|Horizon Oil interest|
|Puk Puk and Douglas fields||20.00%*|
|Surrounding exploration licences||80 – 100%|
*Percentage participating interests are calculated after the acquisition of a 20% economic interest in PRL 40 and Divestment of a 20% economic interest in PRL 28 occurring subsequent to 30 June 2017, subject to customary PNG government approval. See market announcement of the transaction dated 18 July 2017
During the year, Horizon Oil, as operator of two of the four licences that will comprise the Western Province gas aggregation scheme, progressed planning for the proposed Western LNG project.
The development concept has now been defined, with the emphasis being on selection of a simple scheme with lowest technical and execution risk, maximum use of standard, proven technology and high system reliability. Pre-FEED studies of the key elements of the project – upstream gas processing, export pipelines and the liquefaction facility – are now underway with selected contractors who are well qualified and possess a good level of PNG experience. The results of these studies, which importantly will include Class IV (-15%/+25%) cost estimates, are expected by the end of calendar year 2017. The next step will be to progress to FEED.
The cash cost is confidential but the Company’s cash position will not be materially reduced as a result of the strategic acquisitions, taking into account the consideration for the acquisitions and the near term exploration and development costs arising from the expanded resource base.