PNG purchase: Government buys into Oz-listed company
Oil Search buys into PNG block
27 February 2014 06:09 GMT
Oil Search readies for PNG LNG
27 February 2014 06:05 GMT
Oil Search in the hunt
28 February 2014 12:00 GMT
28 February 2014 04:25 GMT
The government has subscribed for 149.39 million shares in Oil Search at a price of A$8.20 (US$7.30) per share.
The share purchase agreement is subject to the execution of final financing documentation with UBS AG Australia and final state approvals which is expected for 6 March.
Settlement of the subscription is expected to happen by mid-March.
The subscription comes a day after Oil Search revealed it was taking a 22.83% interest in PRL 15, which contains the Elk/Antelope discoveries for US$900 million.
The company bought into the Interoil-operated project through a purchase of Pac LNG which has a 22.8% stake in the project.
The deal is unconditional and is expected to close within two weeks.
Oil Search also entered into a binding heads of agreement with Pac LNG shareholders and other parties to undertake exclusive negotiations to purchase up to 100% interest in four other permits.
This is made up of a 13.4% interest in PPL 236 and PPL 238 and 11.04% interest in PPL 327 and PRL 39.
The exclusivity period will last for six months with the price to be negotiated in that time.
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