How Does Horizon Company Work?

The company engages in exploration, appraisal, development, and production of hydrocarbon assets. Its main products are crude oil and natural gas, with a strong focus on the Asia-Pacific region.

Operations are centered on joint venture interests in significant producing assets. These include Block 22/12 offshore China, the Maari/Manaia fields offshore New Zealand, and the Mereenie fields in Australia.

Sophisticated technology is employed for drilling and production, supported by robust logistics and supply chain management. Collaboration with major partners is integral to these processes.

The company's value proposition lies in its long-term partnerships and disciplined capital management. This translates into reliable energy supply for customers and market differentiation through low-cost assets.

A significant milestone was the acquisition of a 25% interest in the Mereenie oil and gas field in June 2024. This transaction effectively doubled Horizon's net Proved + Probable (2P) Reserves to 9.9 MMboe by June 30, 2024, with gas reserves increasing to 32 PJ (5.5 MMboe). This strategic move is anticipated to substantially increase net operating cash flow over the next five years.

Horizon commenced an infill drilling operation in China in April 2025, targeting an additional 400,000 barrels of oil gross production. Furthermore, a sale and purchase agreement was signed in March 2025 to acquire interests in gas fields in Thailand, diversifying its asset portfolio and enhancing cash flow generation.

The company's competitive edge is built on long-standing joint venture partnerships in mature, low-cost fields in China and New Zealand. Horizon Oil demonstrates a disciplined approach to capital management, having returned over 70% of its free cash flow to shareholders in the past two years.

Horizon Company consistently generates strong cash flows from its producing assets, enabling strategic investments in new opportunities. This adaptability, coupled with a focus on maximizing production and reducing costs during market downturns, highlights its commitment to resilient energy production and enhancing shareholder value, aligning with its Growth Strategy of Horizon.

Horizon Company is positioned as a focused independent oil and gas producer, primarily active in the Asia-Pacific, including China, New Zealand, Australia, and Thailand. Its acquisition of assets like the Mereenie field has bolstered its gas reserves and regional standing. The company's low-cost conventional oil production, averaging around 4,000 bopd (net), provides a competitive advantage.

The company faces significant risks including the inherent volatility of global oil and gas prices, which impacted its net realized oil price to US$66.6 per boe in H1 FY25. Exploration uncertainties, joint operations, geological risks, and the evolving low-carbon energy landscape, including ESG pressures and potential funding challenges, also present headwinds.

Horizon Company's future strategy is geared towards sustained profitability and growth. Initiatives include investing in production expansion and maximizing free cash flow, as demonstrated by its H1 FY25 results. The company is actively pursuing infill drilling campaigns, such as those in Block 22/12 in China, to convert contingent resources into reserves.

The acquisition of the Sinphuhorm and Nam Phong gas fields in Thailand, effective January 1, 2025, is a key move to enhance cash flow and diversify its asset base. Horizon Company aims to solidify its position as a profitable intermediate-sized energy company, contributing to regional energy security while adapting to new trends and embracing its role in a low-carbon future. Understanding the Marketing Strategy of Horizon provides further insight into its operational framework.