Oil Search Says Not To Submit Revised Offer For InterOil

(RTTNews) - Oil Search Limited (OSH.AX) has informed InterOil Corp. (IOC) that it does not intend to submit a revised offer for InterOil under the Arrangement Agreement between Oil Search and InterOil dated 20 May 2016. This follows notification on 18 July from InterOil that it had received a 'Superior Proposal' from Exxon Mobil Corp. (XOM)and that the InterOil Board intended to change its recommendation and enter into an Arrangement Agreement with ExxonMobil.

The Oil Search said it has decided that it is not in the best interests of shareholders to submit a revised offer for InterOil, following a detailed review of the ExxonMobil proposal, including an analysis of the recent Elk-Antelope resource certification, the value and opportunities offered by cooperation between Papua LNG and PNG LNG and the likelihood of realising this value by having ExxonMobil in the Papua LNG Joint Venture.

Oil Search's Managing Director, Peter Botten, said,"Given the decision by ExxonMobil to make an offer for InterOil on the terms it has announced, we do not believe it is in the best interests of our shareholders for Oil Search to submit a revised offer to acquire InterOil."

Botten said,"The bid by ExxonMobil clearly underscores the merits of our offer for InterOil and highlights both the qualityof our LNG assets in PNG and the potential value that would be created by cooperation between PNG's two world class LNG projects. Total SA and Oil Search have already signalled their desire to cooperate with thePNG LNG Project, to maximise synergy values for all stakeholders. Should ExxonMobil be successful in its proposed bid for InterOil, its entry into Papua LNG would significantly enhance the likelihood of material project cooperation."

In a separate press release, Oil Search reported that its Total production for the first half of 2016 was 14.9 mmboe, 4% higher than in the first half of 2015. Based on this strong performance, the company has upgraded its 2016 production guidance range, from 27.5 - 29.5 mmboe to 28 - 30 mmboe.

Total production in the second quarter of 2016 was 7.17 million barrels of oil equivalent or mmboe. This was 7% lower than in the first quarter.

Total revenue for the quarter was US$267.7 million, 15% lower than in the first quarter of 2016, taking total revenue for the first half of 2016 to US$580.8 million.