STOSF - Australian energy producers Santos Oil Search set to merge

Oil Search (OTCPK:OISHF) says it agrees to an improved takeover offer from Santos (OTCPK:STOSF) that would create one of the world's 20 largest oil and gas companies, with a market value of more than A$22B (US$16B). Oil Search is Papua New Guinea's largest oil producer and owns a minority stake in the Exxon-operated PNG LNG gas-export project in the country, which also includes Santos as an investor; Oil Search also owns undeveloped oil reserves in Alaska that it hopes to develop if it can bring in another investor. Santos' gas portfolio in Australia includes the Gladstone LNG export facility in Queensland and the Darwin LNG plant in the Northern Territory. Santos is offering 0.6275 of its own shares in exchange for each Oil Search share, less than two weeks after Oil Search rejected an earlier proposal for 0.589.

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Australian energy producers Santos, Oil Search set to merge