HORIZON OIL LIMITED 
The proceeds of the debt have been applied, together with available cash, to redeem the remaining US$58.8m of convertible bonds issued in 2011 to increase the Company's interest in, and provide the development funding for, the Company's core production asset - Block 22/12, offshore China.
As previously advised, the refinancing arrangements extend the maturities of the Company's senior and subordinated debt to an average of no less than three years at a volume weighted interest rate of LIBOR plus 5% pa. ensuring greater financial stability as the Company continues its progressive reduction of debt with revenue generated from the Company's production assets in China and New Zealand.
In accordance with the terms of the subordinated debt facility and as approved by shareholders at the abovementioned general meeting of 6 September 2016, the Company is to issue 300 million warrants over unissued shares of the Company, which will have the exercise price of A$0.061 per share. In accordance with section 713 of the Corporations Act, Horizon Oil issues the attached transaction specific Prospectus.
To view the prospectus, please visit:
http://abnnewswire.net/lnk/0H45AI55
About Horizon Oil Limited:
Horizon Oil Limited (ASX:HZN) is an ASX-listed petroleum exploration and production company, with a geographic focus on the Asia-Pacific region. The company currently produces over 4,000 barrels of oil per day net from its fields in New Zealand and China, which generated over US$80 million in net operating income after operating expense for the year ended 30 June 2015. Further development candidates remain in and around these producing fields.
Horizon Oil maintains prudent policies of oil price hedging and loss of production insurance to ensure that sufficient cash flow is generated to meet the funding requirements of its growth program.
The company holds a large undeveloped reserves and contingent resource position in Western Province, onshore Papua New Guinea. These are liquids-rich gas resources and reflect Horizon Oil’s strategy to focus on Asian gas for growth. Gas constitute about 2/3 of the reserves and resource base. Commercialisation pathways for the gas are emerging.
Although Horizon Oil anticipates continuing strong cash generation over the medium term from its existing producing fields, these developed reserves account for only 10% of total reserves and resource base. The focus going forward will be on new field development, funded largely from existing production cash flow.
Source:
Horizon Oil Limited
Contact:
Mr Michael Sheridan Chief Financial Officer / Company Secretary Phone: +61-2-9332-5000 Email: exploration@horizonoil.com.au www.horizonoil.com.au
