31 Jan 2008security holder rights change● Neutral
Required notice to option holders: listed options (A$0.35) expire 28 February 2008. Shares closed at A$0.295 on 29 January, below the exercise price. Exercise is not underwritten.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 Jan 2008quarterly activities report● Neutral
December quarter report: Maari (Horizon 10%) 61% complete, first oil still mid-August 2008; Wei 6-12W-1 confirmed dry; 44 km PRL 4 seismic and 3,145 km Thai 2D seismic completed; Wei 6-12 development decision targeted mid-2008.
29 Jan 2008drilling result▼ BadMajor
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%).
29 Jan 2008drilling result▼ Bad
Partner Petsec repeats that Wei 6-12W-1 found no commercial hydrocarbons and was plugged. Nothing new for Horizon.
29 Jan 2008drilling result▼ Bad
Operator ROC confirms Wei 6-12W-1 found no hydrocarbons and is abandoned; the rig moves to Wei 6-12E-1. Horizon's own release described oil shows as non-commercial. Duplicates Horizon's news.
29 Jan 2008drilling result▼ Bad
Partner FAR repeats the operator's report that Wei 6-12W-1 found no hydrocarbons; the rest covers FAR's own Louisiana well. Nothing new for Horizon.
23 Jan 2008drilling progress report● Neutral
Operator reports Wei 6-12W-1 has set casing at 1,837 m and is drilling at 2,106 m toward a target depth of 2,425 m. No result yet.
22 Jan 2008capital raising announcement● Neutral
FIRB approval received, so the remaining 10.4 million shares of the December 2007 placement (44 million at A$0.335) were issued. Completes the placement.
16 Jan 2008drilling progress report● Neutral
Operator reports Wei 6-12W-1 drilling at 1,684 m, planning to reach 1,860 m to set the next casing. Routine progress, no result.
9 Jan 2008drilling progress report● Neutral
Partner FAR repeats the operator's Wei 6-12W-1 casing update; the rest concerns FAR's own Louisiana well, unrelated to Horizon. No result.
9 Jan 2008drilling progress report● Neutral
Partner Petsec repeats the operator's update: casing run to 800 m on Wei 6-12W-1, preparing blowout preventer testing. No result.
9 Jan 2008drilling progress report● Neutral
Operator ROC reports Wei 6-12W-1 is preparing to run casing to 800 m. Routine progress, no result.
2 Jan 2008drilling spud● Neutral
Joint venture partner Petsec repeats the operator's announcement that Wei 6-12W-1 has spudded in Block 22/12. No new information for Horizon.
2 Jan 2008drilling spud● Neutral
Joint venture partner FAR repeats the operator's announcement that Wei 6-12W-1 has spudded in Block 22/12. No new information for Horizon.
2 Jan 2008drilling spud● NeutralMajor
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.
2 Jan 2008drilling spud● Neutral
Operator ROC announces Wei 6-12W-1 spudded 1 January 2008 in Block 22/12 (Horizon 30%), about two weeks late after rig equipment faults. Targets about 2,425 m. Programme expected to finish by end of March quarter. Duplicates Horizon's own release.
11 Dec 2007admin correction● Neutral
Standard secondary sale notice under the Corporations Act for the December placement shares. Carries no new information about the business.
4 Dec 2007capital raising announcement● NeutralMajor
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.
What it means for a shareholder
44.0m new shares at A$0.335 to raise about A$14.7m. That's 5.6% dilution: every existing holder's slice gets 5.6% smaller. If you held A$1,000 of shares (2,985 at the issue price), your slice goes from 0.000404% to 0.000382% of the company. To keep it you'd need 178 more shares - about A$60 at the issue price.
Create a free account to see this worked out for your own holding.
30 Nov 2007drilling scheduled▲ Good
Four-well Block 22/12 exploration programme (Horizon 30%) to start mid-December 2007 with Wei 6-12W-1. Prospects hold over 200 million barrels of oil-in-place; ODP targeted for end February 2008. Continues the November rig plan.
21 Nov 2007agm notice● Neutral
Chairman's AGM address: no exploration wells drilled and no oil produced yet, but a 10-well programme is firming up. Cash was about US$15m at 30 September 2007; Maari is expected to bring about US$8m a month pre-tax at current prices. Share price about A$0.35.
31 Oct 2007quarterly activities report● Neutral
September-quarter report: Maari 59% complete, but first oil now estimated August 2008 (previously July steady-state) as the rig is tied up first on another project. Block 22/12 rig due December for a four-well programme; Thai G10/48 seismic complete, G11/48 84% done.
22 Oct 2007annual report● Neutral
Lodges the 2007 annual report and AGM notice, with the meeting on 21 November 2007. Maari is 55% complete, first oil Q3 2008, Horizon's share of capex US$45.7m versus US$36.5m at approval. Lei Dong dropped; agreement with CNOOC on Wei 6-12S expected by end 2007.
28 Sept 2007annual report● Neutral
Lodges the full 2007 annual financial and directors' reports for the year to 30 June 2007. Covers known items: rights issue, Maari loan, adoption of successful efforts accounting with no adjustment to results, and de Nys appointed 14 June 2007.
26 Sept 2007admin correction● Neutral
Corrects the earlier outlook release, which wrongly stated Horizon's interests in Blocks G10/48 and G11/48. The correct interest is 25% in each.
26 Sept 2007regulatory community update▼ BadMajor
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.
28 Aug 2007annual report● Neutral
Preliminary results for the year to 30 June 2007: loss of US$1.9m, in line with last year, and cash of US$19.8m (up from US$11.3m). Maari 51% complete, steady production still targeted July 2008. Thai seismic recording began 7 August 2007.
31 July 2007quarterly activities report▼ Bad
June-quarter report: Maari 49% complete; rig now expected April 2008, so steady-state production is set for July 2008 (previously April). Horizon's capex to completion rises to US$45.7m, covered by the cost overrun facility. Rig chosen for Block 22/12 drilling from November 2007.
22 June 2007other● Neutral
Maari partner Cue Energy announces a US$20m project finance facility with BOS International for its 5% share. Says first oil is expected in Q3 2008. Nothing new for Horizon's own interest (10%) or funding.
15 June 2007admin correction● Neutral
Corrects the de Nys appointment date to 14 June 2007 (the earlier release said 14 July). Re-attaches the otherwise unchanged announcement.
15 June 2007director officer appointment▲ Good
Gerrit de Nys joins the board as non-executive director. A former IMC Group executive, he was responsible for IMC's investments including Horizon; IMC's subsidiary holds 13.8%. The chair cites his shipping and oilfield construction experience for bringing discoveries into development.