The presentation to investors follows yesterday morning’s announcement that both Nexus and Anzon had agreed to a friendly merger, based on an offer of $1.75 per AZA share – a 29% premium to its last closing price.
In addition, Nexus’ offer, which values Anzon at $648 million, is 36% higher than Arc Energy’s earlier offer of $1.175 per share.
The merger would combine Anzon’s immediate production from the Basker-Manta assets with Nexus’ emerging production profile and reserves base in the Longtom and Crux fields.
Nexus claimed that combining the two businesses could save up to $100 million in operational costs, including using Longtom infrastructure to process natural gas from Basker-Manta-Gummy (BMG) field when it comes online in 2011.
According to Nexus, this would accelerate BMG production, lower processing costs, and lower operating costs.
Nexus also suggested that it may look overseas for further growth, saying its “commercially and technically capable team [is] ready to progress outside Australia”.
At home, the company said it would have significant acreage positions in the Gippsland, Browse, Bonaparte, Perth and Canterbury basins.
“A merger reduces the commercial risk in the event of successful exploration of prospects around BMG,” Nexus said.
The transaction would also provide the company with greater access to offshore skills, experience and relationships, the company said.
The new company would have a $1.5 billion market capitalisation and hold 169 million barrels of oil equivalent at the 2P (proved plus probable) level of confidence.
This would make it the fifth biggest oil and gas company on the Australian Securities Exchange – behind BHP Petroleum, Woodside, Santos and Oil Search – holding the third-largest 2P reserves.
Anzon’s parent company and 53.1% stakeholder Anzon Energy Ltd (AEL) has also withdrawn its support for the Arc proposal, directing it instead to the one with Nexus.
In the short term, the merged entity's net oil production is forecast to rise from 4600 barrels of oil per day from the Basker Manta oil project this year to 16,900 barrels of oil equivalent per day once the Longtom gas project enters production in 2009.
Production is expected to rise further to 57,000boepd in 2011 once the Crux liquids project and the Basker Manta Gummy gas project come online.
