Papua New Guinea-focused player InterOil on Monday said that the $2.5 billion takeover deal by U.S.-based energy giant ExxonMobil had been approved by a Canadian Supreme Court.
The Supreme Court of Yukon approved the pending transaction after the close of business on October 7 finding that the transaction is “fair and reasonable,” InterOil said in its statement.
The decision of the Supreme Court of Yukon followed a contested hearing held on September 27.
Former InterOil CEO Phil Mulacek, who contested the transaction at the previous court hearing, has filed a notice of appeal and requested a stay of the Supreme Court’s decision pending such appeal, the statement reads.
InterOil said it plans to seek to have any appeal heard on an expedited basis, and InterOil and ExxonMobil “intend to close the transaction promptly following receipt of a favorable resolution.”
When concluded, the 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, which includes the Elk-Antelope which is the anchor field for the proposed Papua LNG project.
ExxonMobil earlier also said it aims to work with its co-venturers and the government to evaluate processing of gas from Elk-Antelope field by expanding the PNG LNG project.