Ann: Sale of PNG Interests, page-44

Only Aaran Wanted In
OSH, XOM, STO and/or Chinese interests didn't purchase into the assets when Repsol sold (a very long sales process).
PNG rule changes (combined with LNG prices) have stalled/slowed PNG LNG expansion and Papua-LNG.
Arran finally purchased at a very low price.
Arran are taking a (relatively small) punt.
Were we throwing good money after bad?
May be, may be not.
However, at best, realising any value would be a very long way off.
In the interim, it is eating cash

So what now?

We get a small amount of cash, cica, $3.5m
We save PNG costs, which are higher as we are the operator at Elevala, circa, $1m p.a.
We have excellent operators in Chana and and with Jadstone coming in NZ, we can wind back costs further, maybe saving another $1m p.a.

More Assets are in Our Price Range
Clearly the additional cash (from PNG sale), and increased cashflow (from cost savings) can be used to secure additional funding for an acquisition.
Realistically, this would increase the asset price range that HZN can acquire, maybe adding $15m to $20 to the limit available.
We picked up 16% of Maari for $17m from memory.

Doing a Deal

There are plenty of deals around.
Will they seal a good to excellent deal?
Let's hope so.

Realistically, once a "first deal" pays for itself, the strengthened balance sheet can be used to acquire another, larger asset.
And so the (theoretical and hopefully real) growth story continues - hopefully!