Horizon Oil Ltd (ASX:HZN) Half-Year Results Presentation

Horizon Oil Ltd (ASX:HZN) (OTCMKTS:HZNFF) is pleased to provide the Company's latest presentation for Half-Year FY2017 Financial Results.

Operational results

HSSE

- Lost Time Injury Frequency Rate (LTIFR) of 0.0, Total Reportable Injury Frequency Rate (TRIFR) of 0.0 at 31 December 2016 over a 12 month rolling period (~25,000 manhours)

China

-Continued strong production during the period from combined WZ 6-12 and WZ 12-8W fields in the Beibu Gulf producing above budget at 1.48 mmbo (~400,000 bbl net to HZN)

- Horizon Oil's share of crude oil sales was 523,960 barrels - approximately 35% of field production (additional 124,159 barrels over net working interest share of 26.95%) due to preferential cost recovery entitlement

- Progress of Overall Development Plan for the WZ 12-8E field continues, with completion scheduled in early 2017

New Zealand

- Production during the period of ~1.49 mmbo (~150,000 bbl net to HZN).

- Production for the period was affected by the scheduled maintenance and repair shutdown period from 24 November 2016. Production recommenced on 12 January 2017; water reinjection system successfully reinstated on 29 January 2017. The Company anticipates that a material proportion of the cost of these works will be recovered from insurance.

Papua New Guinea

- Progressed development concept for a Western Province-based greenfield mid-scale LNG project, through collaboration of the PDL 10 and PRL 21 joint ventures, and the formation of a Joint Working Team (JWT). Cornerstone gas volumes for the proposed "Western LNG" project to be provided by PDL 10 (Stanley) and PRL 21 (Elevala/Ketu)

- HZN acquired strategic 50% interest and operatorship of Ubuntu gas/condensate field in PRL 28 (adjacent to PRL 21) via acquisition of Eaglewood Energy (BVI) Limited in January 2017

Outlook for the next 12 months

Corporate Outlook

- Operating cashflows expected to increase as a result of additional revenues earned from China production entitlement through cost recovery of remaining US$105 million (net to Horizon Oil)

- Continued focus on reduction of overall gearing levels

- ~50% of CY 2017 sales hedged at an average price ~US$54/bbl

- Maintenance of low capex profile and G&A over the course of FY17

Maari/Manaia, offshore New Zealand

- Further optimisation of oil production through workover program and installation of multiphase pumps

- Finalise insurance recoveries in relation to facility repairs and equipment upgrades associated with the FPSO Raroa's mooring system and water injection line

Block 22/12, offshore China

- Preparation of the Overall Development Plan for the WZ 12-8E field continues, with completion scheduled in early 2017. The audited gross 2C resources for the field (including WZ 12-10-1 and WZ 12-3-1) are 11.1 mmbo

PDL 10 (Stanley), PRL 21 (Elevala/Tingu/Ketu) and onshore Papua New Guinea

- Progress the development concept for the Western Province gas aggregation scheme, through collaboration of the PDL 10 and PRL 21 joint ventures, and the formation of a Joint Working Team

- Subsequent to the half-year period end, HZN acquired Eaglewood Energy (BVI) Limited, which holds a strategic 50% interest in the discovered Ubuntu gas and condensate field in PRL 28 (adjacent to PRL 21), in addition to some smaller exploration interests in PNG

To view the full presentation, 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).

   

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