Horizon Oil Ltd

FY26 results: record production of 2.15 MMboe, EBITDAX US$56.4m, operating cash flow US$47.2m and cash US$37.4m. A final dividend of A$0.01 per share (A$17.4m) is payable in October 2026. Cue is consolidated for only 13 days.

annual report

First gas flowed on 11 August 2026 from the Sinphuhorm Pad D facility in Thailand, about 50 days early; the PH-14 well tested at 25-30 MMSCFD gross. Horizon holds an effective 7.5% interest. This delivers the Pad D first gas flagged for later 2026.

production update

Horizon's net 2P reserves rose 51% to 13.6 MMboe at 30 June 2026 (from 9.0), mainly from the Thailand and Cue acquisitions, replacing about 200% of 2.1 MMboe production. 2C resources rose to 19.8 MMboe; 2U prospective rose to 14.3 MMboe (unrisked).

resource reserve update

Horizon completed its Cue takeover, holding 57.03%. It paid about A$17.8m cash and issued 146,890,089 Horizon shares. Production rises about 15% to roughly 7,300 boepd and net 2P reserves by over 20% to about 15.35 MMboe. Four Horizon executives joined Cue's board.

business combination

Horizon completed buying Echelon's 139,885,879 Cue shares (19.90%) under the March pre-bid agreement. With the offer closed on 19 June, it now has a relevant interest in 57.06% of Cue.

asset acquisition disposition

Horizon declared its Cue offer unconditional, with its voting power at 52.66%. Payment to accepting holders is accelerated to within 9 business days of the 19 June close, by 2 July 2026.

business combination

Horizon says Echelon has accepted, giving it a 50.46% fully diluted interest in Cue (51.42% undiluted voting power) and satisfying the 50.1% minimum acceptance condition. It warns non-accepting holders of reduced liquidity and sees a rival bid as unlikely.

business combination

Horizon gave notice that the minimum acceptance condition of its Cue offer has been fulfilled, so the offer is free of that condition. Other conditions, including regulatory approvals, remain.

business combination

The Power and Water letter of intent for new Mereenie gas has expired with no replacement agreed. The JV suspends the two infill wells, cutting Horizon's 2026 capex by about US$5m. Existing supply to 2030 is unaffected; the JV will seek other buyers.

joint venture update

The Takeovers Panel declined to conduct proceedings on Cue's application, finding no reasonable prospect of unacceptable circumstances and insufficient material to infer an Echelon-Horizon association. This removes the main obstacle to the bid and clears the way for Echelon to accept.

regulatory community update

Cue's independent directors formally recommend shareholders REJECT Horizon's offer by taking no action. Reasons include an inadequate control premium, opportunistic timing with Horizon shares at a 10-year high, dilution, Horizon's debt, and heavy conditionality.

business combination

The Takeovers Panel received an application from Cue alleging an undisclosed Horizon-Echelon association and that the pre-bid deal chills competition. Cue seeks to stop Echelon accepting into the bid. No Panel decision yet; this puts the Cue takeover timetable at risk.

regulatory community update

Echelon, which holds 49.93% of Cue, confirmed it will sell 19.99% of Cue to Horizon at A$0.115 per share, subject to Northern Territory approvals. It intends to accept the bid for its remaining Cue shares 21 days after the offer opens, absent a superior proposal.

business combination

Horizon launched an off-market takeover of Cue Energy (Cue holds Mereenie 7.5%, a Horizon partner): A$0.008 cash plus 0.5625 Horizon shares per Cue share, about 14.3c, a 10% premium. Horizon already holds 19.99% via a pre-bid deal with Echelon at A$0.115; Cue holders would own 16.31% of the combined group.

business combination

The Nam Phong joint venture approved a booster compressor in Thailand, expected to lift field output by at least 40% from mid-2026. Horizon's share of cost is under US$1.5m, funded from cash and revenue. Builds on the Thai acquisition completed in August 2025.

material agreement

Mereenie JV (Horizon 25%) signed a binding letter of intent with NT's Power and Water for early works on two new wells, drilling targeted mid-2026, and firm gas supply to 2034. Binding gas sales agreements are targeted by 20 February 2026; follows the 2026-27 McArthur River deal.

contract award

The Mereenie JV signed a firm, take-or-pay, fixed-price gas deal with McArthur River Mining for 4.9 PJ over 2026–27 (1.3 PJ net to Horizon), plus as-available volumes. Addresses the gas being re-marketed after the Arafura deal lapsed.

contract award

FY25 results: production rose 13% to 1.62 MMboe, revenue US$105.3m (down 5.5%), profit before tax US$16.7m. Final dividend of 1.5c declared (3.0c for the year). Cash US$39.8m, net cash US$13.7m at 30 June.

annual report

The Maari permit (Horizon 26%) was extended ten years, from December 2027 to December 2037, with no added work obligations. Resolves the extension application lodged in September 2024; field output was above 5,600 bopd in August.

regulatory community update

Horizon completed the Thailand purchase on 1 August 2025: effective 7.5% of Sinphuhorm and 60% of Nam Phong gas fields, adding about 2,100 boe/d. Net payable at completion was US$21.6m, funded mostly by the new Macquarie debt; up to US$7.5m contingent payments may follow.

asset acquisition disposition

At 30 June 2025, 2P reserves fell 9% to 9.0 MMboe from 9.9, as production of 1.6 MMboe outweighed a +0.8 Maari life-extension gain. 2C resources fell 8% to 12.3 MMboe. The Thai acquisition's 3.9 MMboe 2P is excluded until completion.

resource reserve update

Horizon signs an amended Macquarie facility to fund the Thai deal: Mereenie debt rises to up to A$50m, plus new tranches of US$15m and US$10m. Remaining cash payable at completion is US$28.5m, expected to fall as cash flow accrues. Completion expected in coming months.

debt financing

Horizon confirms the conditional Arafura gas agreement lapsed after the 31 March 2025 deadline passed without Arafura's investment decision. The Mereenie JV will re-market the firm gas from 2028. Ends the thread open since the earlier extensions; no replacement buyer yet.

joint venture update

Horizon agrees to buy 75% of Exxon's Thai subsidiary (consortium with Matahio holding 25%), giving 7.5% of Sinphuhorm and 60% of Nam Phong gas fields. Price US$30m plus up to US$7.5m contingent; 3.9 MMboe 2P, ~2,000 boe/d, largely Macquarie debt-funded. A re-entry to Thailand.

asset acquisition disposition

Half-year to December 2024: revenue US$55.8m (down 16%), EBITDAX US$29.4m, profit before tax US$11.2m, net cash US$22.5m. Horizon declares a 1.5c interim dividend (A$24.4m), payable April 2025, taking four-year distributions above A$224m.

half year report

Central (operator, a third party) says WM29 began flowing to sales on 20 January 2025 and tested at about 7 TJ/d (100% JV), double the 3 TJ/d pre-drill expectation. Output is capped at 6 TJ/d. WM30 is due online in early March. This resolves the awaited flow rate.

flow test result

Horizon says drilling began at Mereenie, with West Mereenie-29 spudded on 5 December 2024 in a two-well campaign expected to take two to three months. Horizon holds 25% and funds its share from cash. Wells could add up to 6 TJ/d gross for the NT Government gas deal.

