Horizon Oil has decided to sell its assets worth US$3.5 million (nearly A$5 million) including its entire portfolio in PNG - to Arran Energy Investments.
CEO Chris Hodge says that this decision was difficult as they have been part of the company for many years already.
'While undoubtedly a substantial, good quality resource and our ability to realise the value in PNG was becoming increasingly long-dated and uncertain, as well highlighted by the impairment write-downs taken earlier this year," he said. "Divestment of our PNG interest was carefully considered in the context of our overall corporate strategy and we are pleased to have agreed on terms with Arran Energy. The transaction will provide Horizon with an opportunity to rest optimise its asset portfolio and focus its efforts on securing a significant growth asset.”
Horizon Oil has been operating in PNG since the 1990's.
