Company secretary Michael Sheridan said the capital raised, combined with existing cash reserves of about A$4 million, would finance the drilling of Kapul-1 in PNG and ongoing development planning for the offshore Maari field in Taranaki, New Zealand.
It would also be used for Chinese projects, inlcuding a feasibility study and development plan for the offshore Chinese Block 22/12 12-8 West field and geophysical and geological interpretation of the offshore China Lei Dong field.
Any surplus cash would be used to pursue potential new business opportunities and to address other working capital requirements, Sheridan said.
The share purchase plan gives shareholders with a registered address in Australia or New Zealand the opportunity to subscribe for up to A$5000 worth of ordinary shares. The offer closes on December 22.
Sheridan said the Horizon board – conscious of the potential impact of the PNG Kapul-1 well that is scheduled to be drilled during this time – considered it appropriate to offer the SPP at a substantial discount.
The shares would be offered at a price of 12 cents, representing a discount of 19% on the volume-weighted average price during the preceding 10 days’ ASX trading.
The board intended that the SPP would be partly underwritten and Horizon was finalising arrangements with ABN AMRO Morgans regarding that, Sheridan said.