drilling spud

Bruce Clement, a director since 2020, becomes Chairman after Mike Harding retired at the close of the 20 November AGM, as announced in August. Former CEO of AWE and Roc Oil, with over 40 years of oil and gas experience.

director officer appointment

FY24: profit before tax US$39.2m, EBITDAX US$71.5m, revenue US$111.5m, with 2P reserves more than doubling after Mereenie. Final dividend of A$1.5c declared, making A$3.0c (~A$48m) for the year. Net cash US$26.2m.

annual report

Chairman Mike Harding will retire at the November 2024 AGM after almost 6 years; director Bruce Clement succeeds him. Dr Peter Goode joins the board from 1 September 2024. Director Sandra Birkensleigh plans to retire in 2025.

director officer appointment

Mereenie JV approves drilling two development wells (West Mereenie 29 and 30), about 30 days each, starting around end-2024, with gas expected in the first half of 2025. Aims to lift capacity from 27 to above 30 TJ/d. Follows the NT gas deal; Horizon holds 25%.

drilling scheduled

The Mereenie JV signs a six-year (2025-2030) firm, take-or-pay gas deal with the NT Government, up to 8.3 PJ net to Horizon, and shortens the Arafura deal to 4.1 PJ from 2028. Contracts most producing gas to 2030 and supports two infill wells.

material agreement

Horizon completes the 25% Mereenie acquisition on 11 June 2024, funded by the A$42.5m Macquarie facility. Adds ~1,100 boepd and 6.4 mmboe of 2P reserves, more than doubling reserves. Third producing asset; a possible two-well drilling program later in 2024.

asset acquisition disposition

Horizon signs a A$42.5m, five-year senior debt facility with Macquarie to fund Mereenie, at BBSW + 5% with semi-annual repayments. Security is limited to the Mereenie interest plus a parent guarantee. Drawdown awaits remaining approvals.

debt financing

Horizon agrees to buy a 25% non-operated stake in the producing Mereenie field, NT, for US$27.6m (A$42.5m) plus up to US$5.8m deferred, fully funded by Macquarie debt. Adds 6.4 mmboe of 2P reserves (~129%) and ~1,150 boepd. Answers its inorganic growth search; subject to approvals.

asset acquisition disposition

FY23 record year: production up 44% to 1.9 mmbbls, revenue US$152.1m, profit after tax US$43.9m (up 80%). Final dividend of A$0.02/share declared, making A$3.5c (~A$56m) for the year. Net cash US$35.7m; the remaining US$7.9m debt was repaid 31 July.

annual report

Half-year to December 2022: revenue US$75.7m (up 93%), EBITDAX US$52.2m, and an interim unfranked dividend of 1.5 cents per share (~A$24m) declared. Also notes a ~US$1.35m seed investment in carbon credit developer Nobrac.

half year report

WZ12-8E 2P developed recovery (before production) rose over 150% to 4.89 mmbbl gross (1.24 net), up from 1.95 (0.49 net). After 1.20 mmbbl gross produced, reserves at 31 Dec 2022 are 3.69 gross (0.91 net). Delivers the reclassification flagged earlier.

resource reserve update

All four WZ12-8E Phase 2 wells are producing and the rig is released, ending the 10-month Block 22/12 campaign. Block output was 19,803 bopd gross (5,337 net) on 9 Jan 2023, up 4,466 bopd gross from 24 Oct 2022; WZ12-8E expected to peak in January.

drilling result

OMV and Jadestone terminated the proposed sale of OMV's 69% Maari interest, first announced in November 2019. OMV stays operator and Horizon keeps its 26%. This ends the long-pending deal that had been awaiting NZ approval.

asset acquisition disposition

Two WZ6-12 infill wells drilled; A10S1 was flowing 1,369 bopd gross (369 net) at 56% water-cut, finding an unexpected extra oil reservoir, and A12S1 is due online soon. Block output 15,337 bopd gross. The rig is moving to start WZ12-8E Phase 2 (at least three wells). Phase 1 output has fallen to 5,753 bopd gross.

drilling result

JV approves WZ12-8E Phase 2: three to five more wells, with three wells expected to add 0.75 mmbbl gross (0.20 net) of reserves. Net cost about US$7.5m from cash. Separately, the M3 appraisal well found no commercial hydrocarbons and was sidetracked to an M1 infill that hit oil.

drilling scheduled

FY22: revenue US$108.1m, EBITDAX US$73.0m, profit US$24.3m, net cash US$42.8m. A A$0.03 distribution is announced: 1.65c dividend plus 1.35c capital return (needs shareholder approval). Debt facility extended by US$20m; about 30% 2P replacement.

annual report

Board approves a A$0.03 per share distribution (about A$47.4m): a 1.65c unfranked dividend plus a 1.35c capital reduction (about A$21.3m). The capital return needs shareholder approval at an EGM on 7 October 2022.

dividend declaration

A8 exploration well found only two minor oil columns (3.6 m and 2.0 m) in Tertiary sandstones; the basement target had no hydrocarbons. Plugged and abandoned, freeing a platform slot for possible Phase 2 well. Effectively a disappointing result.

drilling result

Exploration well WZ12-8E A8 started drilling 6 July from the new platform, targeting 5.1 mmbbl gross prospective resource (1.4 mmbbl net) to about 1,260 m. Horizon holds 55%, with a dry-hole cost of about US$4.0m net.

drilling spud

CFO Richard Beament becomes Managing Director and CEO from 1 July 2022, replacing Chris Hodge, who assists with transition until 31 October. Gavin Douglas becomes COO, Kyle Keen CFO and Vas Margiankakos Company Secretary. Beament gets 19.6m performance rights, subject to shareholder approval.

director officer appointment

FY22 revenue guidance raised to US$105-110m (from US$90-100m) and EBITDAX to US$65-75m, on higher oil prices. Beibu output ~11,800 bopd gross in May; first two WZ12-8E wells ~3,700 bopd. A deeper Weizhou target found no hydrocarbons.

production update

First oil achieved from the WZ12-8E development in China (Horizon 26.95%), on budget and schedule, resolving the earlier platform-damage delay. Expected to average ~4,700 bopd gross in 2022, peaking near 10,000; five more wells in 3 to 4 months.

production update

The WZ12-8E platform was damaged by heavy seas during tow and returned ashore; it stays onshore until December 2021. First oil, previously Q1 2022, may slip a few weeks into the first half of Q2 2022. Repair costs are not expected to fall on the JV.

joint venture update

Horizon raised the proposed capital return from 1.4 to 3.0 cents per share (about A$47.4m), citing oil above US$70/bbl and costs under US$20/bbl. The EGM moves online to 10 August 2021. About 50% of production to December 2021 is hedged.

capital raising announcement

The board proposed an equal capital reduction of 1.4 cents per share (about A$22.1m), subject to shareholder approval. It is funded by the option proceeds and PNG sale consideration. The on-market buy-back, due to run to 3 September 2021, is discontinued.

capital raising announcement

Samuel Terry gave notice to exercise all 300m options at A$0.061, paying Horizon A$18.3m for 300m new shares. This resolves the option thread and adds shares, diluting existing holders by roughly a fifth.

