Oil Search to acquire interest in PRL 15 (Elk/Antelope), providing core strategic position in future LNG developments in PNG

abarrelfullabarrelfull wrote on 02 Mar 2014 14:25
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Oil Search has entered into an agreement to acquire the Pac LNG Group Companies (“Pac LNG”), which hold a 22.835% interest in Petroleum Retention Licence 15 (PRL 15), located in the eastern margin of the Papuan Basin in PNG. The present PRL 15 Joint Venture comprises InterOil Corporation (75.6114%), Pac LNG (22.8350%) and other interests (1.5536%).
Under the agreement, Oil Search will acquire the shares in Pac LNG for a consideration of:
  • US$900 million, payable at completion; and
  • Contingent payments of US$0.775/mcf for any certified 2C raw gas contingent resource within the Elk/Antelope fields greater than 7 tcf, applied to Oil Search’s gross share before Government back-in.

The acquisition of Pac LNG is unconditional and expected to settle within 2 weeks.
Oil Search has separately entered into a binding Heads of Agreement with the Pac LNG shareholders and other parties to undertake exclusive negotiations to acquire up to 100% of their interests in four permits.
These interests comprise 13.425% in exploration licences PPL 236 and PPL 238 and 11.0423% in PPL 237 and retention licence PRL 39 (which is expected to be granted soon), subject to the parties agreeing terms and satisfying any required third party approvals. PRL 39 contains the Triceratops gas discovery.
The exclusivity period extends for a period of six months. The acquisition price for such licences remains to be negotiated between the parties.

position in future LNG developments in PNG]


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