3 Apr 2012drilling progress report● Neutral
Ketu-2 in PRL 21 has reached 2,550 m and set casing; the target Elevala sandstone is expected around 8-10 April. Planned depth is 3,824 m. No result yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
26 Mar 2012debt financing▲ GoodMajor
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.
20 Mar 2012resource reserve update▲ Good
Partner Kina's consultant puts Elevala mean recoverable contingent resources at 480 bcf gas and 28 mmbbl condensate, against Horizon's pre-drill 302 bcf and 19.3 mmbbl. This is Kina's estimate, not Horizon's certified figure.
16 Mar 2012joint venture update● Neutral
Horizon sets out the Mitsubishi deal terms: Mitsubishi may take 10% of PRL 4 (Stanley) and 7.5% of PRL 21 from Talisman. Horizon stays at 50% and 45%, with Talisman falling to 40% and 32.5%. Subject to approvals.
12 Mar 2012joint venture update● Neutral
Kina confirms Mitsubishi subsidiary Diamond Gas will take 7.5% of PRL 21 from Talisman, at US$2.951m per percent. Talisman falls to 32.5%; Horizon stays at 45%. Pending government approval.
6 Mar 2012drilling spud● Neutral
Partner Kina reports the same Ketu-2 spud on 6 March 2012. Notes Kina's 15% share and its aim of defining the gas-water contact. Nothing new beyond Horizon's announcement.
6 Mar 2012drilling spud● NeutralMajor
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.
28 Feb 2012investor presentation● Neutral
Half-year results presentation repeating reported figures: profit US$8.5m, EBITDAX US$21.6m, cash US$34.8m. Outlook covers the US$160m debt facility, Stanley licence application and Ketu appraisal. Nothing new.
28 Feb 2012half year report▲ Good
Half-year to December 2011: revenue US$28.0m, profit after tax US$8.5m (loss of US$1.6m a year earlier). Cash US$34.8m versus US$64.6m in June. Maari output still below expectations; US$160m debt facility close expected Q1 2012. Ketu-2 expected to spud in March.
27 Feb 2012regulatory community update▲ Good
Partner Roc Oil reported that China's State Oceanic Administration approved the Beibu Gulf environmental impact assessment, allowing offshore work to start. Final NDRC project sanction is still needed, and the operator still expects first oil by end-2012.
27 Feb 2012regulatory community update▲ Good
Horizon notes China's SOA approved the Beibu Gulf environmental assessment, where it holds 26.95% through subsidiaries, and attaches ROC's release. Final NDRC project sanction is still required per the attachment.
23 Feb 2012farm in farm out agreement● Neutral
Forwards Talisman's news that Mitsubishi will enter nine of its PNG licences, including PRL 4 and PRL 21, in a deal valued at about US$280m. Horizon's own interests are not stated as changing here; details to follow.
27 Jan 2012other▲ GoodMajor
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.
24 Jan 2012farm in farm out agreement▲ GoodMajor
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.
20 Jan 2012drilling result▲ Good
Partner Kina's report of the Elevala-2 sidetrack: it reached 3,630 m and found the gas-water contact, giving a gas column over 50 m and an Elevala structure full to spill point. Result is high side of expectations; resources (302 bcf, 19.3 mmbbl pre-drill) await new seismic.
20 Jan 2012drilling result▲ GoodMajor
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.
4 Jan 2012drilling progress report● Neutral
Partner Kina Petroleum (15% of PRL 21) re-issues the 4 January Elevala-2 sidetrack report, with the same results and plans. Nothing new.
4 Jan 2012drilling result▲ GoodMajor
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.
19 Dec 2011drilling progress report▲ Good
Elevala-2 has confirmed a gas/condensate zone in the Elevala sandstone, about 15 m thick, encountered about 20 m down-dip of Elevala-1 with no water seen. Drilling continues toward the Toro. A positive early sign, but pay and volumes are not yet confirmed.
9 Dec 2011drilling progress report● Neutral
Elevala-2 is at 2,426 m, setting casing, with the first appraisal target expected around 18-20 December. Ketu-2 is to follow. No new results.
18 Nov 2011investor presentation● Neutral
CEO AGM presentation. It restates the assets and flags a planned 270 sq km Maari 3D survey and a three-well 2012/13 campaign. It also notes FPSO Raroa buyout work and Beibu Gulf first oil targeted for December 2012. Largely known.
15 Nov 2011drilling spud● NeutralMajor
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.
14 Nov 2011resource reserve update▲ GoodMajor
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.
1 Sept 2011security holder rights change● Neutral
20.11m employee options at A$0.33 lapsed unexercised on 31 August 2011. Share count unchanged at about 1,130.8m, with 400 convertible bonds still outstanding. Administrative capital-structure update.
25 Aug 2011investor presentation● Neutral
FY2011 results presentation repeating the profit (US$34.9m after tax), cash (US$64.6m) and operational highlights. Outlook: finalise Stanley FEED and licence, start Elevala/Ketu drilling, and complete the WZ12-8E feasibility study. Mostly known facts.
25 Aug 2011annual report▲ Good
FY2011 profit before tax was US$48.5m, including a US$22m gain on the final Talisman PNG payment. Cash was US$64.6m, Maari debt was fully repaid, and the US$80m convertible bond was issued. Net profit after tax was US$34.9m, against US$52.3m the year before.
25 Aug 2011annual report● Neutral
Full statutory accounts for the year to 30 June 2011. They repeat the results announcement: the A$38m plus 15m options Petsec purchase, the US$80m 5.5% bond (listed in Singapore), and Maari debt repaid. Nothing new.
22 Aug 2011director officer appointment● Neutral
Richard Beament replaces Kelvin Bramley as Assistant Company Secretary. Administrative change only.
16 June 2011investor presentation● Neutral
UBS conference presentation. Restates the profile: 2P reserves 16.8 mmbo, net production about 1,500 bopd, market value A$384m, cash US$24.7m at 31 March. Nothing new beyond the recent acquisition and bond.
3 June 2011capital raising announcement● NeutralMajor
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.