Horizon Oil disclosed Monday that the Hon. Nixon Duban, PNG’s Minister for Petroleum and Energy, granted the Stanley Gas Project development license (PDL 10) and pipeline license (PL 10) in Papua New Guinea (PNG) to Horizon Oil (Papua) Limited and its fellow licensees on Friday May 30.
At the successful conclusion of the Stanley Gas Project Development Forum, in a formal ceremony attended by Hon. Boka Kondra, Member for North Fly, Western Province Governor, Hon. Ati Wobiro and other dignitaries, Horizon Oil was presented the development and pipeline licences by Minister Duban.
The grant of the development and pipeline license enables the commencement of development activities including the drilling of the Stanley-3 and -5 development wells, site preparation and facilities construction.
As previously advised, the grant of the Stanley Gas Project development license was the final condition precedent in respect of Horizon Oil’s sale of 40 percent of its PNG petroleum interests to Osaka Gas of Japan. Under the terms of the agreement, the Company will receive the first milestone payment (~$78 million) of the aggregate $204 million within 10 business days.
The completion of the Osaka Gas transaction will satisfy a material condition precedent to the Company’s proposed merger with Roc Oil Company Limited by way of a scheme of arrangement, announced April 29.
Horizon Oil’s CEO, Brent Emmett, commented:
"The Stanley joint venture has enjoyed the strong support of the Stanley area landowners, the PNG National and Western Province governments and key government departments in reaching this significant milestone, being the grant of the Stanley development and pipeline licenses. Horizon Oil shareholders, no doubt, will share the board and management’s considerable gratitude for such support.
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