Horizon Oil

**gazprom1** · 05-10-2011, 07:28 AM

Hey DF,

Thanks for your post. All great with me. Markets are interesting to say the least.

Re HZN, those support levels of 10.5 cents and 13.5 cents, that would have been a few years back?????They did a SPP at 10 cents years back and that is when I piled in (I actually was buying from 20 cents right down). They are different company now to what they were then - they only had prospects back then and no producing assets. Currently they have plenty of cash and projects that are producing.

I am going to transfer some money to my brokerage account today and look to buy some in the coming days. Will look to buy over the coming months...it is a no brainer for me.

DF, can you take a look at the charts for PAN and let me know your thoughts if you have the time. Dividend yield is 5.5% and it has been hammered and yet is cash flow positive and a growing war chest of funds.

Keep up the great work with your posts. Hope you are well over there and let our apples in=)=)=)

Gaz

**drillfix** · 05-10-2011, 01:22 PM

Hi Gaz,

I have posted some comments and charts in another thread regarding PAN (to not go off topic here), so check it out and sorry that it doesn't have a weekly as I usually like my PRT charts which I usually post with EOD data.

With regards to HZN, seems to be a bounce off the previous 17c so perhaps of 19c again where resistance lay.

Something is going to happen soon with HZN as the 13ema falls (currently at 19.5c) and dropping while price becomes squashed with then only left with one choice, to move up, or to move down.

As they have cash and projects that are producing then surely it will break to the upside (favour probability?) as if they never had that then probability would suggest to the downside.

Like everything, time will tell, so may be a good time to buy even though the stock is currently showing it is in a heavy downtrend.

Oh btw, No worries about the apples mate, providing they were grown on your farm they are always welcome here mate

Or at least on the gold coast anyway..lol

Cheers~!

**drillfix** · 05-10-2011, 03:53 PM

Hey Corp and Gaz,

It appears there is a BOT trying to sell the stock down.

Buyers step up to the plate at 17.5c and then after that happens, tiny parcels getting sold off, which of course, add up after a few days or so.

Add/Edit:

Looks like I was wrong for a move to the upside, no doubt support will be tested now we have a break past 17c to 16.5c, so the question is when.

Are these guys expecting any news/results or anything soon? As the way they are getting sold off like this, could suggest that news to come may not be too flash, hence a sell off.

Corporate · 04-02-2012, 09:35 AM

Fellas,

I bought some HZN a week or so ago, and this company really does excite me! Funding is a risk but all information points to management being all over this. Read the chairmans report, very reassuring.

China progressing well with lots of upside (production commencing at the the end of the year).

But it's PNG that I really like:

Stanley liquid stripping FID approved (11mboe condensate and 360 bcf gas)
Elevala drilling success proving the concept of a field that is likely to be about twice the size of Stanley (19mboe condensate and 300 bcf gas)
Success at Elevala upgrades the prospectively of Ketu (to be drilled next), Tingu and Elevala West
Farm in to PL259 which surrounds the whole Stanley and Elevala area!

Look look at the recent company presentations and the production that is coming on stream from PNG and China in the next 1-2 years!

Coming up is confirmation of funding ($160m from a consortium of banks), no dilutive equity rasing. And the results of ongoing negotiation to sell PNG gas.

Check it out. xstrata and HIG delayed the release of their feasibility study for the frieda river copper/gold project (tier 1, mega project) in PNG to further assess power options. They were originally going to to use a very expensive hydro setup. However, the feasibility study was delayed to assess "a number of potential power options becoming available in the study timeframe" Word on the street is that Stanley gas is one of the options being assessed!

DYOR

**gazprom1** · 04-02-2012, 09:35 AM

HZN has had a good run for the past 4 months - 16.5 to 26.5....60% rise. Past week or so it has moved from 21 to 26.5. Strong revenues, PNG on the way, NZ revenue....market sentiment has helped.

Gaz

**gazprom1** · 04-02-2012, 09:39 AM

Corp....you posted half a second before I did. How is the market treating you?? It has been a fantastic start to the year...just wondering if I should lock in some profits. Have had a full recovery on AEM - 0.6 to 1.0 this week. Inclined to get out and put it down to experience as I have no idea and no faith in what they are doing.

Re HZN, if the market sentiment changes IMO HZN could give back some of its gains. Love it medium term.

Gaz

Corporate · 04-02-2012, 12:59 PM

Just to add something further. A new player in PNG has recently listed on the ASX with the ticker code KPL. As far as I can tell they have a few misc permits in PNG but also 15% of PRL 21 which contains the Elevala discovery. The same permit that HZN holds 45% of.

Now KPL has 170m shares on issue which equates to a current market cap of $34m. They also have some cash which will mainly be used for admin and the cost of drilling of Elevala and Ketu. I know it is very simplistic but lets assume that the other misc permits are not ascribed any value. Therefore, the implied value of 100% of PRL 21 based on KPL market cap is $226m, equating to $102m for HZN share of the permit!!

What ever way you look at it, even half the $102m. I think that the market hasn't yet factored in how valuable PRL 21 is. It is likely to be bigger than Stanley and imagine the synergies of the two developments.

Then management farm into PRL 259....read the announcement in detail

"Planned production hugs at Stanley and Elevala/Ketu"

http://www.asx.com.au/asxpdf/2012012...cknk0jm0qn.pdf

**ELYOB** · 05-02-2012, 11:02 PM

Gas in PNG is a problem atm as PNG is the laughing stock of international "oiler patch" . The govt and business is pathetic at this time . I guess this should be taken into account , Peter Strachan has made some thoughts ....????

HZN does not explain to shareholders or the market what is going on in PNG politically and business wise . Risk is high ........what a country. Other oilers with resources in PNG give zero value to their little squares on ye mappe!