Horizon Oil and Osaka Gas to form a strategic alliance to commercialise Horizon Oil's net certified reserves and contingent resources of 125 mmboe and develop acreage covering 7,900 sq km in Western Province, Papua New Guinea.

Potential profit of approximately US$153 million, made up of US$23 million on completion and a further amount of approximately US$130 million upon achieving the LNG FID milestone.

Key points

■ Horizon Oil advises that it has today entered into an agreement to sell 40% of its Papua New Guinea assets to Osaka Gas Co. Ltd. of Japan for US$204 million, including US$74 million in cash on completion, a further US$130 million in cash upon FID for an LNG project, plus potential production payments where threshold condensate production is exceeded. ■ Horizon Oil and Osaka Gas to form a strategic alliance to commercialise Horizon Oil's net certified reserves and contingent resources of 125 mmboe and develop acreage covering 7,900 sq km in Western Province, Papua New Guinea.

Tags: Horizon Oil Limited, Osaka Gas