- Horizon Oil (HZN) has sold off its assets in Papua New Guinea (PNG) for US$3.5 million (nearly A$5 million)
- The company agreed to sell its subsidiary to Arran Energy Investments, which includes its entire asset portfolio in PNG
- Horizon said the decision to leave did not come lightly, however, PNG was “becoming increasingly long-dated and uncertain”
- The deal is expected to be completed by the fourth quarter of 2020
- On the market this morning, Horizon is down 6.9 per cent and is trading for 5.4 cents per share
Horizon Oil (HZN) has decided to leave Papua New Guinea (PNG) as it sells assets for US$3.5 million (nearly A$5 million).
The company has agreed to sell its subsidiary to Arran Energy Investments, which includes its entire asset portfolio in PNG.
Arran is a privately owned Australian company and an existing co-venturer with Horizon in PNG.
To complete this deal there will be a number of satisfaction conditions, which is expected to be completed in the fourth quarter of 2020.
Under the purchase, Horizon will release Osaka Gas Australia and related parties from obligations under the 2013 Asset Sale Agreement.
CEO, Chris Hodge, says the decision to sell PNG was not easy as it was a big part of the company’s story for many years.
‘While undoubtedly a substantial, good quality resource and our ability to realise the value in PNG was becoming increasingly long-dated and uncertain, as well highlighted by the impairment write-downs taken earlier this year,” he said.
“Divestment of our PNG interest was carefully considered in the context of our overall corporate strategy and we are pleased to have agreed on terms with Arran Energy. The transaction will provide Horizon with an opportunity to rest optimise its asset portfolio and focus its efforts on securing a significant growth asset,” he added.
On the market this morning, Horizon is down 6.9 per cent and is trading for 5.4 cents per share at 11:46 am AEDT.