Oil Search yet to raise K2.34bil equity, says exec

By SHIRLEY MAULUDU
OIL Search says the company is yet to raise the full US$700 million (K2.34 billion) equity raising amount.
A company spokesperson told The National following reports that the petroleum company had closed the book on the US$700mil equity raising that it announced earlier this month.
“It is not correct to say we have closed the book on the full US$700mil,” a spokesperson said.
“We have completed the institutional component of the entitlement offer and the institutional placement raising US$650 million (K2.17bil).
“We have now launched the US$50 million (K167.6mil) retail component of the entitlement offer which closes in late April.”
Oil Search on April 7 announced an equity raising offer of US$700mil which is open to eligible PNG shareholders.
The company in a statement said proceeds of the equity raising would be used to strengthen Oil Search’s balance sheet and increase liquidity, so it could withstand period of low oil prices.
The equity raising would be conducted at an offer price of AU$2.10 (K4.27) per share which represented a 23.1 per cent discount to Oil Search’s last closing price.
Oil Search said it was well-positioned to deliver its world-class growth projects in PNG and Alaska when market conditions improved.
Managing director Keiran Wulff said: “In response to the recent rapid decline in oil prices, Oil Search has undertaken a number of decisive actions to preserve capital and strengthen the balance sheet, while also maintaining safe and reliable operations.
“Our capital preservation measures, together with the equity raising, are intended to ensure that Oil Search can withstand a prolonged period of lower oil prices.
“Oil Search believes it is well positioned to deliver on its world-class growth projects in PNG and Alaska when market conditions improve.
“The additional time will allow us to finalise the P’nyang gas agreement with the Government and optimise the Alaskan development.”