security holder rights change

Half-year to 31 Dec 2020: net cash rose to US$10.0m (cash US$33.0m), revenue US$26.2m, EBITDAX US$11.0m, statutory profit US$4.7m. Two WZ6-12 infill wells now producing at 2,473 bopd gross combined, resolving that open thread. PNG sale cash of US$3.5m received.

half year report

With the PNG sale complete, Horizon announced an on-market buy-back of up to 100m shares (about 8%) and an unmarketable parcel buy-back for holdings under A$500. It targets payouts of up to 30% of free cash flow a year, at the board's discretion.

capital raising announcement

Drilling began on two infill wells at the WZ6-12 platform in Beibu Gulf, one into the WZ6-12 M1 discovery. They are expected to add about 1,900 bopd gross. Horizon's 26.95% share of cost is US$5m, with 2P reserves of 0.3 and 0.2 mmbbl net.

drilling spud

At the AGM, Horizon said it agreed in October to sell its PNG assets for US$3.5m, completing early December. The chair also said the investigation found no breach of foreign bribery law, and WZ12-8E is sanctioned for first oil early 2022. Returns to shareholders are a high priority.

asset acquisition disposition

FY20: return to net cash, with net debt cut US$28.4m, sales 1.43 mmbbl, revenue US$84m and underlying pre-tax profit US$15m. 2P reserves fell to 8.1 mmbbl from 8.8, with 1.1 mmbbl added in China from WZ12-8E and infill wells.

annual report

Chris Hodge, who replaced the suspended CEO in February, is confirmed as CEO and Managing Director on an ongoing basis. Fixed pay stays at A$621,500 a year, and he becomes eligible for the long-term incentive plan from FY2021.

director officer appointment

Text not readable. Only bullet markers were provided; the title says the investigation into the PNG transaction has concluded. The chair later said it failed to establish any breach of Australian foreign bribery laws.

regulatory community update

Half-year to December 2019: Horizon impaired its PNG assets by US$67.3m to US$5.7m, citing licence tenure issues, slow commercialisation and the media allegations, causing a US$56.5m pre-tax loss. Net debt is US$7.4m; Chris Hodge is quoted as CEO, which is a change from Michael Sheridan.

half year report

ASX temporarily paused trading in Horizon shares pending a further announcement. The text gives no reason. It coincides with the same-day Australian Financial Review article on the PRL 21 acquisition.

listing compliance notice

Responding to an AFR article on its PRL 21 interest in PNG, Horizon says it has no actual knowledge of any wrongdoing. It recounts that PRL 21 came from a 2011 settlement, including a US$10.3m purchase of a 10% interest from Elevala Energy.

regulatory community update

Jadestone Energy has agreed to buy OMV's 69% interest and operatorship of the Maari Project, where Horizon holds 26%. Completion needs partner acceptance of Jadestone as operator and New Zealand approvals, by 15 November 2020. Jadestone expects to finish in the second half of 2020.

asset acquisition disposition

WZ 6-12 M1 reached 2025 m with oil columns indicated in four sands, supported by logs and pressure data; no production test planned. Horizon holds 26.95%. Development is intended to tie into the WZ 6-12 North and South fields, subject to further evaluation.

drilling result

At 30 June 2019, 2P oil reserves are 8.8 mmbbl (from 8.9) after 2.1 mmbbl of upward revisions offset production. 2C is 26.7 mmbbl liquids and 599 bcf gas; WZ 12-8E contingent oil fell 1 mmbbl on reassessment. PRL 40 swap completed 30 April 2019.

resource reserve update

FY19 revenue up 19.4% to US$126.7m, EBITDAX US$93.0m, underlying pre-tax profit US$37.3m, statutory pre-tax profit US$48.4m (against a loss last year). Net debt US$28.0m; net cash expected by mid-2020 if production and prices hold.

annual report

FY2019 sales of 1.86m barrels and revenue of about US$126m beat the top of guidance (US$100-120m). US$35.2m of debt repaid in the June quarter; net debt about US$30m, with net cash expected by mid-calendar 2020 if oil prices hold.

production update

PNG Petroleum Minister says his department cannot approve the 2014 Elevala/Ketu (PRL 21, Horizon 30.15%) development plan and invited a new or varied plan. Horizon points to Western LNG and third-party access to ExxonMobil's pipeline as new routes.

regulatory community update

Mike Harding, a former BP executive and current chair of Lynas and Downer EDI, joins the board as an independent director. He becomes chairman when John Humphrey retires at the close of the AGM. Resolves the chair succession thread.

director officer appointment

Meeting with the PNG Petroleum Minister on 9 November failed to resolve the PDL 10 cancellation and Stanley Gas Agreement termination notices. Repsol and Horizon issued notice of intention to refer the dispute to arbitration, which they say stays any cancellation until arbitration ends or the notices are withdrawn.

regulatory community update

Signed a new US$95m reserves-based senior facility with ANZ, Westpac and ICBC, maturing July 2022, at LIBOR+2.75%. It will repay the remaining US$20m subordinated debt and US$76.2m senior debt. Security covers producing oil assets only, not PNG gas. Company says the new rate halves composite funding costs.

debt financing

At 30 June 2018, 2P oil reserves rose 1 mmbbl to 8.9 mmbbl, helped by Maari moving from 10% to 26% (+3.1 mmbbl). Oil/condensate contingent resources fell 1.9 mmbbl to 27 mmbbl; PNG contingent sales gas rose 49 PJ to 505 PJ.

resource reserve update

Two Block 22/12 infill wells (WZ 12-8W-A7H and A8H) began production with combined initial test rates of almost 3,500 bopd gross, exceeding expectations. They were drilled in 28 days against 37 budgeted; Horizon holds 26.95%.

production update

Repsol received further PNG Minister notices to cancel PDL 10 and its pipeline licence, and to terminate the Stanley Gas Agreement on 4 January 2019; participants must show cause by 25 July. Horizon calls them without merit and procedurally invalid. Escalates the earlier PDL 10 dispute.

regulatory community update

As foreshadowed at the 2017 AGM, CEO Brent Emmett (CEO since 2002) and Alan Fernie retire 30 June 2018. CFO Michael Sheridan becomes CEO and director from 1 July; Richard Beament becomes CFO. Emmett and Fernie stay on as consultants.

director officer appointment

Repsol agreed to sell its PNG interests, including about 40% of Elevala/Ketu and Stanley, to Balang (China Changcheng group), with completion expected by Q4 2018. Horizon welcomes Balang as its new partner, so its Western LNG partner is set to change.

joint venture update

Horizon completed the purchase of Todd's 16% of Maari/Manaia, lifting its interest from 10% to 26%. Completion payment was US$16.8m after adjustments, about US$13.1m net, funded from cash. Maari 2P reserves rise to 5.0 mmbbl. Resolves the pending acquisition.

farm in farm out completion

Horizon says PDL 10 (Stanley field, 30% interest, about 20% of Western LNG resource) has not been cancelled, but the PNG Minister issued a notice of intention to cancel it. Horizon and Repsol call the notice procedurally invalid; no action is to be taken pending a presentation before 1 October 2018.

