08-02-2013, 04:07 AM
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Thursday, 1 August 2013
HORIZON Oil plans to raise $A53.5 million through a fully underwritten share offer as Osaka Gas faces red tape delays to making its first payment under their new partnership in Papua New Guinea.
The offer made yesterday is over the issue of 162 million ordinary shares at 33c each – almost an 11% discount to the previous day’s close.
Fully underwritten by UBS AG, the funds will be used for Horizon’s near-term exploration and development program.
As part of an estimated $US500m, milestone-linked deal to acquire 40% of Horizon’s PNG acreage, Osaka will make an initial payment of $74m.
However, the transaction is subject to Horizon receiving its long-awaited petroleum development licence from the PNG government for the wet-gas Stanley field licence PRL 4, along with customary consents.
“No material issues have been raised with regard to grant of the Stanley PDL or obtaining of other consents, however timing is uncertain and beyond the control of Horizon Oil,” the oil producer said.
The retail component of the offer is only available to Horizon’s eligible Australia and New Zealand-based shareholders and is open from August 9-23.
Trading of the new shares is expected on August 15 for the institutional tranche and on September 3 for the retail tranche.
Shares in the New Zealand and China crude oil producer closed at 37c on Tuesday and were in a trading halt yesterday. |
