectively."
The merger will be implemented by way of a Scheme of Agreement and is expected to be approved in a Great Artesian shareholder meeting in early July.
Following the amalgamation, the company may be renamed to reflect its new business plan and ambitions, Drillsearch said.
Both companies have emerged from trading halts, which took effect on Wednesday, after announcing their merger.
However, Drillsearch may have been tardy in its application for a trading halt as prices in the company soared 41.3% in the early part of the week to 6.5c.
