Exxon Mobil Offers "Superior Proposal" For InterOil

(RTTNews) - InterOil Corp's (IOC) announced that its board in consultation with its legal and financial advisors has determined that the ExxonMobil Corp (XOM) Offer constitutes a "Superior Proposal," with Oil Search Limited (OSH.AX) and InterOil has provided notice of such determination to Oil Search.

Under terms of ExxonMobil Offer, InterOil shareholders would receive a payment of $45.00 per share of InterOil, paid in ExxonMobil shares. Oil Search offered an additional $6.05 per share for every trillion cubic feet of likely reserves above 6.2 trillion found in InterOil's Elk-Antelope fields. Exxon is offering $7.07 per share for each trillion cubic feet above 6.2 trillion, up to a maximum of 10 tcfe. Exxon's contingent resource offer is equal to 90 cents per thousand cubic feet of gas equivalent, Oil Search said.

Under terms of the Oil Search Agreement, Oil Search has a period of three calendar days, which will expire on July 21, 2016, during which it can offer to amend the terms of the Oil Search Agreement. The InterOil Board of Directors continues to recommend the Oil Search transaction to its shareholders.

InterOil notes that there can be no assurance that the ExxonMobil Offer will lead to the termination of the Oil Search Agreement and the execution of an arrangement agreement with ExxonMobil, or that the transaction contemplated by the ExxonMobil Offer will be approved by shareholders or consummated.