Horizon advises that its acquisition of a 25% non-operated interest in the producing Mereenie oil and gas field completed today.

Horizon announced on 14 February 2024 that it had executed a sale and purchase agreement with  Macquarie Mereenie to acquire a 25% non-operated participating interest in the OL4 and  OL5 development licences, Northern Territory, Australia, which contain the producing Mereenie conventional oil and  gas field. The acquisition was executed together with New Zealand Oil and Gas (“NZOG”), an incumbent Mereenie  joint venture partner, who acquired a further 25% participating interest in OL4 and OL5 from Macquarie on identical terms.

The effective date of the transaction is 1 April 2023, with revenues earned and costs incurred during the period from effective date to completion adjusted against the initial cash consideration of A$42.5 million (~US$27.6 million). Funding for the initial cash consideration is from a new A$42.5 million senior debt facility which was recently executed with Macquarie Bank as per Horizon’s announcement on 4 June 2024. Financial close and drawdown of the facility occurred earlier today to enable completion of the acquisition.

Central Petroleum remains as operator of the Mereenie joint venture and manages the gas sales function on behalf of Horizon, New Zealand Oil & Gas and Cue under a joint marketing agreement.

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