regulatory community update

Horizon agreed to buy Todd's 16% of the Maari/Manaia fields in New Zealand for US$17.6m, lifting its interest from 10% to 26%. Subject to approvals; funded from cash and bank debt. Net output would rise from about 4,100 to 5,500 bopd; 2P reserves up 43% to 11.3 mmbbl.

asset acquisition disposition

At 30 June 2017, 2P oil reserves fell to 7.9 mmbbl from 9.0 mmbbl, mostly from 1.1 mmbbl produced. 2C oil and condensate rose 4.5 mmbbl to 28.9 mmbbl, mainly from the Manaia Moki field in New Zealand. 2C gas unchanged at 497 bcf.

resource reserve update

FY2017 results: revenue US$68.5m on 3% higher sales of 1.42m barrels, operating cashflow US$51.7m and a small pre-tax profit of US$4.2m versus a US$149.7m loss in FY2016. Net debt fell to US$108.5m from US$131.9m. Beibu Gulf cost recovery entitlement remaining is US$89.6m.

annual report

Horizon lifted its PRL 21 (Elevala/Tingu, Ketu) interest to 30.15% and swapped 20% of Ubuntu for 20% of Puk Puk/Douglas (PRL 40) with Kumul. Ubuntu falls to 30%. Gives about 28% of Western LNG's 2.0-2.5 tcf; cash cost confidential; PNG approvals pending.

asset acquisition disposition

Horizon prepaid US$5m of the US$50m IMC subordinated loan (LIBOR + 9%) and plans a further US$5m by year end, saving about US$1.0m a year in interest. Net debt is targeted at about US$100m by end-2017, from US$120.8m. Senior facility drawn US$88.0m after redetermination.

debt financing

Maari production restarted on 12 January 2017 after the November shutdown. A temporary clamp repair fixed the cracked strut and the water injection line was replaced. Gross cost US$25m; Horizon's share US$2.5m, about half expected from insurance. Field was making 10,000 bopd before shutdown. Resolves the shut-in.

production update

Beibu Gulf fields passed 13.9m bbl cumulative production on 10 January 2017, cutting the fixed pipeline tariff from US$4.75 to US$0.50 per barrel. Expected to add about US$0.5m a month to Horizon's cash flow. Resolves the milestone flagged in the June quarter.

production update

Operator OMV shut in the Maari field (Horizon 10%) and de-manned the platform after a 1.4m fatigue crack was found in a platform strut, with bad weather approaching. This follows the earlier mooring and water injection repairs; the planned December repairs now proceed.

production update

The remaining US$58.8m of 2011 convertible bonds were redeemed and cancelled. This removes the overhang that had weighed on the company since the bonds were issued, and closes the open refinancing thread.

debt financing

After shareholders approved the IMC financing on 6 September, all conditions on the US$50m subordinated loan were met. Proceeds plus cash were applied to the US$58.8m bonds. 300m warrants at A$0.061 are to be issued to IMC, with a prospectus. Average debt maturity is at least three years.

debt financing

FY2016 loss of US$144.5m against an US$18.3m profit, driven by US$147.5m non-cash impairments including Maari and PNG. Revenue fell 27% to US$76.0m; production rose 3%. Cash is US$16.1m; the bonds are to be redeemed using the IMC loan, subject to shareholder approval.

annual report

At 30 June 2016, 2P reserves are 9.0 mmbbl and 2C contingent resources 24.3 mmbbl of oil and condensate. Gas contingent resources rose 97 bcf to 497 bcf. Maari reserves fell 1.7 mmbbl on delayed water injection, and a non-cash Maari writedown is expected.

resource reserve update

Refinancing simplified: funding need falls to about US$50m, so IMC's subordinated loan rises from US$40m to US$50m and the planned US$20m rights issue is dropped. 300m warrants to IMC at A$0.061 stay, needing shareholder approval at an August general meeting. Cited reasons: higher oil prices and Beibu output.

debt financing

Major shareholder IMC backs a US$60m refinancing to repay the US$58.8m bonds: a US$20m rights issue and a US$40m subordinated loan at LIBOR+9% with 300m warrants to IMC. Bond maturity moves to 19 Sep 2016. Needs shareholder approval at a July EGM.

debt financing

Half-year to December 2015 swung to a US$42.0m loss from a US$7.3m profit, driven by US$38.0m of non-cash impairments. Revenue fell 22% to US$41.2m; production rose 10%. Cash is US$51.1m, net debt US$127.7m, and bonds US$58.8m.

half year report

WZ 12-10-2, discovered in 2014, has started producing via a horizontal sidetrack after appraisal; it is flowing at over 1,400 bopd after clean-up. The well intersected 512 m of oil sand. This adds near-term output and feeds 2016 combined development planning.

production update

Chairman Fraser Ainsworth, in the role since April 2002, will retire at the 20 November 2015 AGM, with John Humphrey taking over as chair. Two new non-executive directors are intended within twelve months; Humphrey is then expected to retire at or soon after the 2016 AGM.

director officer appointment

Horizon bought back and cancelled US$21.2m of its US$80m 5.5% convertible bonds due 17 June 2016, saving about US$2m of interest. This starts to address the 2016 bond repayment thread, leaving about US$58.8m outstanding.

debt financing

The Maari Growth Project is complete: the final well, MR10, flows about 2,000 bopd, taking the field to about 16,500 bopd. The operator expects capacity to reach about 20,000 bopd after optimisation and a workover campaign from August. Resolves the mid-2015 program thread.

production update

Horizon closed a US$120m revolving facility with ANZ and Westpac, used to repay the old reserves-based facility, plus a US$50m accordion for working capital or the US$80m bonds due June 2016. Maturity extends to May 2019. This resolves the refinancing thread.

debt financing

Maari MR6A started production on 21 March at about 7,800 bopd, with the field at about 14,000 bopd. This follows MR-8A's first oil in November 2014 and is expected to meet or exceed pre-drill expectations. Horizon holds 10%; MR7A is now drilling.

production update

Nama-1 reached 3,533m and found 77m of gas-saturated sandstone, thicker than predicted, but poor reservoir quality means it is not commercially productive at this location. Well plugged. Horizon's 35% is hit; the wider Nama prospect remains under evaluation.

drilling result

Nama-1 exploration well spudded 4 December in PPL 259, PNG, 20km east of Stanley, planned to 3,434m over about 36 days. Horizon drives it with 35%. If successful, it could be about Stanley's size (399 bcf gas, 13 mmbbl condensate).

drilling spud

First oil from the Maari growth program: the MR-8A well began producing 28 November at about 2,000 bopd, rising toward 4,500 bopd gross. Horizon holds 10%. About 1.1 mmbo is hedged at over US$95/bbl through mid-2016. Program due to finish mid-2015.

production update

WZ 12-10-2 found about 11m of net oil pay in the Jiaowei T42 formation, the second discovery of the two-well Beibu campaign. Horizon thinks it can be developed from the existing WZ 12-8W platform, which could extend the project's life.

drilling result

WZ 12-10-1 found oil in the top of the Jiaowei T42 formation, 4.2m net pay, with a sidetrack confirming 5.5m. It could add volume to the planned WZ 12-8E development. First of two exploration wells; the second is next.

