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ExxonMobil to acquire InterOil in deal worth more than $2.5 billion

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Staff Writer | July 21, 2016
Exxon Mobil Corporation will acquire all of the outstanding shares of InterOil Corporation.
Exxon InterOil
Acquisition   A payment of $45.00 per share of InterOil
Under the terms of the agreement with ExxonMobil, InterOil shareholders will receive:

- A payment of $45.00 per share of InterOil, paid in ExxonMobil shares, at closing.

The number of ExxonMobil shares paid per share of InterOil will be calculated based on the volume weighted average price (VWAP) of ExxonMobil shares over a measuring period of 10 days ending shortly before the closing date (Share Consideration).

- A Contingent Resource Payment (CRP), which will be an additional cash payment of $7.07 per share for each trillion cubic feet equivalent (tcfe) gross resource certification of the Elk-Antelope field above 6.2 tcfe, up to a maximum of 10 tcfe.

The CRP will be paid on the completion of the interim certification process in accordance with the Share Purchase Agreement with Total SA, which will include the Antelope-7 appraisal well, scheduled to be drilled later in 2016. The CRP will not be transferrable and will not be listed on any exchange.

When concluded, this transaction will give ExxonMobil access to InterOil’s resource base, which includes interests in six licenses in Papua New Guinea covering about four million acres, including PRL 15. The Elk-Antelope field in PRL 15 is the anchor field for the proposed Papua LNG project.