26 Aug 2014drilling result▼ Bad
Cue repeats the Whio-1 result: total depth 2,824m, sandstones in all objectives, but commercial hydrocarbons could not be confirmed. The well is being abandoned. This is Cue's last weekly report.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Aug 2014drilling progress report● Neutral
Cue reports Whio-1 at 2,670m on 22 August, drilling through the deeper targets. Preliminary indications show reservoir-quality sandstones; hydrocarbon content awaits wireline logs.
15 Aug 2014drilling progress report▼ Bad
Cue reports Whio-1 at 1,582m on 15 August. The upper targets (Whio A, M2A, Upper Moki) are water-bearing. Drilling continues to the deeper Mangahewa target, the primary objective.
8 Aug 2014drilling progress report● Neutral
Cue reports Whio-1 at 1,235m on 8 August, with 13⅜-inch casing cemented and 12¼-inch drilling about to start. No hydrocarbon results yet.
6 Aug 2014other● Neutral
Letter to shareholders: the Roc merger is terminated and no action is needed. Horizon stays listed and holders keep their shares. It cites about US$100m cash at end of June and says it will focus on its own assets.
5 Aug 2014material agreement termination▼ BadMajor
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.
5 Aug 2014debt financing● Neutral
Horizon terminates its convertible bondholder tender offer launched 21 July. No tendered bonds will be accepted and they will be unblocked. The offer depended on the Roc scheme, which has ended.
4 Aug 2014business combination▼ BadMajor
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.
4 Aug 2014business combination▼ BadMajor
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.
1 Aug 2014drilling progress report● Neutral
Cue reported Whio-1 drilling ahead at 1,049m in 16-inch hole on 1 August, with no results yet. Horizon holds 21% of the well; Cue, not Horizon, is free-carried by operator OMV.
31 July 2014admin correction● Neutral
Horizon re-issues its quarterly report, correcting an administrative error that labelled it the third quarter rather than the fourth. The content appears the same: 350,845 barrels produced and US$78m received from Osaka Gas.
31 July 2014quarterly activities report▲ Good
June quarter: production 350,845 barrels, revenue US$32.4m. Received US$78m from Osaka Gas. Stanley-5 reached target depth with better-than-predicted reservoirs. Merger with Roc still scheduled for 29 August implementation. Mislabelled as third quarter; corrected in a later release.
24 July 2014drilling spud● Neutral
Partner Cue reported that the Whio-1 exploration well spudded on 23 July 2014, 4.5 km from the Maari platform, with a planned depth of 2,879m. Cue estimates mean unrisked prospective resources of 18 million barrels (100%). Horizon would hold 21% of any development, and Cue is free-carried by OMV.
24 July 2014drilling spud● NeutralMajor
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.
21 July 2014debt financing● Neutral
Horizon formally launches its tender and consent offer to convertible bondholders, inviting them to sell bonds for cash and approve changes to bond terms. Follows the 2 July outline. Conditional on the Roc scheme completing; no guarantee it proceeds.
11 July 2014business combination▲ GoodMajor
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.
10 July 2014other● Neutral
Roc reports a second, separate unsolicited non-binding proposal to acquire all its shares, and notified Horizon. It says Cliq Energy is not involved. No certainty of a formal offer. Adds to the possibility of a rival bid for Roc.
4 July 2014other● Neutral
Horizon lodges the full Scheme Booklet for the Roc merger, to be mailed about 7 July. Scheme meeting is 7 August 2014. A re-release of the already announced booklet; the excerpt shows only legal notices.
4 July 2014admin correction● Neutral
Deloitte clarifies that its 'implied control premium' (17-28% to Horizon holders) only reflects Roc's share price rise since the announcement. It says both companies' shareholders have enjoyed a premium. Horizon rose from A$0.34 to A$0.385; Roc from A$0.455 to A$0.56.
3 July 2014other● Neutral
Roc's release repeats Horizon's announcement that the court approved the Scheme Booklet and ordered a Horizon shareholder meeting. It repeats the 0.724 exchange ratio and adds no new information for Horizon holders.
3 July 2014business combination▲ GoodMajor
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.
2 July 2014debt financing● Neutral
Horizon releases the bondholder notice with key terms: tender price is the early redemption amount plus 575 basis points and a 50 basis point consent fee, plus accrued interest, paid after scheme implementation (expected late August). Repeats the earlier offer; the remaining detail is not shown in the excerpt.
2 July 2014debt financing● NeutralMajor
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.
2 July 2014other▲ GoodMajor
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.
1 July 2014security holder rights change● Neutral
15,000,000 Horizon options exercisable at A$0.364 expired unexercised on 30 June 2014 and have lapsed. Administrative notice.
25 June 2014business combination● NeutralMajor
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.
25 June 2014other● Neutral
Roc confirms it received an unsolicited, indicative and incomplete proposal to acquire all its shares, and notified Horizon as the merger deed requires. No certainty of a formal offer. Confirms the third-party approach Horizon disclosed the same day.
23 June 2014other● Neutral
Roc responds to its shareholders' questions on the 11 July meeting, defending its governance process. It says Horizon does not presently intend to consent to a Roc constitution change and may claim damages if it passes. A Roc document; it highlights deal risk.
18 June 2014investor presentation● Neutral
CEO's UBS conference presentation: market value A$494m at A$0.38, EBITDA about US$11m a month, 2P reserves 15.9 mmbo, exit-2014 production about 5,000 bopd net. Notes the US$78m Osaka Gas payment was received 12 June. Mostly known facts.
18 June 2014regulatory community update▲ GoodMajor
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.