From the PNG Industry News web site . " Investors catch on to Oil Search "
This is part of Friday /Saturdays news Interesting reading re price target and timeline
?Oil Search shares were trading at $8.02 by 12.38pm, up 4.2%. If they surpass $8.55 by early 2014 the PNG government will not have to pay any additional money to the Abu Dhabi government-owned International Petroleum Investment Corporation (IPIC).??In 2008 the government agreed to exchange its 17.756% shareholding of Oil Search to IPIC in exchange for about $US1.68 billion upfront. ??Under this deal the government agreed to pay for any shortfall in the agreed share value of $8.55 each by early 2014. ??The transaction provided the government with a large amount of the money required to fund its 19.4% share of PNG LNG project development costs, and came during a difficult lending climate. ??The other significance of a strong price in Oil Search shares is to help defend this PNG stalwart from possible takeover attempts, which could emerge after the IPIC transaction is completed in early 2014.
