Oil Search rejects Woodside's offer

The Oil Search Limited (OSL) Board has unanimously decided to reject Woodside's non-binding conditional indicative proposal, to acquire all the shares in Oil Search.

The OSL Board has announced that their (Woodside's) proposal to buy four OSL shares for every Woodside share, is a highly opportunistic and grossly undervalues the Company, that is why it has been rejected by their shareholders.

OSL Chairman Rick Lee said, this proposal will significantly alter the fundamental characteristic of an investment in the company, and also dilute the present growth profile available to its shareholders, because OSL has a material equity position in the world class PNG LNG Poject, and attractive low cost LNG growth opportunities.

Mr. Lee said, the Board believes that their company is in a very strong position, both operationally and financially, and they have a low cost, high quality production base which is generating cash flows and excellent growth opportunities with the proposed PNG LNG Train 3, and Papua LNG among the most competitive new developments in the world.

He also added that OSL provides its shareholders with a pure exposure to PNG, and they are fully committed to this country, and their focus is to continually build and create shareholder value through the Company's strong future growth prospects.