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The sale to South African company Durban Roodepoort Deep, was valued at $US73.30 million, comprising $US57.2 million in cash; and 6.664 million DRD shares.
"The completion of the sale of our Porgera interest to DRD has resulted in a significant inflow of cash, which has materially offset the acquisition cost of the Chevron Niugini oil assets, completed in October," said Peter Botten, Oil Search's managing director.
"Following the completion of both the Porgera sale and the Chevron Niugini acquisition, Oil Search's gearing level (defined as Net Debt/Net Debt + Equity) is now approximately 14%.
"This very strong balance sheet enhances the company's ability to pursue value adding opportunities in Oil Search's core oil and gas business and in capital management activities," Botten said.
The Porgera Gold Mine is operated by Placer Dome Inc and Mineral Resources Enga Limited (MRE) through a joint venture relationship.
