Oil Search Makes US$400 Million Move into Alaska Oil Assets
October 31 2017 - 7:06PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Oil Search Ltd. (OSH.AU) has agreed to pay
US$400 million for a stake in the prospective Alaska North Slope,
estimated to be one of the largest conventional oil discoveries in
the U.S. in decades.
The oil assets will complement Oil Search's portfolio of
natural-gas assets in Papua New Guinea and balance a gas-dominated
portfolio, the company said Wednesday.
The acquisition in Alaska, along with exploration and
development costs, will be covered by existing cash and dedicated
additional financing facilities, Oil Search said.
The assets will be bought from closely held Armstrong Energy LLC
and GMT Exploration Company LLC, and include a 25.5% interest in
the Pikka unit and adjacent exploration acreage and a 37.5%
interest in the Horseshoe block. Oil Search has an option to buy
all of Armstrong's and GMT's remaining stakes in Pikka and the
Horseshoe area, plus interests in adjacent exploration acreage and
37.5% in the Hue Shale region, for US$450 million.
Oil Search said it will become operator of the assets from June
2018.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
October 31, 2017 18:51 ET (22:51 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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