drilling result

Stanley-5 flowed about 68 million cubic feet of gas per day with condensate, in line with pre-drill estimates. Stanley-2 and -5 together can exceed the 140 mmcfd plant capacity. Initial output of about 4,000 barrels/day of condensate is scheduled for 2H 2016. Stanley-3 spud is expected 31 August.

well test result

Whio-1 reached 2,824m and is being plugged and abandoned. It found sandstones in all objectives as expected but could not confirm commercial hydrocarbons. Effectively a dry hole for Horizon's 21%, though it was free-carried by OMV.

drilling result

Horizon terminates the Roc Merger Implementation Deed after Roc's board backed Fosun's offer. The Federal Court cancelled the 7 August scheme meeting and the 14 August hearing, ending the merger announced 29 April.

material agreement termination

Roc's board recommends a superior A$0.69 per share cash takeover from Fosun, conditional on terminating the Horizon merger deed. This is a rival bid that threatens the Horizon merger; the two sides must consult for up to 5 business days.

business combination

Horizon notes Roc's Fosun cash takeover and expects Roc to terminate the merger deed. Management says it will pursue value from its own assets, citing about US$100m cash at end of June, and sees the Fosun price as supporting Beibu's value.

business combination

Horizon confirms the Whio-1 exploration well spudded 23 July 2014 near the Maari field, expected to take 22 days. Targets 18 million barrels mean unrisked prospective resources (100%). Horizon holds 21% and is free-carried by OMV.

drilling spud

Roc shareholders voted down the resolution to amend Roc's constitution at the 11 July meeting, which Allan Gray's group had proposed. Horizon says the merger remains on track, with its scheme meeting on 7 August. Resolves the Allan Gray threat.

business combination

Federal Court approves the Scheme Booklet and orders a Horizon shareholder meeting for 7 August 2014. Directors unanimously recommend voting for the 0.724 ROC-share scheme absent a superior proposal, and Deloitte finds it in shareholders' best interests.

business combination

Horizon offers convertible bondholders about US$111.25 per US$100 face plus accrued interest, versus about US$105 early redemption on merger. Conditional on the scheme. It aims to simplify the capital structure and limit dilution. Documents due about 21 July.

debt financing

Horizon releases Deloitte's independent expert report, which concludes the Roc merger is in the best interests of Horizon shareholders. Scheme Booklet is due to be sent about 7 July if the court approves the first hearing. Resolves the open expert-opinion item.

other

Roc has told Horizon it received a confidential, non-binding approach from a third party. Horizon knows nothing further and says its board remains committed to the merger. First court hearing is set for 3 July. This raises the possibility of a competing bid.

business combination

Horizon confirms receipt of the US$78m Osaka Gas first payment (text says 12 July, apparently meaning 12 June), completing that sale. Stanley-5 spudded 15 June; Maari sidetrack spudded 11 June; Beibu Gulf passed 5m barrels. Scheme Booklet due early July.

regulatory community update

PNG granted the Stanley development and pipeline licences on 30 May, the last condition for the Osaka Gas sale. Horizon is due about US$78m within 10 business days of the US$204m total. This also meets a condition for the Roc merger.

regulatory community update

Horizon agrees an all-scrip merger of equals with Roc Oil by scheme of arrangement: 0.724 ROC shares per Horizon share, giving Horizon holders about 58% of the merged group. Horizon's board recommends it, subject to an independent expert and no superior proposal. Bondholders get a redemption right.

business combination

PNG's executive council approved the Stanley gas condensate project, and the Gas Agreement is to be signed on 17 April. Grant of the development licence, due within two weeks of signing, is the last step to completing the Osaka Gas sale, releasing about US$77m.

regulatory community update

Horizon cuts its Maari/Manaia reserves, as at 31 December 2013: 1P to 3.3 from 4.1 mmbo, 2P to 6.0 from 8.6 mmbo. It calls this a provisional, conservative lender-report basis, and says production is running about 15% above forecast. A fuller update is expected in early 2015.

resource reserve update

Maari production restarted on 12 December and all 6 wells were back on by 17 December, at about 11,600 bopd gross. This ends the shut-in from 21 July. Horizon's share of the works is about US$7m, plus about US$5m deferred cashflow, partly insured.

production update

Ketu-2 in PRL 21 flowed 35-40 mmcfd with no water, condensate 50-60 bbl/mmcf, matching Elevala and Tingu. Data feeds the FEED study; a development licence application for a combined PRL 21 development is targeted for March 2014.

flow test result

Tingu-1 flowed gas at an average 48 mmcfd with no water from a 7 m interval. Condensate yield measured about 65 barrels per million cubic feet over three hours. Horizon calls it encouraging, pending sample analysis. This backs up the 2 October discovery.

flow test result

Horizon takes a farmout option from ROC on Block 09/05, Bohai Bay, China. It pays 40% of exploration costs until it exercises the option for a 40% interest, a 2-for-1 promote on two wells. CNOOC approval is needed. This is a new China exploration position.

farm in farm out agreement

Tingu-1 found a liquids-rich gas column and gas-water contact in the Elevala Sandstone, probably connected to the Elevala field. Total depth was 3,235 m. Horizon says it could add about 100 mmboe of contingent resources. Horizon is 45%, falling to 27% after the Osaka sale. A flow test follows.

drilling result

Manaia-2 spudded on 1 September, as flagged, the first well of a year-long Kan Tan IV campaign. It targets the Moki and F-sand reservoirs in PMP 38160, with a planned depth of 2,860 m in about 30 days. Horizon holds 10%; Whio-1 follows in early 2014.

drilling spud

Maari is shut in until December for a major upgrade: the FPSO Raroa will be towed to port for a swivel replacement after a bearing fault, plus mooring-line work. Horizon's share is about US$7m of the US$70m cost and about US$5m of deferred cashflow; 2013/14 capex funding is said to be unaffected.

production update

The retail offer is complete, raising about A$21m. Retail holders took about 31.4m shares (A$10.4m) and the underwriter and sub-underwriters took up about 31.5m shares. This completes the A$53.5m raising at A$0.33; new shares trade from 3 September.

capital raising announcement

Tingu-1 spudded on 26 August in PRL 21, PNG, targeting 3,213 m over about 45 days. Success could match Elevala's 2C contingent resource of about 400 bcf gas and 22 mmbbl condensate, and would be added to the development design.

drilling spud

The five-well WZ 12-8W drilling finished, completing the 15-well Beibu Gulf program ahead of schedule and on budget. All five wells are producing on natural flow. Peak of 16-18,000 bopd gross (Horizon about 4,500) is still expected in the September quarter.

production update

Horizon launches a fully underwritten 1-for-7 entitlement offer to raise A$53.5m at A$0.33 per share, a 10.8% discount to the last close. Funds bridge work programmes until Osaka Gas payments arrive. Largest shareholder IMC (19.9%) will participate.

capital raising announcement

All ten Beibu Gulf WZ 6-12 wells are done, ahead of schedule and on budget, producing 10,000 bopd gross (Horizon 2,700 bopd). Drilling of five WZ 12-8W wells began 19 June, with plateau of 16-18,000 bopd gross expected by September.

production update

Horizon sells 40% of its PNG assets to Osaka Gas for US$204m: US$74m cash on completion, US$130m on an LNG FID, plus possible production payments. This concludes the sale process begun in Nov 2012. Completion needs approvals and the Stanley licence grant.

