Horizon Oil

[Daytr]

I like the hedging!
Reasonable amount of debt $110M + potential of another $80M.
Is convertible just at the prevailing share price or does it have a strike?
Its quite a big dilution at the current SP.
And quite a bit of debt if not converted.

[Joshuatree]

Down to 11.5c now . hasn't been this low since 2009 ,off a cliff. I can feel a prince song coming on. Too early for me to even consider an oiler.

[skid]

Unfortunately its like swimming against the tide atm for most oilers---not like the good ole days

[JBmurc]

Horizon hedges its bets
28 January 2015
ASIA-focused company Horizon Oil has finished out the December quarter in an enviable position, with its hedging leaving it with a strong cash balance and time to catch its breath.
At the end of the quarter the company had $US43.5 million ($A54.8 million) cash on hand and oil price hedges in place for more than 842,500 barrels of oil at an average price of $95 per barrel.
Also giving the junior reason to smile was its low operating costs of $20.78 per barrel on average, with this cost expected to be reduced further throughout 2015.
Operating income for calendar year 2014 was boosted by the high price per barrel received, coming to $91 million, up from $62 million in 2013.
Production for the December quarter was 306,349bbl, making for production revenue of $23.8 million.
The majority of production came from the Block 22/12 acreage in China’s Beibu Gulf which flowed an average of 9,887bbl per day.
The Maari/Manaia fields in New Zealand’s Taranaki Basin produced an average of 6,649bopd.
Horizon carried out a budget planning process during the quarter, resulting in a reduction in exploration and development expenditure for the year ahead to conserve capital.
The company intends to use the time instead to plan for development projects in China and PNG and wait for the lower development costs expected to flow on from the low oil price.
A value engineering review process has been started at the Stanley gas-condensate field in PNG.
The review is intended to ensure that project design, execution and timing are optimised and that cost estimates are in line with the current climate.
Elsewhere in PNG’s Western Province, the company has reported good progress on the Elevala/Ketu development plan for a mid-scale LNG project.
Development and pipeline applications are being reviewed along with the environmental impact statement for the project, while project selection has been extended by two months to ensure good cost estimates.
Perhaps the biggest recent news for the company in PNG however, was the announcement after the end of the December quarter that the PNG LNG joint venture partners had secured development and pipeline licences for the P’nyang field north of Stanley.
The proposed pipeline could offer Horizon an alternative route for commercialisation of its assets in the region through a potential gas aggregation project taking in the Stanley, Elevala/Tingu, Ketu, Ubuntu and P’nyang fields.

[Corporate]

I'm down a decent amount on my 14c purchase, but with oil rising above $60 Horizon looks like a buying opportunity

[Daytr]

Short term anything can happen.
Medium to long term, oil is in big, big trouble.
Gas producers may do ok as much lower emissions.
But the oil market is on the cusp of changing permanently imho.
Check out the peak oil thread

[babymonster]

When is its HY report going to release? Anyone know?

[Crypto Crude]

bought into hzn on open this morning..

[Crypto Crude]

market cap of 160million...
wow...
current production of 4000 BOPD... 2019 16000 BOPD

2p +2c 100 MBOE
Before you even break down these immense reserves, just look at the Osaka deal...
the deal values HZNs PNG total asset value alone at $500 million US...
Maari was paid off in 2 years... we have a high hedged oil price...
China operations were successful in every way... I have never been involved in an oil development that came in under budget, on time, reserves and production exceeding expectations like with the Beibu gulf fields.....
We have PNG Mid scaled LNG project with PRL21
Stanely is going to be huge and we have all the necessary approvals for development...
HZN really is a standout company...
Its crashed with the oil price...
Even our JV partner in PRL21 (ketu Elevala), Kina petroleum has only fallen 10cents to now remain around 25c... However HZN has tanked hard...
So many years have passed and Horizon did start to show signs of true valuation during 2013, now its 2015 we are so much further ahead...

You just got to remember,
all the risk is out of HZN with the huge reserve base...
No small oil companies have triple digit millions of barrels of oil...
So while the deep selling continues one can only smile...

There is no justification for HZN falling from 40 cents to 12 cents when all operations are running at such a huge, and I add leveraged success... The future revenue streams are worth $5 billion

Its exciting to be alive and involved in this... and finally onboard...

.^sc

[Crypto Crude]

HZN has net tanglible assets of 49cents per share...
49 cents...
"The NTA/share value is used to determine, in theory, the money that each shareholder would receive if the company was forced into liquidation and all of the assets were sold at that point in time"

IF HORIZON TRIPLED IN MARKET VALUE IT WOULD STILL BE TRADING discount to NTA...
This is pure sickness...

.^sc