Worldwide

Oil Search to acquire oil assets in Alaska North Slope for $400m

Oil Search to acquire oil assets in Alaska North Slope for $400m”

Oil Search has secured an agreement with to acquire oil assets in Alaska from privately-owned companies, Armstrong Energy and GMT Exploration, for $US400 million ($522.4 million).

The assets include a 25.5 per cent interest in the Pikka Unit and adjacent exploration acreage and a 37.5 per cent interest in the Horseshoe Block, the locations of which are illustrated below. Repsol S.A., which holds the balance of the interests in the Pikka Unit, exploration acreage and Horseshoe leases, now estimates the discovered resource to be up to 1.2 billion barrels. Armstrong is also in the midst of the environmental impact statement process to develop the Nanushuk field, which could produce up to 120,000 barrels of oil per day. The company also has until June 30, 2019, to buy the rest of Armstrong's and GMT's interests in the prospects for another $450 million.

Currently, Repsol holds a 49 percent share of the Pikka Unit, while Armstong has 38.25 percent and GMT Exploration the remaining 12.75 percent interest, according to the Division of Oil and Gas.

In what was described as its most groundbreaking acquisition, Australian energy company Oil Search Ltd. said it was taking a big step into Alaskan oil.

Oil Search will fund the acquisition from its existing cash, with current liquidity at about $2 billion, comprising $1.2 billion cash and $850 million of undrawn corporate facilities, and the company says it still has " more than enough" financial capacity to fund both the PNG LNG expansion and the Nanushuk development, all while maintaining its dividend policy.

The company said Wednesday it took on oil assets that Botten said were "particularly attractive" for $400 million in a buy that gives Oil Search a way to balance its core portfolio in Papua New Guinea.

Oil Search stressed, however, that its push into Alaska was about diversification and not a move away from Papua New Guinea.

The company already employs Halliburton's services at its Papua New Guinean assets.

It expects first oil to flow from the Pikka Unit in 2023.



Like this

Latest


01 November 2017
Judge orders man to write 144 nice things about his ex-girlfriend
In court, Young said he was sorry. "I hope she changed her number", the Circuit Court for the Second Circuit judge added. That means that as part of Young's sentence, he has to write 144 positive things about the woman in 144 days.

01 November 2017
Banco Bilbao Viscaya Argentaria SA (NYSE:BBVA) Quarterly Analytical Analysis
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) has an annual dividend of $0.42, while its annual dividend yield is 5.05%. Let's have a look at some of the important valuation ratios of the Banco Bilbao Viscaya Argentaria S.A. (BBVA).

01 November 2017
Affinity Investment Advisors, LLC Decreases Its Position in Exxon Mobil Corporation (XOM)
It worsened, as 48 investors sold XOM shares while 822 reduced holdings. 103 funds opened positions while 639 raised stakes. Following the completion of the sale, the director now owns 43,125 shares of the company's stock, valued at $3,459,918.75.

01 November 2017
'The Walking Dead': A Season 1 Character Makes a Shocking Return
Rick looked at a photo on the wall, and made the realization that he knew its subjects: the Morales family. Clearly, plans changed, as Morales (first name unknown) is now part of Negan's group.

01 November 2017
Max Evans is Dancing On Ice's fifth celebrity skater
Max revealed: "I haven't done any skating since I was a kid, and this is completely different having to skate on live television". Previous hosts Phillip Schofield and Holly Willoughby will return to front the series, due to air in early 2018.

01 November 2017
Arsene Wenger backs rejuvenated Mathieu Debuchy as Arsenal centre-back
Arsenal manager Arsene Wenger has confirmed that Mathieu Debuchy is back in his plans, as reported by the Evening Standard . The boss added: "We are all very pleased for him here because he has gone through some very hard moments with setbacks".

01 November 2017
September unemployment drops for Jefferson and Lewis counties from a year ago
Lancaster County's unemployment rate fell to 3.8 percent in September, the state Department of Labor & Industry said Tuesday. It was up 24,400 jobs from 1,230,200 to 1,254,600, or a full two percentage point increase over the prior 12 months.

01 November 2017
StanChart Reports Third-Quarter Profit Rises 78 Percent
The bank said the global economy is recovering, albeit at a slow pace, but warned that strong competition was keeping asset margins "under pressure".

15 September 2017
ShangriLa is online casino with guarantee of won money pay outs
Shangri La proposes games for any taste A large selection of slot games allows anyone to choose a game for any discerning taste. This is the best place to spend your free time with pleasure, stress relief, relax and forget about the daily problems.

13 September 2017
Top Bookmakers Name Odds-On Favourites for 2017-2018 NBA Championship Success
As a result, the Warriors won the championship for a fifth time, taking back the title that they last won as recently as 2015. The two teams have met in the final for three consecutive years, with the Cavs picking up the title just once, in 2016.



Recommended