McFarland and Petrominerals agreed to merge.

The two California-based independent oil producers said their boards approved a definitive agreement for Petrominerals to be merged into McFarland Energy. An earlier plan to merge, through an exchange of one share of McFarland common stock for every seven shares of Petrominerals common, fell through last September. The new deal will exchange one share of McFarland stock, which closed Wednesday at $14 on the over-the-counter market, for 5.4 shares of Petrominerals. Petrominerals closed at $2.25 a share. Petrominerals shareholders will own about 25% of the shares of the combined company.