Horizon Oil resets lower conversion price for 5.5% convertible bonds

New York, June 17 - Horizon Oil Ltd. said it has reset the conversion price for its $80 million of 5.5% convertible bonds due 2016 in accordance with their terms.

The new conversion price is $0.416, down from $0.520 initially.

Under the terms of the notes, the conversion price is reset if the volume-weighted average price of the company's stock for the 20 consecutive trading days immediately prior to June 17, 2013, June 17, 2014 and June 17, 2015 is less than the conversion price. The new price will be the average market price but is limited to no less than 80% of the initial conversion price of $0.520.

The VWAP for the period preceding June 17 of this year was $0.374. Since this was less than 80% of the initial conversion price, the 80% limit was used.

Horizon Oil is a Woolloomooloo, Australia-based oil exploration and production company focused on southeast Asia.

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