L&M Energy chairman and creditor Geoff Loudon has drawn more than 80 percent acceptances for his takeover offer.
Loudon's New Dawn Energy has acceptance for 80.4 percent of L&M, according to a substantial shareholder notice yesterday. It needs to get to 90 percent to declare the offer unconditional.
The company made its offer in October at 6 Australian cents a share, valuing the target at $A45.3 million, winning the support of L&M's independent directors.
An independent valuation by KordaMentha put the value at between zero and 5.1 Australian cents. New Dawn has offered between 0.004 Australian cents and 5.99 cents for L&M's options.
L&M's dual-listed shares last traded at 5.8 Australian cents and have declined 11 percent this year.
The company holds coal seam gas exploration permits in the South Island, petroleum exploration permits in the Taranaki basin, coal prospecting permits in the North Island and shale gas exploration permits in Southland.
Independent director Trevor Taylor had said there was a relatively low prospect of L&M receiving a superior offer, while noting that the company probably needed to raise more capital next year.
In June, Mr Loudon provided a $5 million bridging loan for the company.
The offer closes on January 11. L&M first listed in January 2007.