Horizon Oil Limited

Horizon is pleased to advise the commencement of infill drilling operations in the Mereenie Field, Permit OL4/OL5, Northern Territory, Australia. The Ventia 101 rig has been mobilised to the Mereenie Field and the West Mereenie-29 well was spudded this morning, 5 December 2024. The drilling program is expected to run for approximately two to three months, and comprises two crestal gas production wells, West Mereenie -29 and -30 (WM-29 & WM-30). The wells are expected to increase near term gas production rates from the existing fields, with up to an additional 6TJ/d (gross) of incremental production able to be sold on a firm basis into the recently executed NT Government Gas Sales Agreement (NT GSA). The wells are targeted as nearby offsets from existing Pacoota 3 Reservoir producers. Horizon CEO, Richard Beament commented: “It is pleasing to be targeting increased gas production rates from Mereenie in support of the domestic market. The drilling of a two well infill drilling campaign so soon after completing the Mereenie acquisition, along with the signing of a long-term strategic gas supply agreement with the NT government are tremendous outcomes and assist in further unlocking the value potential we see in Mereenie. This drilling program demonstrates the continuation of our strategy of investing in production growth.” Please click on the following link for further details. https://lnkd.in/g25_YSr5

Today we announced our 2024 full year results, reporting strong cashflows from our Maari and Block 22/12 assets and a significant increase in cash reserves.   Recognising the continued strong results for the financial year, we have announced a final unfranked dividend distribution of AUD 1.5 cents per share which, together with the interim dividend distribution of AUD 1.5 cents per share paid in April, represents a return to shareholders of approximately AUD 48 million for the financial year.   Other results include:   - Completion of the Mereenie acquisition - Successful completion of a four well Block 22/12 drilling and workover program - Material progress made towards Maari life extension   Chief Executive Officer Richard Beament said that FY24 was a pivotal year for Horizon, following continued reliable high margin financial results from our legacy assets and the successful completion of the Mereenie acquisition. I congratulate my team for their dedication and hard work, working in close collaboration with our Operators to ensure that our assets continue to be operated safely and reliably.   View the Horizon 2024 full year results presentation here: https://lnkd.in/ghJHv28v

We released our Q4 FY 2024 Quarterly this morning   In this quarter and during July we:   – Paid an interim dividend of AUD1.5 cents per share totalling US$16 million (~A$24 million), paid to shareholders on 26 April 2024. Cumulative distributions paid over the past 3 years now stands in excess of A$170 million following the payment of the FY24 interim distribution (AUD 1.5 cents per share) on 26 April 2024. Further distributions under evaluation. – Substantially replenished cash reserves to US$52.6 million following payment of the distribution in April. – Realised sales revenues of US$16.5 million during the quarter, with the deferred Maari lifting in July generating additional revenue in excess of US$9 million. – Successfully completed a four-well Block 22/12 infill drilling program under budget and ahead of schedule. Drilling program met objectives, with incremental production from the program to the end of the quarter of 2,300 bopd gross (620 bopd net), restoring Block 22/12 production back above the long-term field average of 10,000 bopd (gross). Further infill drilling planning underway for a potential CY25 program. – Announced successful completion of the acquisition of a 25% non-operated participating interest in the OL4 and OL5 development licences, Northern Territory, Australia, which contain the producing Mereenie conventional oil and gas field, and subsequently entered into a six year strategic gas sales agreement (GSA) with the Northern Territory Government (NTG).   For more details review the quarterly here /https://lnkd.in/gfzYst4x

We are pleased to advise that the Mereenie joint venture has entered into a long-term strategic gas sales agreement (GSA) with the Northern Territory Government (NTG). The new GSA covers the firm supply of gas for the six-year period from 1 January 2025 through until 31 December 2030 to underpin the domestic supply of gas to the Northern Territory. Together with an amended existing gas supply agreement with Arafura Rare Earths Limited (ARU), the Mereenie joint venture has now substantially contracted the forecast Mereenie Proved Developed Producing (PDP) gas production until the end of 2030 at current market prices, subject to the ARU GSA becoming unconditional. The gas sales agreements reduce the market dependency on the Northern Gas Pipeline (NGP) with the NTG GSA also including contingent offtake arrangements for firm gas nominations in 2025 if the NGP is offline. The NTG GSA also supports the drilling of two proposed infill wells at Mereenie with contingent offtake arrangements for firm gas nominations following successful drilling. Our CEO Richard Beament commented: We are very pleased to have secured a long-term strategic offtake agreement to supply gas to the NT government. Such an agreement reinforces the vital importance of the Mereenie gas field (the largest producing onshore gas field in the Northern Territory) to underpin domestic gas supply to Territorians. This is a strategic milestone for the joint venture with all Mereenie Proved Developed Producing gas production contracted through to the end of the decade at current market prices. Importantly, the NT GSA, in conjunction with the amended ARU GSA reduce the market dependency on the NGP and provide support for further investment at Mereenie with infill drilling planning well advanced. The new GSAs underscore the strategic merit of Horizon’s recent acquisition of an interest in the Mereenie field with the new GSAs expected to enhance project cashflows out to the end of the decade. For more details review the market release here:  https://lnkd.in/gPbEhFJk

