Horizon Oil is pleased to advise that it has entered into an agreement with Todd Maari Limited (Todd) to acquire its 16% interest in PMP 38160, which contains the producing Maari and Manaia fields.

The consideration to be paid for the interest is US$17.6 million, subject to customary working capital and purchase price adjustments, with an effective date of 31 December 2017. The transaction is subject to New Zealand Government Ministerial approval, approval of the Overseas Investment Office, joint venture consent and other customary conditions. The PMP 38160 Joint Operating Agreement does not provide for pre‐emptive rights.

The acquisition will be funded partly from the company’s cash reserves, which were US$28.4 million as at 30 September 2017 and partly from the company’s reserves‐based debt facility.

When the acquisition completes, the PMP 38160 joint venture will comprise:‐ 

• Horizon Oil International Limited: 26%
• OMV New Zealand Limited: 69% (operator)
• Cue Taranaki Pty Ltd: 5%

Gross production from Maari and Manaia field on 2 November 2017 was 8,840 barrels of oil per day. The MR7A well was shut in for a pump change and perforation of a new reservoir zone.