Correction: Corrects the first paragraph to say InterOil stock is up 25% for the year to date, not 2.5%.
NEW YORK (TheStreet) - -The Papua New Guinea (PNG)-focused InterOil Corp (IOC) announced the sale of its refinery and petroleum products distribution business to Puma Energy for $525.6 million. Investors have already shown their delight by pushing shares up over 2% to $64.22, up 25% for the year to date.
The deal will make the Singapore-based Puma Energy a major player in PNG's emerging energy industry and the owner of the only oil refinery in the island nation. For InterOil, the deal will allow the company to increase its focus and expand in its "core upstream and LNG [liquefied natural gas] business," InterOil's COO Jon Ozturgut said in a statement.
The announcement comes after InterOil sold most of its stake in the prized Elk and Antelope gas field to Paris-based supermajor Total (TOT). InterOil is currently evaluating its lease holding and will release the well-test results in the near future. Positive test results can open doors to additional deals with energy companies looking to add PNG's gas reserves to their portfolios.
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