17 Feb 2009other▼ Bad
Guidance that the half-year to 31 December 2008 will show a loss of about US$10m. Exploration write-offs and impairments of US$7.4–7.8m, mainly from the Thai exit, are the main cause. Finance costs are about US$0.8m.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
13 Feb 2009asset acquisition disposition● NeutralMajor
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.
23 Jan 2009drilling progress report▲ Good
Maari: first production well MR3P8 is completed with a 1,518 m horizontal section in clean oil-bearing sandstone. It will be hooked up, with production to the FPSO expected late February. The rig moves to the second well.
29 Dec 2008drilling progress report● Neutral
Maari: surface holes for the first three production wells finished on 24 December. The first well, MR3P8, was drilling at 1,532 m. First oil is still expected around mid-February 2009.
5 Dec 2008drilling progress report● Neutral
Maari: 24-inch conductors completed in nine slots ahead of schedule. The rig is preparing to batch-drill the first three production wells. First oil is still expected around mid-February 2009.
27 Nov 2008other▼ Bad
AGM chairman's address acknowledges the financial crisis, oil near US$50–55 and Maari cash delayed to Q2 2009. Maari cash flow is expected to reach about US$4.5m a month by August 2009, down from the earlier US$8m a month at US$80 oil. Financing plans run to Q3 2009.
27 Nov 2008other● Neutral
Board withdraws AGM resolutions on a higher director fee pool and options for a non-executive and two executive directors. It cites the falling share price, falling oil price and Maari cash inflows delayed until early 2009.
24 Nov 2008drilling progress report▲ Good
Maari: ten 30-inch stove-pipes installed ahead of schedule; 24-inch conductors next, then the first three production wells. First oil is still expected around mid-February 2009. Progress is as planned.
11 Nov 2008joint venture update● Neutral
Maari partner Cue Energy repeats the rig positioning news and says first oil is expected around mid-February 2009, once the first development well is completed. Horizon holds 10%. Duplicates Horizon's own release.
11 Nov 2008drilling spud▲ GoodMajor
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.
27 Oct 2008annual report● Neutral
2008 Annual Report and notice of AGM on 27 November 2008. The report notes Maari first oil is delayed by weather and Horizon's share of Maari cost to completion is up 44% to US$52.4m. Repeats known events.
27 Oct 2008resource reserve update▲ GoodMajor
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.
3 Sept 2008investor presentation● Neutral
CEO presentation at the Good Oil Conference repeating known assets. It gives cash of US$10.5m and shows Maari first production slipping to November 2008 (previously October). Market capitalisation is about A$268m. No new announcement.
3 Sept 2008farm in farm out agreement▲ GoodMajor
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.
28 Aug 2008annual report● Neutral
Preliminary results for year to 30 June 2008: cash US$19.6m, Maari 80% complete with first production scheduled October 2008, and PRL 4 now 100%. Block 22/12 investment decision is due September 2008. Thai first-phase drilling begins November. Financial detail truncated.
28 Aug 2008annual report● Neutral
Full annual financial report for the year to 30 June 2008, restating the PNG purchases (US$10.0m total, 100% of PRL 4 and 49.647% of PRL 5), the Thai farm-in, the A$14.2m placement, option exercises and the extra US$25m BOSI debt facilities. Repeats known events.
18 July 2008flow test result▲ GoodMajor
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%.
25 June 2008director officer appointment● Neutral
Kelvin Bramley appointed Assistant Company Secretary; Michael Sheridan remains Company Secretary. Administrative.
19 June 2008asset acquisition disposition▲ GoodMajor
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.
27 May 2008investor presentation● Neutral
CEO conference presentation repeating known asset status, with cash of US$13m and the US$19m BOSI revolving facility. Maari first production Q3 2008; PRL 4 interest 56.87%. Market capitalisation about A$346m. No new announcement.
22 May 2008debt financing▲ GoodMajor
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.
1 Apr 2008investor presentation● Neutral
CEO presentation at a Brisbane conference restating known assets and plans: Maari first production Q3 2008, Wei 6-12S first production early 2010, and a 15-well drilling programme. Quotes 14–16 mmbo 2P reserves. Market capitalisation about A$203m. No new announcement.
28 Mar 2008asset acquisition disposition▲ GoodMajor
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.
19 Mar 2008drilling result▼ BadMajor
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.
19 Mar 2008drilling result● Neutral
Partner Petsec repeats the operator's news that Wei 12-2N-1 will not be drilled and Wei 6-12E-1A is abandoned. Nothing new for Horizon.
19 Mar 2008drilling result● Neutral
Partner FAR repeats the operator's news that Wei 12-2N-1 will not be drilled and Wei 6-12E-1A is abandoned. The rest covers FAR's own Louisiana Schwing #2 well. Nothing new for Horizon.
12 Mar 2008drilling result▼ Bad
CEO calls the dry Wei 6-12E-1A a disappointing result but says Wei 6-12 development is unaffected, with a final investment decision targeted mid-2008. The third well, Wei 12-2N-1, is likely to be dropped, citing rig equipment failures; the exploration phase ends September 2008.
11 Mar 2008drilling result▼ Bad
Partner Petsec repeats the operator's report that Wei 6-12E-1A found only minor residual oil shows and will be abandoned. Nothing new for Horizon.
11 Mar 2008drilling result▼ BadMajor
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.
11 Mar 2008drilling result▼ Bad
Partner FAR repeats the operator's report that Wei 6-12E-1A had minor residual oil shows and will be abandoned; the rest covers FAR's own Louisiana well. Nothing new for Horizon.