LONDON (ShareCast) - (Sharecast News) - Oil and gas explorer Deltic Energy has rejected a £12m takeover approach from Reabold Resources, it confirmed on Thursday.
The AIM-listed firm said the £12.34m offer unvalued the business by placing no value on its "significant" non-cash assets, including its share of two potential high impact exploration wells. The offer also did not reflect its existing cash balance, Deltic said.

In addition, there were no "strong rationale, commercial logic and sufficient operational synergies" to justify a merger, which also failed to reflect the commercial and technical risks associated with the Reabold portfolio", Deltic argued.

"After consideration of the proposed offer with its advisers, the board of Deltic Energy rejects the proposed offer," it confirmed.

Announcing the approach on Wednesday, Reabold - an Aim-listed investment firm that specialises in upstream oil and gas projects - said a tie-up would deliver "clear synergistic benefits and cost savings, which should potentially serve to accelerate the delivery of the enlarged group's strategy".

Deltic Energy, which changed its name from Cluff Natural Resources earlier this year, has a significant stake in a number of exploration licences in the North Sea.

As at 1145 BST, shares in Reabold were off 11% at 0.52p, while Deltic was ahead 4% at 0.84p.

Reabold was not immediately available for comment.

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