Horizon Oil Limited advises that Oasis Energy Investments Pty Ltd and Ward Ferry Management Ltd1 have committed to exercise their respective options over unissued shares in the Company (“Options”).
The abovementioned entities hold 10,505,326 options, being approximately 26% of the total Options outstanding. The Options have an exercise price of A$0.35 and expire at 5.00pm Sydney time on 28 February 2008. As consideration for such commitment to exercise their Options, Horizon Oil will pay a commitment fee of 2.857% of the subscription amounts (A$0.01 per option exercised) to the abovementioned entities.
The closing price of the Company’s shares on 27 February 2008 was A$0.32.
Further to the Company’s release on 25 February 2008 in respect of the progress of the second well in its exploration drilling program in Block 22/12, offshore China, as at 0600 (local time) on 27 February 2008, the Wei 6 12E-1A well had been drilled to 986 mBRT. The current operation is preparing to test the Blow Out Preventer prior to drilling the next 12¼" hole section.
Based on the drilling progress reported above and the estimated time required to drill to the objective zones, the results for the well will not be in hand before 5.00 pm Sydney time on 28 February 2008.
