Beach Petroleum extends Drillsearch bid

Oil and gas company Beach Petroleum says it has extended its takeover offer for Drillsearch until August 14 and waived all conditions.

Beach Petroleum had previously given Drillsearch shareholders until July 16 to decide whether to accept a $50 million takeover offer, which was dependent on a 90 per cent acceptance.

Beach Petroleum managing director Reg Nelson said the condition that 90 per cent of shareholders had to agree had worked against the offer.

"Understandably Drillsearch shareholders might have said what's the point, because you are not likely to get to 90 per cent," Mr Nelson told AAP.

The original hostile offer was rejected by the Drillsearch board, which said the bid did not recognise the potential value of their company's reserves and resources.

"Certainly what we felt was a relatively friendly bid, with different factions on the board, we are now labelled as being opportunistic," Mr Nelson said.

He said the deal would allow give Beach Petroleum greater efficiency in exploring and developing assets in the Cooper Basin, particularly where the company was in joint venture with Drillsearch.

"We are not increasing the offer. We are extending the bid and waiving all the conditions," Mr Nelson said.

"In the absence of a superior share offer Drillsearch shareholders will be able to make a choice I guess," he said.

Beach's offer to Drillsearch shareholders was for one of its shares for every 27 Drillsearch shares, notionally valuing Drillsearch at about 2.93 cents per share.

This compares to Drillsearch's share price at 1457 AEST of 2.9 cents, which was unchanged on the day.

Beach launched its takeover bid in May, then valuing Drillsearch at $50 million.

Beach had a 5.3 per cent stake in Drillsearch at the time, which has since been lifted to 14.88 per cent.

The predator also said on Friday that it would offer brokers a handling fee of up to $750 if they initiate acceptances of the bid by Drillsearch shareholders and a binding takeover contract is formed.