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SYDNEY, Sept 6 (Reuters) Australian oil and gas producer Beach Petroleum said it has bought Delhi Petroleum, paying A$574 million ($442 million) to top a bid from Santos Ltd. and boost its reserves in the onshore Cooper Basin.

Beach shares rose 6 percent in late morning trade to A$1.62, in a flat overall market.

Beach said the deal would give it an average 21 percent stake in more than 200 oil and gas fields in the Cooper Basin in central Australia, and take its oil and gas reserves to more than 95 million barrels of oil equivalent (boe) from 36 million boe.

''The acquisition complements Beach Petroleum's existing Cooper Basin oil and gas reserves and provides significant opportunities and synergies to add value through exploration and production,'' the company said in a statement.

Santos Ltd. had said in July it would buy Delhi from Westpac Banking Corp. for A$474 million to boost its stake in the Cooper Basin to 85 percent from 63 percent.

Westpac acquired Delhi earlier this year when it bought Australian Petroleum Investments (API) from founders David Libling and Graeme Foley.

API acquired Delhi in March 2004 for A$635 million, funded by Westpac, which listed A$300 million in floating interest energy-linked securities (FIELDS) to offset funding risk.

Beach said it would pay A$44 million for the issued capital of API and assume about A$230 million in debt. It would also redeem some or all of the FIELDS in full, which Westpac said would cost A$300 million, taking the total to A$574 million.

Beach said it would fund the acquisition through a A$650 million bridging debt facility, which would be paid down from a planned A$360 million in fully underwritten equity issue.

A A$113 million placement at A$139 a share would be underwritten by Euroz Securities, while a two-for-seven renounceable rights issue at A$1.39 a share would raise about A$247 million, it said.

Euroz and Commonwealth Securities would act as joint lead managers and underwriters of the rights issue.

REUTERS DH PM0751