Eureka Energy Surges 45% on Takeover Bid by Aurora: Sydney Mover

Eureka Energy Ltd. (EKA), an Australian energy company with shale assets in Texas, surged as much as 45 percent in Sydney to the highest in more than five years, surpassing a takeover offer from Aurora Oil & Gas Ltd. (AUT)

The stock climbed to 48 Australian cents -- its highest since Dec. 21, 2006 -- and was up 41 percent at 46.50 cents at 11:21 a.m. local time. Aurora, an Australian rival focused on exploration in Texas, fell 0.5 percent to A$4.10 while the S&P/ASX 200 Index rose 0.6 percent.

Aurora offered 45 Australian cents a share in cash for the shares of Eureka it doesn’t already own, 36 percent more than its closing price of 33 cents on April 27, the Perth-based company said today in a statement. Aurora currently holds 2.79 percent of Eureka.

The A$104 million ($109 million) acquisition would give Aurora access to Eureka’s three assets with a combined 6,742 acres in the Eagle Ford shale region, including a 6.25 percent stake in the Sugarloaf project, according to Eureka’s website. Aurora, whose shares trade in Sydney and Toronto, has said it expects to more than double the number of wells it drills in the area this year.

Aurora’s shares have risen 21 percent this year, compared with a gain of 8.2 percent for the S&P/ASX 200 Index. Eureka has more than doubled this year.

Aurora expects to complete the offer by June 15, the company said.

To contact the reporter on this story: James Paton in Sydney at jpaton4@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net

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