Horizon Oil (ASX: HZN) is focused on exploration, development and production of oil and gas within its Southeast Asian target area.
Horizon Oil increases Papua New Guinea footprint through farmin with Eaglewood Energy
Horizon Oil (ASX: HZN) has started to execute the company strategy of increasing its acreage position in Papua New Guinea, by entering into a farmin agreement with Eaglewood Energy Inc. to earn a 25% interest in PPL 259 in the Western Province.
Terms include Horizon reimbursing a proportionate share of Eaglewood’s PPL 259 sunk costs which amounts to around US$2.5 million.
Horizon will also carry Eaglewood for future seismic and drilling costs to a capped amount of US$6.375 million, with the program being operated by Horizon.
Papua New Guinea has recently seem an increase in industry activity, with some large projects gaining traction, with a major gas aggregation play emerging in Western Corridor / Offshore.
Horizon has already outlined the potential benefits of the acquisition, which include an increase in the inventory of prospects and leads which will spread geological risk, with a larger gas reserves base providing the potential to provide the scale needed for monetisation.
Brent Emmett, chief executive officer, said, “At the AGM last November, we flagged our intention of bulking up the company’s acreage position around what we see as the sweet spot for liquids-rich gas in the Papuan Basin foreland, which is centred on our planned production hubs at Stanley and Elevala/Ketu."
