Horizon Oil (ASX: $HZN) finalises financing for Mereenie acquisition

Horizon Oil Limited (ASX: $HZN) has executed a new AUD 42.5 million senior debt facility agreement with Macquarie Bank to fund the acquisition of the 25% non-operating interest in the 0L4 and 0L5 development licenses, which contain the producing Mereenie conventional oil and gas field in Northern Territory, Australia. The facility has a term of 5 years with semi-annual repayments and an interest rate of BBSW + 5%. Drawdown of the facility is subject to finalisation of the remaining Mereenie acquisition transaction conditions, including Government and Regulatory approvals.

Horizon CEO, Richard Beament, on the financing agreement

The finalisation of the facility agreement is a key transaction milestone for the acquisition of the Mereenie assets. The initial consideration is supported by the contracted gas offtake from the asset and is largely self-funded, which has enabled Macquarie Bank to provide full debt funding for the initial consideration on attractive terms. Pleasingly, the facility agreement is only secured over the interests in Mereenie. We expect drawdown and financial close of the facility to complete shortly, subject to finalisation of other remaining transaction condition precedents and Government and Regulatory approvals.

Summary of Horizon Oil's financing for Mereenie acquisition

Horizon Oil Limited (ASX: $HZN) has successfully secured a new AUD 42.5 million senior debt facility agreement with Macquarie Bank to fund the acquisition of the 25% non-operating interest in the 0L4 and 0L5 development licenses, which include the producing Mereenie conventional oil and gas field in Northern Territory, Australia. The facility, structured as a reserves base lending facility, has a term of 5 years with semi-annual repayments and an interest rate of BBSW + 5%. The drawdown of the facility is contingent upon the finalisation of the remaining Mereenie acquisition transaction conditions, including Government and Regulatory approvals. Horizon CEO, Richard Beament, expressed confidence in the financing agreement, highlighting that the facility is only secured over the interests in Mereenie and expects the drawdown and financial close to complete shortly, subject to finalisation of other remaining transaction condition precedents and Government and Regulatory approvals.