Horizon deal approved

EAGLEWOOD Energy has received PNG government approval to farm-out a 25% stake of PPL 259 in Western Province to Horizon Oil for $US2.5 million. An exploration well in this licence is expected in the December quarter.
Horizon deal approved Horizon deal approved Horizon deal approved Horizon deal approved Horizon deal approved

The Toronto-listed explorer said all conditions for this farm-out transaction had been satisfied.

On completion of the deal, Horizon has also agreed to fund its 25% share of the underway seismic program in this licence plus fund the first $1.38 million of Eaglewood's seismic costs.

Eaglewood is now making plans to lodge the necessary paperwork with regulators to complete the previously announced 25% farm-out of PPL 259 to Mega Fortune International.

Eaglewood chief executive officer Brad Hurtubise said Horizon brought a wealth of experience and information to the licence joint venture partners.

"With this deal closed we can begin in earnest the process to get the Mega deal closed, which will likely take a few months," he said.

"With both transactions closed, our phase one and two seismic programs and our next well will be fully funded.

"We can use our remaining cash balance to further the unitisation discussions with the PRL 4 joint venture [Stanley field in Western province] or to pursue additional exploration activities on our 100% owned PPL 257 [offshore Oro province]."

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