ExxonMobil completes InterOil acquisition

InterOil, a company with assets in Papua New Guinea, informed that the previously announced transaction with U.S. oil major Exxon Mobil has been completed.

The company said on Wednesday that, under the terms of the transaction, ExxonMobil acquired all of the outstanding common shares of InterOil.

InterOil shareholders received 0.5459 shares of ExxonMobil for each InterOil common share as well as a contingent resource payment.

A contingent resource payment (CRP) entails an additional cash payment of $7.07 per share for each trillion cubic feet equivalent (tcfe) gross resource certification of the Elk-Antelope field above 6.2 tcfe, up to a maximum of 11 tcfe.

ExxonMobil made an initial offer to buy InterOil in July 2016 by toppling a takeover attempt by Oil Search with a ‘superior’ $2.5 billion offer.

Several days later InterOil accepted the offer made by the U.S. giant. The offer meant that shareholders would receive payment of $45.00 per share of InterOil, paid in ExxonMobil shares, at closing.

The number of ExxonMobil shares paid per share of InterOil would be calculated based on the average price of Exxon’s shares over a period of ten days ending shortly before the closing date. Apart from ExxonMobil shares, InterOil shareholders are entitled to earnings from CRP.

In December 2016, the CRP which was capped at 10 tcfe was increased to 11 tcfe, representing an increase in total potential consideration to approximately $78.94 per InterOil share from $71.87 per share.

The CRP part of the deal has been deposited into escrow on closing and will be subsequently released, with applicable adjustments, following certification of the Elk-Antelope resources.

The contingent resources to be paid include the Antelope-7 well and will be revised and certified once the drilling of the well is completed.

With the completion of the transaction, the common shares of InterOil will be de-listed from the New York Stock Exchange.

Share this article

Follow Offshore Energy Today

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Executive Oil Conference & Expo 2019

Executive Oil Conference and Exhibition is a unique opportunity to meet with all of the region’s…

read more >

Oil & Gas Vietnam 2019

Oil & Gas Vietnam (OGAV) 2019 is the only specialized oil & gas event in Vietnam that brings together an international congregation of both upstream and downstream oil and gas companies and also its supporting industries gathered in the heart of Vietnam’s oil and gas industry in Vung Tau, to showcase the latest developments in the oil and gas industry.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply