Court Case Postpones InterOil, Exxon Deadline

InterOil Corporation and ExxonMobil have decided to extend the deadline for completion of their deal.

In a statement issued December 14, Papua New Guinea focused company said following the decision by the Court of Appeal of Yukon to allow the appeal lodged by founder and former CEO Phil Mulacek, its Independent Transaction Committee is undertaking a detailed and thorough review process relating to the proposed transaction.

“To accommodate the new review process, ExxonMobil and InterOil have agreed to extend the outside date of the current Arrangement Agreement,” InterOil said.

On November 4, the Court of Appeal of Yukon allowed the appeal lodged by Mulacek, and overturned the Supreme Court of Yukon's approval of the pending transaction with Exxon. Mulacek, who is still a shareholder, has been arguing that InterOil shareholders have not been compensated adequately. Early October, the Supreme Court of Yukon had approved the transaction, calling it fair and reasonable. InterOil is incorporated in Yukon, Canada.

In May, InterOil entered into a binding agreement to be acquired by Oil Search for $2.2bn, with Oil Search to sell a little over 60% to Total for $1.2bn. But on July 21, ExxonMobil trumped Oil Search’s bid to acquire InterOil with a $2.5bn-$3.6bn bid, the sum payable depending on the size of the reserves.

Shardul Sharma