Please follow the link below to access a presentation by Richard Beament, recorded at yesterday’s MST Financial Oil & Gas webinar. https://lnkd.in/g5aJb6j8

We are delighted to advise that our acquisition of a 25% non-operated interest in the producing Mereenie oil and gas field completed yesterday. The acquisition adds a third production asset to our portfolio - complementing, diversifying and expanding our production base, and plays to our strengths as a non-operator, being also right sized, largely self-funded and with material upside. Based on current production rates at Mereenie, the acquisition will materially increase our net daily production by approximately 1,100 boepd, and more than doubled the Company’s 2P reserves position at 30 June 2023. The asset provides us with material exposure to both the Northern Territory and East Coast gas markets, both of which are forecast to have significant supply side opportunities. With domestic gas recognised as key to the energy transition, Mereenie has a strong part to play in providing essential energy to miners and other industrial users to support the energy transition. The acquisition is expected to meaningfully increase net operating cash flow over the next 5+ years and provide a production base beyond the expiry of our existing assets. We look forward to working with the Mereenie JV participants to further unlock the remaining value in the asset, with planning already underway for a potential two well development drilling program later this calendar year (subject to JV and regulatory approvals, and rig availability).

We released our Q3 FY 2024 Quarterly this morning.   In this quarter, we:   - Announced an interim dividend of AUD1.5 cents per share totalling US$16 million (~A$24 million), paid to shareholders on 26 April 2024. - Increased net cash by US$7.7 million - Realised sales revenue of US28.9million, aided by a record lifting in Maari which attracted a substantial premium - Announced that we had executed a sale and purchase agreement to acquire a 25% non-operated participating interest in the OL4 and OL5 development licences, Northern Territory, Australia, which contain the producing Mereenie conventional oil and gas field. Looking ahead: - In April we commenced a four well drilling program in Block 22/12, China. All four wells will recover incremental oil from existing fields and are targeted as nearby offsets from existing producers. The four well program is forecast to recover an incremental 1.3 mmbbl gross (Horizon net 0.35 mmbbl) to the end of the contract period, with the total incremental oil rate from the four wells estimated at 2,400 bopd gross (Horizon net 600 bopd). - The Mereenie transaction remains on track for completion by the end of the financial year. For more details review the quarterly here:  https://lnkd.in/gzSKW9vP

Horizon is pleased to advise of the commencement of 2024 drilling operations in Block 22/12. The four well program is forecast to recover an incremental 1.3 mmbbl gross (Horizon net 0.35 mmbbl) to the end of the contract period, with the total incremental oil rate from the four wells estimated at 2,400 bopd gross (Horizon net 600 bopd). Horizon’s share of the forecast drilling costs will be funded from existing cash reserves.   

Lifted Horizon’s calculated valuation from AUD 19 cents to AUD 21 cents following the acquisition

Today we released our HY24 results. Highlights:   Capital management • The Company announces an interim unfranked (conduit foreign income) dividend distribution of AUD 1.5 cents per share, a return to shareholders of approximately A$24 million to be paid in April 2024.   Strong cashflow replenished cash balance • Production and sales volumes for the half-year were 763,145 bbls and 757,784 bbls, with 2023 calendar year production and sales volumes significantly higher than the prior calendar year at 1,747,129 bbls and 1,731,571 bbls. • Revenue for the half-year was US$66.1 million (inclusive of hedge settlements) at a net realised oil price of US$87.27/bbl, with 2023 calendar year revenue of over US$142 million. • EBITDAX of US$44.0 million for the half year, with cash operating costs of ~US$21.50/bbl, inclusive of workover costs. • Statutory profit before tax for the half year of US$26.6 million, an increase of 9% compared to the prior comparative period with disciplined spending and cost recovery revenues more than offsetting the impact of the decline in production volume. • Cash and net cash at 31 December 2023 was US$45.1 million, with a further US$10.5 million pertaining to the Maari December lifting received shortly after the period end.   Acquisition of 25% non-operated interest in producing Mereenie oil and gas field • Subsequent to the period end, the Company announced it has executed a sale and purchase agreement to acquire a 25% non-operated participating interest in the OL4 and OL5 development licences, Northern Territory, Australia, which contain the producing Mereenie conventional oil and gas field. Transaction remains subject to customary completion conditions and regulatory approvals. • The upfront cash consideration for the transaction is ~US$27.6 million which is to be fully debt funded from a new 5- year debt facility from Macquarie Bank. Consideration also includes deferred and contingent payments of up to US$5.8 million payable over the next 24 months. • Acquisition to add 6.4 mmboe of 2P reserves as at the transaction effective date of 1 April 2023.   Full details on our updated website - www.horizonoil.com.au   • Half yearly report and accounts – https://lnkd.in/dzN4TXei • Half yearly results presentation – https://lnkd.in/dTbvyips • Distribution – https://lnkd.in/db5h8Ux8