Past year: ▲ 5%(19.5c – 28.0c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
5 Nov 2012drilling result▲ GoodMajor
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.
31 Oct 2012quarterly activities report● Neutral
September quarter: Maari/Manaia sales 92,445 barrels (US$10.5m), production down about 2% on pump failures. Cash US$11.1m, US$37.4m drawn on the bank facility. Beibu facilities 85% complete; total reserves and resources about 50% higher than last year.
19 Oct 2012agm notice● Neutral
Release of the 2012 annual report and notice of AGM, to be held 22 November 2012. Cover letter and documents repeat already-reported results; no new information in the extract.
18 Oct 2012resource reserve update▲ GoodMajor
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.
16 Oct 2012drilling spud● Neutral
ROC began drilling the WZ6-12-A6 well on the WZ6-12 South field at 20:00 on 15 October, in 29 m of water, to a planned 2,914 m MD. Horizon holds 55% through two subsidiaries in the exploration programme.
16 Oct 2012resource reserve update▲ Good
Kina, a 15% PRL 21 partner, says Horizon's audited resource figures suggest final numbers will exceed its earlier estimate of 916 bcf and 53.8 mmbbl. If Tingu-1 succeeds, Kina sees over 1,200 bcf and 75 mmbbl. Largely repeats Horizon's update.
12 Oct 2012resource reserve update▲ GoodMajor
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.
11 Oct 2012security holder rights change● Neutral
1,518,000 unlisted employee options at A$0.35 lapsed on 10 October. Shares on issue unchanged at about 1,130.8m, with 400 convertible bonds still outstanding. Administrative capital structure update.
10 Oct 2012drilling result▲ GoodMajor
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.
2 Oct 2012drilling spud● Neutral
Operator ROC began the Beibu Gulf exploration programme on 1 October, spudding WZ6-12N-1 to about 1,600 m. Up to four wells are planned, with development drilling to follow subject to NDRC approval, expected shortly. Horizon holds 55% in exploration wells (Horizon and Petsec subsidiaries).
27 Sept 2012annual report● Neutral
Statutory accounts for the year to June 2012, repeating results already reported. Confirms Stanley FID, PDL application lodged August 2012, about US$300m cost and first production target of first half 2014 (earlier context said end-2013). US$33m drawn on the US$160m facility.
31 Aug 2012annual report● Neutral
Full year to June 2012: revenue US$50.4m, profit after tax US$7.7m (US$34.9m prior year, which included asset sale gains). Cash US$19.3m, US$33m drawn on the debt facility. Stanley FID confirmed by partners, licence application lodged August.
31 Aug 2012investor presentation● Neutral
Full-year results presentation repeating reported figures: revenue US$50.4m, profit after tax US$7.7m, cash US$19.3m. Outlook covers Stanley licence, Beibu Gulf first oil around end 2012/early 2013, and PRL 21 engineering study. Nothing new.
27 Aug 2012resource reserve update▲ Good
Kina said the PRL 21 operator deemed the previously published liquids contingent resource economic for a liquids stripping operation. Kina's Pmean figures were 54.1 MMBO of liquids and 932 bcf of gas, and it saw about 1 tcf of gas and a possible 1 mtpa LNG option, with first liquids targeted for Q1 2015.
31 July 2012quarterly activities report▲ Good
June quarter: Maari/Manaia sales 117,049 barrels (US$13.5m), production up 12% on better pump run-time. Beibu Gulf facilities 65% built; NDRC approval still pending. Stanley now confirmed by all partners. Cash US$19.4m with US$33.0m drawn on the bank facility.
27 June 2012resource reserve update▲ GoodMajor
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.
4 May 2012flow test result▲ GoodMajor
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.
4 May 2012flow test result▲ Good
Kina repeats Ketu-2 flow test: over 20 million cubic feet a day, no water. Its managing director says moveable gas in a zone expected to be water-bearing is well above pre-drill expectations.
30 Apr 2012quarterly activities report● Neutral
March quarter: Maari/Manaia sales 73,289 barrels (US$8.8m), below forecast due to well outages and a week-long shutdown. Cash US$21.0m, no bank debt. Beibu Gulf facilities about 50% built; Stanley licence application targeted for July; Ketu-2 confirmed gas extension; 3D seismic completed.
23 Apr 2012drilling result▲ GoodMajor
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.
23 Apr 2012drilling result▲ Good
Kina repeats the Ketu-2 result: liquids-rich gas, no water, well to be completed and flow tested. Kina's managing director says gas was confirmed to the base of the interval drilled, which bodes well for commerciality.
20 Apr 2012drilling progress report▲ Good
Ketu-2 reached 3,787 m in basement. Logging data indicate a gas zone in the Elevala sandstone, in line with prediction, and a 27 m core was cut. Appears to confirm the gas accumulation extends about 9 km from Ketu-1; confirmation awaits further logs.
20 Apr 2012drilling progress report▲ Good
Kina repeats Horizon's Ketu-2 report: total depth 3,787 m, gas zone indicated in the Elevala sandstone, pending logs. Kina calls results encouraging and expects to comment on resource size later.
11 Apr 2012debt financing▲ GoodMajor
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.
3 Apr 2012drilling progress report● Neutral
Partner Kina repeats Horizon's Ketu-2 progress: 2,550 m, casing set, Elevala sandstone expected 8-10 April. Nothing new beyond Horizon's report.
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.
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.
