Horizon Oil

[gazprom1]

HZN in a trading halt pending an announcement concerning a "potential material control transaction which is still under consideration". ROC entered into a trading halt also this morning but wording very vague (as is to be expected from their management). Looks likely it is ROC that is trying to potentially take control of HZN despite ROC having a considerably lower MCap. As a holder of both shares (but hold more ROC), I am not enthusiastic. Could be a script offer by ROC as certainly would not have the US$500m plus in cash to take out all of HZN.

It is interesting as management of ROC are typically conservative IMO and HZN has a fairly diversified asset portfolio and PNG is a large project that is going to require large capex.

Thoughts?

Gaz

[gazprom1]

HZN in a trading halt pending an announcement concerning a "potential material control transaction which is still under consideration". ROC entered into a trading halt also this morning but wording very vague (as is to be expected from their management). Looks likely it is ROC that is trying to potentially take control of HZN despite ROC having a considerably lower MCap. As a holder of both shares (but hold more ROC), I am not enthusiastic. Could be a script offer by ROC as certainly would not have the US$500m plus in cash to take out all of HZN.

It is interesting as management of ROC are typically conservative IMO and HZN has a fairly diversified asset portfolio and PNG is a large project that is going to require large capex.

Thoughts?

Gaz

[gazprom1]

...thinking further....ROC have two JV''s with HZN (Beibu and Bohai) in China that ROC could afford to buy from HZN and with the revenues from beibu would be able to finance Bohai Bay. That would leave HZn with mainly its PNG assets which could be then sold to a 3rd party. ROC does not have huge experience in gas mainly oil. That would be more pleasing IMO as HZN should attract a premium and ROC shareholders would not be diluted by a share issue.

Gaz

[JBmurc]

Brought a nice parcel of HZN today 37c confident the merger will go ahead ..At current ROC SP ..HZN should be trading round 44c
some T/O offers on ROC but nothing material

[Corporate]

JB, I'm not sure how you are position with HZN but they have been badly hit since the merger fell through. I don't think it is solely this, oiler are not the flavour of the month at the moment.

In any case I always closely watch HZN when it falls below <30cps.

How reliable do you think the Maari reserve figures are? HZN are recording 6mbo after years of production and some fairly aggressive decline rates.

For me the real value driver is ketu, elevate etc. and getting the gas and not just the condensate out of the ground.

[JBmurc]

Na Corp Sold once it broke down to the low-mid 30's ...moved the funds into MCR

[Crypto Crude]

wow check this out...
market cap 170 million dollars...
Future revenues of 5 billion dollars on sure thing developments...
plus many more growth projects in the future...
The valuation of HZNs stake in beibu gulf alone is worth $280 million dollars...

.^sc

[Joshuatree]

Is that figure of $188 million debt right?

[Daytr]

wow check this out...
market cap 170 million dollars...
Future revenues of 5 billion dollars on sure thing developments...
plus many more growth projects in the future...
The valuation of HZNs stake in beibu gulf alone is worth $280 million dollars...

.^sc

Off what price of oil? Cost of production ?

[Crypto Crude]

daytr... with 2p + 2c of 95 million barrels equivalent just punch some numbers... that 2c is getting booked for development...
its abit presumtuious to use current oil prices... when prices settle hzn has $5 billion in future cashflows plus out reach drilling