Horizon Oil Limited (ASX:HZN) Acquires Stake in Thai Gas Fields
Acquisition Details
Horizon Oil Limited has executed a share sale and purchase agreement to acquire a 7.5% working interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field in onshore Thailand. The acquisition is carried out through Horizon Thailand Investments Pty Limited as part of a consortium, with Matahio Energy acquiring the remaining 25% stake.
Financial Considerations
The upfront cash consideration for Horizon’s 75% holding in EMEPKI is US$30 million, with potential contingent payments of up to US$7.5 million over six years. The funding is secured through an amendment to Horizon’s existing Macquarie Bank debt facility, providing additional debt capacity of approximately US$22 million, and up to US$10 million post-acquisition.
Operational Highlights
The acquisition adds 3.9 MMboe of 2P reserves and is expected to increase Horizon’s net daily production by approximately 2,000 boe/d. The assets feature stable and predictable gas production, supported by long-term gas sales agreements with PTT. The transaction allows Horizon to re-enter the Thai market with a low-cost platform for growth and further diversification of its production base.
Executive Comments
CEO Richard Beament commented, “These assets are excellent additions to our portfolio – complementing, diversifying and expanding our production base. We are delighted to re-enter Thailand and partner with Matahio and PTTEP to drive growth and sustain production into the 2030’s.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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