asset acquisition disposition

Horizon wins a 50% interest in new PNG licence PPL 430 and acquires 90% of PPLs 372 and 373, as operator. Gross PNG acreage rises from 3,900 to about 7,900 sq km, extending the exploration strategy flagged at the 2012 AGM.

asset acquisition disposition

First oil achieved at Beibu Gulf from two wells, A5H and A2, with ten wells planned on the WZ 6-12 platform. A RISC audit lifts 2P gross reserves 18% to 28.3 mmbbl. Horizon (26.95%) now expects to exceed 3,500-4,000 bopd peak.

production update

Third Beibu Gulf well, WZ6-12-A7, found 10.4 m of oil pay in the Sliver prospect; deeper Liushagang sands were water-wet with oil shows. The CEO expects a meaningful reserves increase from the three-well programme. Development drilling to start shortly.

drilling result

WZ6-12-A6 confirmed the extent of the WZ6-12 South field with 58 m of oil pay, the second success in the Beibu Gulf programme. Horizon holds 55%, reducing to 26.95% if CNOOC participates. The well will be equipped as a producer.

drilling result

RISC audit puts Maari/Manaia remaining gross reserves at 88.4 mmbo (P50) and 40.8 mmbo (P90). Horizon's 10% share is 8.8 mmbo; about 19 mmbo already produced. A 2013-14 drilling and water injection programme is planned, with the CEO expecting over 100 mmbo ultimately.

resource reserve update

RISC-audited PRL 21 contingent resources (2C) are 795 bcf gas and 40 mmbbl condensate, about double the pre-drilling estimate, plus 552 bcf prospective (Tingu, Toro). Horizon holds 45%. Supports fast-track liquids stripping and a mid-scale LNG study; this supersedes Kina's earlier estimates.

resource reserve update

WZ6-12N-1 in Beibu Gulf is an oil discovery: 59 m net oil pay in 79 m of sand, including new zones above and below the 2002-found T31C. Horizon holds 55%, falling to 26.95% if CNOOC joins. To be developed with the existing project.

drilling result

Kina's consultant estimates Ketu mean contingent resource of 375 bcf gas and 21.8 mmbbl condensate, and says PRL 21 condensate now exceeds 50 mmbbl. Horizon will start concept studies in late 2012; Tingu-1 likely in 2013. These are Kina's figures, not Horizon's.

resource reserve update

Ketu-2 flowed gas to surface within 15 minutes, cleaning up at over 20 million cubic feet a day with no formation water. Condensate expected around 60 barrels per million cubic feet, as at Elevala-1. Supports good well productivity for future development.

flow test result

Ketu-2 testing recovered liquids-rich gas with no water from the Elevala sandstone; the well will be completed as a future producer or gas injector. The CEO says gas column over 50 m and lateral extent at least 9 km should lead to a material resource upgrade.

drilling result

Financial close of the US$160m reserves-based facility achieved, with all conditions precedent to first drawdown satisfied or waived. Resolves the open financing condition on the Stanley FID noted earlier.

debt financing

Horizon signed a six-year reserves-based loan of up to US$160m with ANZ, CBA, BNP Paribas and Standard Chartered, to fund Beibu Gulf, Stanley and Maari expansion. Management says these developments are fully financed; it intends to hedge part of Maari production. Debt peak forecast about US$200m including bonds.

debt financing

Ketu-2 spudded 6 March 2012 in PRL 21, to appraise the Ketu gas/condensate accumulation 8.9 km southeast of Ketu-1. Planned depth 3,824 m, about 45 days. Follows the Elevala-2 success; Horizon holds 45% and operates.

drilling spud

Board approves final investment decision on Stanley: about US$300m capital cost, 4,000 bbl/d condensate initially, first production target end-2013 (described as aggressive). Condensate moves to reserves. Approval is conditional on debt financing, now a reserves-based facility scaled back to up to US$160m.

other

Horizon agrees to earn 25% of PPL 259 in PNG's Western Province from Eaglewood, reimbursing about US$2.5m of past costs and carrying Eaglewood to a US$6.375m cap. Horizon will operate. Extends its acreage around the Stanley and Elevala/Ketu hubs; subject to government approvals.

farm in farm out agreement

Horizon's own report: the Elevala-2 sidetrack found the gas-water contact, giving a gas column over 50 m and a structure full to spill point, high side of expectations. Resource revision (302 bcf, 19.3 mmbbl pre-drill) awaits new seismic. Well to be suspended; rig moves to Ketu-2.

drilling result

Elevala-2 reached 3,293 m and confirmed an 18 m gross gas/condensate interval, slightly thicker than Elevala-1, with no water. The Toro was dry. A sidetrack is under way to find the field's northern limit before Ketu-2.

drilling result

Elevala-2 spudded on 14 November 2011 in PRL 21, targeting the Elevala gas/condensate discovery and the deeper Toro, planned to 3,500 m. Horizon holds 45% and operates. This is the first well under the new licence.

drilling spud

Independent audit by RISC lifts Stanley mean recoverable contingent resources to 361 bcf gas and 11.4 mmbbl condensate, about 28% above pre-drill. This delivers the expected upgrade. Still contingent until FID; first production targeted for early 2014.

resource reserve update

Horizon prices an US$80m five-year convertible bond at 5.5% coupon, convertible at A$0.49 (a 29% premium to A$0.38). Proceeds fund the Petsec stake and its development costs. The conversion price can reset downward, to a floor of 80%, in 2013-15.

capital raising announcement

Horizon agrees to buy Petsec's 25% of Block 22/12 for A$38m cash plus 15m options at A$0.37. This lifts its Beibu Gulf development interest from 14.7% to 26.95% and net reserves from 6.2 to 11.3 mmbo. It will be funded by a US$75-80m convertible bond.

asset acquisition disposition

Horizon buys a further 10% of PRL 21 in PNG from Elevala Energy, lifting its interest in the licence to 45%. No price is given in the text.

asset acquisition disposition

Stanley-4 in PRL 4 reached 3,340 m, finding 35 m of net gas pay in the Toro (about 50% more than Stanley-2) and 10 m in the Kimu. The Kimu gas-water contact is deeper than expected. Preliminary results only.

drilling result

PRL 5 court action settled: Horizon gets a 70% interest in a new 5-year licence, PRL 21, reversing the earlier refusal. It will pass half to Talisman, leaving 35%. Talisman owes US$22m on administrative approvals.

joint venture update

Stanley-2 in PRL 4 flowed gas at up to 47 mmcfd from the Kimu and 30 mmcfd from the Toro, each with condensate. The CEO says each zone can beat the 70 mmcfd design rate. Stanley-4 is next, with a mid-year field investment decision targeted.

well test result

Horizon confirms the final investment decision on the Beibu Gulf fields, resolving the open FID thread. Its 14.7% share equals 3.5 million barrels of the 24 million barrel reserves. The plan still awaits formal Chinese government approval.

joint venture update

Stanley-2 found 23 m net gas pay in the Toro, in line with expectations, plus a second zone (Kimu sandstone) with 43 m net gas pay. The CEO says results meet development criteria and expects a material resource increase; no firm decision yet. Sidetrack and Stanley-4 follow.

