At this week’s annual meeting in Sydney, the retiring chairman of Horizon Energy Ltd (ASX: HZN) reminded shareholders that the stronger financial performance in FY2018 had been achieved largely from acquiring an extra 16% interest in the Maari-Manaia oil fields in the offshore Taranaki of New Zealand.
John Humphrey had already announced he was retiring from the board at the AGM and said he was being replaced as chairman by Mike Harding, who is chairman of Downer EDI Ltd and rare earths company Lynas Ltd. Harding was formerly chairman of Roc Oil Co and Clough Ltd and a former director of Santos Ltd.
Horizon had an oil sales volume from the China and NZ operations of 1.65 million barrels – 16% higher than in FY2017, while sales revenue at $US100 M was 46% above the previous year, partly reflecting the stronger oil price.
Horizon now holds a 26% interest in Maari-Maniai which added an additional 3.1 mmbbls to proved-probable 2P reserves.
Humphrey said Horizon continued to implement its policy of hedging commodity exposure at “prudent levels” with about 800,000 barrels hedged for fiscal 2019.
“While we advance our planning for Western LNG (in Papua New Guinea), it is worthwhile to note that the condensate rich gas resources in the Stanley, Elevala, Ketu and Ubuntu fields lie to the south of ExxonMobil and Oil Search’s P’nyang gas field which will provide the threshold volumes for PNG LNG train 3,” Humphrey said.
He said the gazetted route of the gas and condensate pipelines for P’nyang to the PNG LNG facility passes within 20 kilometres of the Ketu field. It was clear, he said, that the PNG Government’s support for coordinated development was a positive for Horizon.