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Highlights
- Horizon gains stake in two Thai gas fields
- Adds 3.9 MMboe in reserves and 2,000 boe/d in output
- Strengthens production base with long-term gas contracts
Horizon Oil (ASX:HZN) has announced a significant expansion of its international asset base through the acquisition of key interests in two onshore gas fields in Thailand. The move marks the company’s return to the Thai energy market and positions it for steady, long-term growth in natural gas production, reinforcing its status as a prominent ASX energy stock.
The company has entered into 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. The acquisition is being executed through Horizon Thailand Investments Pty Limited, a subsidiary of Horizon Oil. The deal is part of a joint effort with Matahio Energy, which is acquiring the remaining 25% stake in the venture.
Financially, Horizon Oil’s 75% stake in the newly formed holding company, EMEPKI, comes at an upfront cost of US$30 million. The transaction also includes contingent payments of up to US$7.5 million over a six-year period, depending on certain performance milestones. To support this acquisition, Horizon Oil has amended its existing debt facility, securing an additional US$22 million in funding, with potential for another US$10 million post-acquisition.
This acquisition brings with it proven production assets and substantial reserves. Horizon will add approximately 3.9 million barrels of oil equivalent (MMboe) of 2P reserves to its portfolio. In terms of daily output, the deal is expected to boost net production by around 2,000 barrels of oil equivalent per day (boe/d).
Both gas fields have a history of reliable and steady production, underpinned by long-term gas sales agreements with PTT, Thailand’s national energy company. These agreements provide a solid revenue base and add predictability to Horizon’s cash flows.
This transaction represents a strategic move for Horizon, enabling geographic diversification and enhancing the company's production profile. The company emphasized that this low-cost platform offers strong upside potential, with opportunities for further development and collaboration with established partners such as PTTEP and Matahio Energy.
According to Horizon Oil’s leadership, the assets not only complement the existing portfolio but also support the broader goal of long-term energy supply and operational growth in the Southeast Asian region. With this acquisition, Horizon is set to strengthen its role in the regional gas market while ensuring a more balanced and diversified asset base for the future.
