Horizon Oil (ASX: HZN) has completed the retail component of its $53.5 million Entitlement Offer, raising about $21 million to fund its oil and gas exploration and development across Papua New Guinea, China and New Zealand.

The company had completed the institutional component of the offer on 31 July 2013, raising about $33 million.

Together with its funds from the US$204 million farm-in of Osaka Gas to its PNG tenements, Horizon is well positioned to develop and realise the commercial value of its acreage. 

Eligible retail shareholders have subscribed for approximately 31.4 million new shares priced at $0.33 each, or about $10.4 million, while the shortfall of about 31.5 million shares will be allocated to the Underwriter UBS AG and various institutional investors who were sub-underwriters.

Japan's second-largest city gas utility will pay Horizon US$74 million on completion of the transaction, giving it a 40% interest in its assets in PNG’s Western Province. Osaka Gas will pay a further US$130 million in cash upon a final investment decision for an LNG project.

The company has also spud the Tingu-1 exploration well targeting Best Estimate Contingent Resource of about 400 billion cubic feet of gas and 22 million barrels of oil.

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