The well regarded independent valuers, Grant Samuel & Associates, said that while the offer to Orogen shareholders was less than its assessment of the company's underlying value, the merger was still in the best of Orogen shareholders.
Under the proposal, Orogen's shareholders will receive 0.45c and 1.2 Oil Search shares for each Orogen share owned at the merger record date.
The merged company will have higher gearing than Orogen and will be more highly leveraged to exploration success and the commercialisation of the PNG Gas project, the independent valuers said.
Many in the markets believe the merger, which was announced last month, would certainly help the $6.8 billion PNG to Queensland move a step closer to reality.
