June 27, 2019 / 11:49 PM / 2 months ago

Australia's Oil Search increases stake in Alaskan assets

(Reuters) - Australia’s Oil Search Ltd on Friday exercised its option to double its stake in several Alaskan assets for $450 million.

The company said it has elected to exercise an option to pick up stakes from privately owned U.S. firms Armstrong Energy and GMT Exploration in the Pikka Unit, Horseshoe block and other exploration areas, following an initial deal in 2017.

The option will be funded through its existing corporate debt facilities, while an additional $300 million of credit lines is being arranged to provide the firm with further financial flexibility.

Oil Search said the Pikka Unit Nanushuk development, which is co-owned by Spain’s Repsol SA, is targeting first production in 2022 through a 30,000 barrels of oil per day early production system.

Reporting by Niyati Shetty in Bengaluru; editing by Richard Pullin

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