drilling result

Horizon confirms CNOOC's internal approval of the Beibu Gulf development plan. Its share of the 24 million barrels is 3.5 million, with upside from WZ12-8 East. It plans a debt facility to fund its roughly US$45m share of capital cost.

joint venture update

Horizon's PNG subsidiary has started court proceedings against the Minister's refusal to renew PRL 5 and won an injunction restraining dealings in the PRL 5 acreage. This follows the November refusal; the legal challenge flagged then is now under way.

regulatory community update

Horizon spudded Stanley-2 in PRL 4, PNG, on 5 December 2010 as operator. It appraises a gas field found in 1999, with most likely resources of about 300 bcf gas and 9 million barrels condensate. Planned depth 3,270 m; interest 50% subject to ministerial approval.

drilling spud

The PNG Minister refused the PRL 5 extension, which the joint venture says is contrary to law and plans to challenge. Stanley-2 on PRL 4 is unaffected; the PRL 5 wells are rescheduled behind other operators' drilling. Resolves the pending renewal decision against Horizon.

regulatory community update

Full accounts for the year to 30 June 2010. The PNG gain on selling half of PRL 4 was cut by US$21.5m to US$32.6m because PNG consent for the US$22m deferred carry is not received. The Minister intends not to renew PRL 5, which the joint venture disputes.

annual report

Horizon confirms the Block 22/12 joint venture signed the CNOOC development agreement, leaving it 14.7% with CNOOC at 51%. Total development cost is about US$300m, roughly a third fixed price. Past exploration costs are recoverable from a cost recovery pool.

material agreement

Operator ROC announces the Beibu Gulf Supplemental Development Agreement was signed on 24 August, confirming CNOOC's 51% and facility sharing. Horizon holds 14.7%. Final CNOOC approval of the development plan, then investment decision, are still to come; first oil is expected 2H 2012.

material agreement

Cue reports oil production has started from the M2A (MR9) well at Maari, with flow testing continuing for several days. M2A holds P50 oil in place of 33.6 million barrels. Resolves the tie-in awaited since late 2009; Horizon holds 10%.

production update

Horizon agreed a farm-in with Todd Exploration to hold 30% of PEP 51313, next to Maari and Manaia. The 2,628 sq km permit replaces PEP 38494 and has a 5-year work program. Horizon earns in by reimbursing Todd's prior costs and funding part of its seismic costs.

farm in farm out agreement

Horizon confirms Manaia-1 completed as an oil producer, drilled to 7,943 m with 1,524 m of Mangahewa reservoir. Pre-drill oil in place of 50-60 million barrels is unchanged. It will be tied to Maari and produced intermittently; a southern and western acreage announcement is promised.

drilling result

Operator OMV says the Manaia-1 appraisal well succeeded and Manaia will go to commercial production, tied into Maari facilities. It was the longest well in New Zealand. The M2A producer is also drilled, with production expected by year end. Horizon will give a fuller update.

drilling result

Horizon passed all Maari loan completion tests; repayment was extended six months to 31 Dec 2011 and US$5m less is due in FY2010. It repaid US$9.2m, leaving US$36.6m at about 2%, non-recourse. Cash US$33.6m, net debt US$3.0m. Management says projects can be funded without new equity or debt.

debt financing

Horizon sold half its PNG gas interests to Talisman for US$60m, replacing the terminated P3GE deal. US$30m cash was received 14 Sept; US$8m and US$22m are drawn only to fund its share of capex, the latter after PNG Government approval. Each now holds 50% of PRLs 4 and 5.

asset acquisition disposition

Horizon terminated the US$55m PNG sale to P3GE after P3GE failed to pay the US$30m due 31 July 2009. It is talking to another party about selling part of its PNG interests, with an outcome expected next week.

material agreement termination

Cue reports Manaia-1 intersected the target Mangahewa sandstone at 6,324 m, on prognosis. Logging data is interpreted to contain hydrocarbons. Casing is next, then a 1,000 m horizontal section. Not yet tested. Horizon holds 10%.

drilling result

With all five Maari production wells online from 16 August, combined output averaged 39,543 bopd, above the 35,000 bopd processing capacity previously cited. Lower gas volumes allowed the higher rate. Horizon holds 10%.

production update

Partner Cue reports the Manaia-1 appraisal well began drilling on 1 August 2009, reaching 267.6 m. It is an extended-reach well from the Maari platform, planned at about 45 days. Horizon holds 10%.

drilling spud

Share purchase plan drew A$20.9m of applications but is scaled back to A$14.1m (~141m shares), taking shares to about 1,125m. Horizon cancels the Bank of Scotland rollover and will repay the whole US$19.3m corporate facility on 30 June, citing the raising and expected PNG proceeds.

capital raising announcement

Horizon agrees to sell P3 Global Energy (Thailand) 50% of PRL 4 (Stanley) and 24.82% of PRL 5 for US$55m: US$30m cash at closing on 31 July, plus US$25m in letters of credit for work spending. Subject to due diligence and PNG approvals. This is the PNG sale process.

asset acquisition disposition

Partner Cue reports the Maari joint venture approved the Manaia-1 appraisal well, due to start mid-August 2009 after Maari development drilling. Manaia has mean oil in place of 58 million barrels. Horizon holds 10%. This is the appraisal flagged at the end of the Maari programme.

drilling scheduled

Placement of 185m shares at A$0.10 raises about A$18.5m: about 120m shares now, about 65m subject to shareholder approval around 27 May. A share purchase plan up to A$10,000 per holder at A$0.10 follows. This is the planned funding step, diluting existing holders.

capital raising announcement

Both Bank of Scotland facilities (US$19.3m corporate, US$46m Maari) are fully drawn. A deal to roll half the corporate facility to 31 December 2009 awaits bank credit approval, with US$9.6m due before 30 June. Maari is producing 32,000 bopd gross and forecast to net about US$17m in 2009.

debt financing

Presentation for a proposed raising of up to A$22m (220m shares at A$0.10): A$17m placement plus an estimated A$5m share purchase plan. Funds are for part-repaying corporate debt and PNG and China pre-development costs. This is the funding step flagged since the AGM.

investor presentation

First oil flows from Maari well MR3P8 to the FPSO Raroa, with two weeks of testing and commissioning ahead and first tanker offtake expected in April. This delivers the long-delayed first production; Horizon holds 10%, with 61 mmbbl 2P Moki volumes.

production update

Horizon transfers all its Gulf of Thailand interests (five blocks) to operator Pearl Energy, with no payment either way. This removes a 2009 drilling commitment estimated at US$22–30m net and brings a US$6.8m impairment. It reverses the 2008 Thai expansion, which the CEO links to delayed Maari cash flow and low oil prices.

asset acquisition disposition

Ensco 107 rig is finally positioned beside the Maari platform after prolonged weather delays. Development drilling of 5 oil and 3 water injection wells begins, with first oil about three months later. This ends the weather wait noted in earlier reports.

drilling spud

Stanley (PNG) plan shifts to a larger gas recycling and condensate stripping project: 140 mmcfd from two wells, over 4,000 bpd condensate, over 8 mmbbl over 10 years. Stanley 2P gas is 260 bcf. Ok Tedi power supply now doubtful; a decision awaits Stanley-2, with start-up possible in 2010.

