This will result in Oil Search retaining 51% in the Pikka Unit and the Horseshoe Block, while purchasing a 51% interest in the leases Repsol acquired in 2017, which are located immediately east of the Horseshoe area within the prospective Nanushuk trend. Oil Search and Repsol have entered into arrangements to align ownership interests across their shared Alaskan assets.The timing of the sell-down will allow the results of the 2019/20 drilling programme and development plans to be incorporated, thereby maximising the value of the divestment. The Company intends to undertake a formal divestment process for the sale of part of its Alaskan portfolio, to conclude prior to the Final Investment Decision (FID) for the first phase of the Pikka Unit Nanushuk development, scheduled for mid-2020.These credit lines have a term of one year, to cover the maximum period anticipated until the planned sell-down of a portion of the Company’s Alaska interests is executed. To provide additional financial flexibility, US$300 million of additional bank credit lines will be finalised shortly. The Option exercise will be funded from existing corporate facilities.Material value has been added to these assets through successful drilling and testing over that time and attractive development options have been matured. This follows a comprehensive review of data acquired over the last 18 months since the Company made the original acquisition. Oil Search has elected to exercise the Armstrong / GMT Option for US$450 million, which doubles the Company’s interests in the Pikka Unit, Horseshoe Block and other exploration leases.
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