Horizon Oil Limited has provided an update on its Thailand acquisition, confirming the finalization of financing arrangements that support its strategy to expand production. The transaction, initially announced earlier this year, involves acquiring a 7.5% working interest in the Sinphuhorm conventional gas and condensate field and a 60% working interest in the Nam Phong conventional gas field. Under a consortium arrangement, Horizon Oil Limited is set to acquire 75% of the shares in ExxonMobil Exploration and Production Khorat Inc., while Matahio Energy takes the remaining 25% and assumes operational responsibilities for the Nam Phong field. Once completed, the transaction is expected to add roughly 2,000 barrels of oil equivalent per day to the company’s production, with the increased cash flows anticipated to significantly reduce the US$28.5 million cash consideration due at settlement. The company has amended its senior debt facility with Macquarie Bank to secure this deal through a reserves-based lending structure comprised of three tranches. The facility now includes an increase in available funding under Tranche A from around A$40 million to up to A$50 million, supported by recent infill well results and strategic six-year gas sales agreements, including one with the NT government, with interest set at BBSW plus 5% and maturing on 30 June 2029. Additionally, Tranche B1 offers up to US$15 million of finance, drawn against cash flows from working interest assets in Block 22/12 in China and secured by a new Block 22/12 and Maari package, maturing on 31 December 2027 with interest payable at SOFR plus 5%. A further US$10 million under Tranche B2 is earmarked for post-completion needs such as asset development and general corporate purposes, secured by Horizon Oil Limited’s 75% stake in ExxonMobil Exploration and Production Khorat Inc. and maintaining technical diligence on the acquired Sinphuhorm interest, with an interest rate of SOFR plus 6% and a maturity also set for 31 December 2027. The CEO, Richard Beament, highlighted that extending the financing arrangement with Macquarie Bank provides not only the necessary liquidity to complete the acquisition but also the flexibility to further develop the company’s portfolio of contingent resources. The strong production levels and favorable oil-linked gas prices since January have helped mitigate the cash outlay at completion, and the transaction is expected to be fully drawn down and closed in the coming months. Market sentiment around the news is mixed. On the bullish side, the move to secure additional financing and the clear focus on increasing production with proven assets adds a layer of confidence in Horizon Oil Limited’s growth potential. The strategic alliance in the consortium and supportive cashflow from established production fields could translate into improved financial performance and increased investor appeal. Conversely, the bearish perspective might point to potential risks associated with integration challenges, the complexities of managing a multinational consortium, and the inherent uncertainties in commodity markets which could impact future cashflows and refinancing terms.