Horizon Oil Ltd (ASX:HZN) (OTCMKTS:HZNFF) is pleased to provide the Company's half-year report for the period to 31 December 2016.

HIGHLIGHTS

- Net cash from operations of US$19.7 million, EBITDAX of US$18.4 million, gross profit of US$8.8 million and US$18.3 million cash on hand.

- Operating costs 27% lower at US$22.8 million, driven by cost savings in response to lower oil prices.

- Net operating cashflow of US$53.5 million in CY 2016 and forecast at US$50-US$60 million for CY 2017-2022, with modest capex profile.

- Net debt reduced to US$120.8 million with continued reduction planned in CY 2017.

- Cost recovery production entitlement in Beibu Gulf, offshore China, maintains net field production at ~3,000 bopd over CY 2017-2020, with remaining cost recovery entitlement of US$105 million to be received in that period.

- Current net production from Beibu Gulf and Maari, ~4,000 bopd, including cost recovery oil entitlement.

Commenting on the result, Horizon Oil's Chief Executive Officer, Brent Emmett, stated:

"Horizon Oil performed well in the period, with the strong cashflows from our oil projects in China and New Zealand forecast to increase in calendar year 2017. The outstanding US$58.8 million in convertible bonds was successfully refinanced and net debt reduced. The Company's free cash flow break-even of US$33/bbl in 2017 has Horizon Oil well positioned to capture the benefits of stronger oil prices, further materially reduce its debt and, together with hedging, mitigate against oil price volatility.''

To view the full report, please visit:
http://abnnewswire.net/lnk/DQ4E5442

To view the presentation for Half-Year FY2017 Financial Results, please visit:
http://abnnewswire.net/lnk/9701O115


About Horizon Oil Ltd

Horizon Oil Limited (ASX:HZN) (OTCMKTS:HZNFF) is an ASX-listed oil and gas exploration, development and production company, incorporated and domiciled in Australia.

Horizon Oil portfolio is comprised of petroleum interests in China, New Zealand and Papua New Guinea.

The producing assets in the Beibu Gulf of China (Block 22/12) and the Maari/Manaia Fields offshore New Zealand (PMP 38160) generate stable and significant cash flow which will continue at current levels into the next decade.

Horizon Oil also has a substantial acreage holding of some 8,000 sq km in the forelands of Western Province of PNG, which includes the Stanley field (PDL 10), the Elevala/Tingu and Ketu fields (PRL 21) and the Ubuntu field (PRL 28). These fields contain material, appraised and independently certified gas-condensate resources and the company is currently working with its joint venture partners to aggregate these resources for a planned 1.5 million tonnes per annum LNG scheme, called Western LNG (WLNG).

   

Contact

Mr Brent Emmett
Chief Executive Officer
T: +61-2-9332-5000
F: +61-2-9332-5050
Email: exploration@horizonoil.com.au
www.horizonoil.com.au



Link: Half Year Accounts


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