Oz Horizon Oil Divests PNG Assets

Sydney-listed Horizon Oil has agreed to sell its assets in Papua New Guinea (PNG) to Arran Energy for $3.5mn, it said on October 27. On completion of the deal, Horizon will cease to have any operations in PNG.

Arran is a privately owned Australian company and is an existing co-venturer with Horizon in PNG. Arran’s assets in PNG include operated working interest PDL 10 (Stanley field) and PRL 40 (Puk Puk/Douglus fields) and non-operated interest in PRL 21 (Elevala/Ketu fields) and PRL 28 (Ubuntu field). Horizon has 30% stake in Stanley, 30.15% in Elevala/Ketu fields, 30% in Ubuntu and 20% in Puk Puk/Douglus fields.

“Divestment of our PNG interest was carefully considered in the context of our overall corporate strategy and we are pleased to have agreed terms with Arran Energy. The transaction will provide with an opportunity to rest and optimise its asset portfolio and focus its efforts in securing a significant growth asset,” Horizon CEO Chris Hodge said.

In addition to PNG, Horizon has a presence in China and New Zealand.