Horizon Oil records strong financial year

Papua New Guinea-focused Horizon Oil has had a strong financial year, with its recent June quarter report revealing a 16 per cent increase in production to 1.65 million barrels for the 12 months to June 30 at an average realised oil price of US$64.35 (K208)/bbl.
Production for the June quarter was up 65 per cent from the previous quarter and net operating cash flow up by 42 per cent.
“Horizon Oil’s positive financial performance in the June quarter and the 2018 financial year underscores the benefits, in an environment of strengthening oil prices, of the company’s material production from its developed oil fields in China and New Zealand,” said chief executive Michael Sheridan.
“Infill drilling in China and continued production enhancements in New Zealand are expected to maintain stability of production in the near term, while in the medium term, production levels will be supported by development of the WZ 12-8E field offshore China, for which planning is well underway.
“Horizon Oil also recently increased its stake in the Maari field, in offshore New Zealand, acquiring an additional 16 per cent of the producing oil field in a deal which was completed on May 31.
Sheridan highlighted that the stronger oil price outlook boded well for its Papua New Guinea assets, noting that the Stanley early condensate recovery scheme, put on hold when oil prices collapsed in 2014, “is re-emerging as an attractive investment proposition that has the potential to provide nearer-term condensate and domestic gas revenue while planning for, and construction of, the longer dated Western LNG project take place”.