resource reserve update

Horizon farms into New Zealand permit PEP 38494 (southern Taranaki, 5,341 sq km) with operator Todd Energy, earning 25% by funding 37.5% of the first well, probably on the Matariki prospect around mid-2009. The carry is capped at an agreed amount. It extends Horizon's Maari-area position.

farm in farm out agreement

Stanley-1 in PRL 4 (now 100% Horizon) flowed up to 25 mmcfd on clean-up and a stable 9.3 mmcfd with condensate, limited by test equipment. Results are at the upper end of expectations. Stanley-2 supply well is planned for first half 2009; PRL 5 interest confirmed at 49.65%.

flow test result

Horizon agrees to buy InterOil's 43.13% of PRL 4 (Stanley) and 28.58% of PRL 5 for US$6.5m, plus a first right of refusal on InterOil's share of condensate. This would give 100% of PRL 4 and up to 49.65% of PRL 5, subject to PNG approval.

asset acquisition disposition

BOS International provides US$25m of extra debt: a US$19.25m revolving corporate facility plus a US$5.75m increase of the Maari facility to US$45.75m. Horizon says it will help fund China, PNG and Thailand/New Zealand exploration spending.

debt financing

Horizon confirms it has offered to buy Austral Pacific's 28.92% of PRL 4 (Stanley) and 10.71% of PRL 5, conditional on pre-emption rights. It says the price is well below press reports and not material. Continues its stepwise build-up of PNG interests.

asset acquisition disposition

Operator ROC confirms Wei 6-12E-1A was plugged and abandoned on 14 March and the joint venture will not drill the Wei 12-2N-1 well in this programme. This resolves the open decision; Horizon holds 30% of Block 22/12.

drilling result

Wei 6-12E-1A reached 2,510 m with only minor residual oil shows and will be plugged and abandoned, the second dry hole in the Block 22/12 programme (Horizon 30%). Operator says Wei 6-12 development plans are unaffected; the Wei 12-2N-1 well decision is under review.

drilling result

Horizon signed a farm-in with Pearl Energy (Aabar subsidiary) for 20% of three more Gulf of Thailand blocks, G1/48, G3/48 and G6/48, by paying 40% of the initial three-year seismic and drilling costs. Pearl stays operator; subject to Thai approval. Extends the existing Pearl relationship.

farm in farm out agreement

Oasis Energy Investments and Ward Ferry funds committed to exercise 10.5m options (about 26% of those outstanding) at A$0.35 before 28 February expiry, for a fee of A$0.01 per option. Shares closed at A$0.32. Well result will not be known before expiry.

security holder rights change

Wei 6-12W-1 dry hole: drilled to 2,333 m, oil shows were not commercial and the well is being plugged. The rig moves to Wei 6-12E-1, which is independent of this result. First failure of the four-well programme on Block 22/12 (Horizon 30%).

drilling result

Horizon confirms the Wei 6-12W-1 well started 1 January 2008, about two weeks late, the first of four Block 22/12 wells (30%). Target depth about 2,425 m; drilling at 560 m. 2P reserves already identified are quoted as 50-60 million barrels.

drilling spud

Horizon places 44 million shares at A$0.335, raising A$14.74m before expenses, a 3.4% discount to the five-day average price. Funds the expanded 10-well programme in China, Thailand and NZ's Manaia. 10.4m shares await placee FIRB approval.

capital raising announcement

Horizon shelves its bid for a Petroleum Contract on Lei Dong Block 24/05, after US$487,000 spent, as Chinese approvals tied to naval issues never came. CEO calls the outcome speculative. At least ten wells are expected in 2007-08, with the Thai five-well programme from March 2008.

regulatory community update

Operator ROC's appraisal report puts recoverable oil at Wei 6-12 South and Wei 6-12 at 19 MMBO most likely, 27 MMBO upside (Horizon holds 30%). Design work leads to a final investment decision in 2H 2007, with first oil possibly by 2009. This firms up the Wei discovery's size.

resource reserve update

Horizon is awarded a second Gulf of Thailand block, G11/48 (13,600 sq km), with a 25% interest alongside Pearl (50%, operator) and Tana (25%). Prospective for gas and condensate. A drilling campaign of at least four wells is planned for late 2007 or 2008, with the concession signing expected next month.

asset acquisition disposition

Horizon signs the concession agreement for Gulf of Thailand Block G10/48, holding 25% with Pearl Oil (50%, operator) and Tana (25%). Covers 18,780 sq km, with seven years to explore and the Mayura oil discovery (10-15 mmbo, deemed non-commercial earlier). Resolves the earlier award.

material agreement

Horizon launches a 1-for-8 underwritten rights issue at A$0.30, raising A$23.4m after expenses (82.1m shares), with a free option per two new shares (A$0.35, expiring 28 Feb 2008). Funds replace cash spent on Wei 6-12S appraisal and fund early development work.

capital raising announcement

ROC reports the second sidetrack at Wei 6-12S-1 (TD 2,950m) found four oil sands, 16m net pay, over 45m downdip and outside mapped closure. Middle and Lower sands were water-wet downdip, as expected. Resolves the pending sidetrack result: encouraging to as expected.

drilling result

ROC reports production tests of three zones at Wei-6-12S-1 all flowed oil, up to a combined 5,750 barrels a day (1,725, 2,575, 1,450). No water was produced in the tests. This supports the discovery (Horizon 30%); a first sidetrack starts this week.

well test result

Horizon relays ROC's results: three zones at Wei 6-12 South (Horizon 30%) all flowed oil, up to a combined 5,750 barrels a day. Sidetrack coring starts this week, and a second sidetrack is expected afterwards. Commercial viability is not yet decided.

well test result

ROC's interim analysis of Wei-6-12S-1 shows three oil columns with 95 metres of net hydrocarbon pay, including 80.5 metres of net oil, which is less than the earlier ~100 metres estimate. Two columns appear to extend beyond mapped closure. Appraisal with production tests and a sidetrack is planned.

drilling result

ROC says initial logs show Wei-6-12S-1 is a potentially significant oil discovery, with about 100 metres of net oil pay over a 500 metre interval, above pre-drill expectations. Confirms the earlier shows; the partners are considering immediate appraisal. Horizon holds 30%.

drilling result

ROC reports Wei-6-12S-1 hit a sand with strong oil shows at 1,956 metres and another with very high gas readings. The operator says it is likely to be classed a discovery, but whether it is large enough is unknown.

drilling result

AMI-1 tested at 3.1 million cubic feet a day of rich gas and 60 barrels of oil a day, and will be online in about 2 weeks. The rig was released for poor performance; drilling is hoped to restart by mid-July.

flow test result

AMI-1 logs indicate a preliminary 219 feet gross / 74 feet net pay in three zones, with oil of 34-38 degrees API in cores. The drill string then stuck and was backed off; the operator will drill around it.

drilling result

Horizon placed 84,100,168 shares at A$0.16 to raise A$13.5 million, 15% of its capital, to fund its equity share of the 10% Maari development. About 80% of its share of costs will come from BOS International debt; first production is expected March 2008.

capital raising announcement