Oil Search to raise $1.1B to buy Papua New Guinea gas assets

|About: Oil Search Ltd. (OISHF)|By:, SA News Editor

Oil Search (OISHF, OISHY) says it will sell A$1.2B (US$1.09B) in shares to fund a purchase of stakes in two large natural gas discoveries in Papua New Guinea.

Oil Search says it will use the funds to buy a 22.8% stake in a license that includes the Elk and Antelope gas fields from closely held Pac LNG Group for US$900M; the fields are being developed by Total (TOT) and InterOil (IOC).

Oil Search will issue 149.4M new shares at A$8.20 each to the government of Papua New Guinea to fund its entry into the Elk and Antelope developments.

The deal brings Oil Search inside both major energy joint ventures in the country, led by Exxon Mobil's (XOM) $19B PNG LNG project, where Oil Search owns a 29% stake.