Horizon Oil (HZN) is pleased to advise shareholders that it has completed a transaction with a subsidiary of Talisman Energy Inc. regarding the Company’s interests of 100% of Petroleum Retention
Licence (PRL) 4 and 49.65% of PRL 5 in Western Province, Papua New Guinea. The net effect of the transaction, which includes the transfer of a working interest and the shares in a wholly-owned subsidiary of Horizon Oil to Talisman, is that Horizon Oil and Talisman will each hold 50% interests in PRLs 4 and 5. The consideration of US$60 million to be received by Horizon Oil to be paid as US$30 million in cash which was received at closing on 14 September 2009, US$8 million to be drawn down at any time and applied to Horizon Oil’s share of capital expenditure on the licences; US$22 million to be drawn down and applied to Horizon Oil’s share of capital expenditure on the licences after PNG Government approval of the working interest transfers required by the transaction has been granted.
Talisman Energy Inc. is a global, diversified, upstream oil and gas company, headquartered in Canada. Talisman’s three main operating areas are North America, the North Sea and Southeast Asia. The Company also has a portfolio of international exploration opportunities.