Horizon Oil's new drilling program

Horizon Oil (ASX:HORIZ) has initiated an infill drilling program at the Mereenie Field in the Northern Territory, Australia. The program involves drilling two new gas wells, West Mereenie-29 and West Mereenie-30, aimed at enhancing gas production by up to 6 terajoules per day. The drilling is expected to last two to three months and supports a gas sales agreement with the Northern Territory Government.

Overview of drilling strategy and goals

Horizon Oil's announcement of an infill drilling program at the Mereenie Field marks a strategic move to boost gas production by up to 6 terajoules per day. The two new wells, West Mereenie-29 and West Mereenie-30, are set to enhance production capabilities over a two to three-month period. This effort aligns with Horizon's strategy to invest in production growth and support the domestic gas market. The increased output will be sold under a gas sales agreement with the Northern Territory Government. Horizon's share of drilling costs will be covered by existing cash reserves, and the project is operated by Central Petroleum. This drilling initiative highlights Horizon Oil's commitment to strengthening its position in the Mereenie Field and capitalizing on domestic market opportunities.

Executive insights on drilling commencement

We are pleased to commence the infill drilling program targeting increased gas production. The strategic gas supply agreement with the Northern Territory government is a significant achievement that supports our production growth strategy.