Bloomberg: Drillsearch Energy Looks at More Deals in Outback Australia

Drillsearch Energy Ltd., BG Group Plc’s exploration partner in central Australia, will study further acquisitions in the outback region after its proposed purchase of Ambassador Oil & Gas Ltd.

The company is looking at opportunities to add oil and gas acreage in the Cooper Basin through its “Project Uber,” Brad Lingo, managing director of Sydney-based Drillsearch, said today in a phone interview. Its Ambassador offer in May follows an acquisition of Acer Energy Ltd. in 2012.

“We have some of the best rocks, but others have great rocks too,” Lingo said after the company reported a 59 percent gain in full-year profit. “Whether it’s at the asset level or corporate level, we’re going to be optimizing our portfolio.”

Drillsearch is among companies in the Cooper Basin seeking to benefit from rising natural gas prices on Australia’s east coast. Drillsearch, which made a takeover offer for Ambassador valued in May at A$42 million ($39 million), has boosted its stake in the company to more than 60 percent, Lingo said today.

“We are approaching a key inflection point” in the Cooper with explorers over the next six to 18 months demonstrating how much oil and gas they can produce, he said. “The work program to date has been good in demonstrating the presence of the resource and the prevalence of the resource.” MORE