Horizon Oil's strategic drilling initiative

Horizon Oil (ASX:CTP) has announced the commencement of an infill drilling program in the Mereenie Field, Northern Territory, Australia. The drilling involves two wells, West Mereenie-29 and West Mereenie-30. This initiative is expected to significantly enhance gas production rates as part of Horizon's strategy to capture the domestic gas market.

Horizon Oil's production expansion and future outlook

Horizon Oil has begun an infill drilling program at the Mereenie Field, starting with West Mereenie-29 on December 5, 2024. The program includes two wells and aims to increase gas production by up to 6 Terajoules per day. The increased output will be sold under a new NT Government Gas Sales Agreement. Central Petroleum manages the drilling, with costs covered by Horizon's cash reserves. This move aligns with Horizon's strategy to boost production and follows the Mereenie acquisition and a strategic gas supply agreement. The partnership in Mereenie Field involves several stakeholders, with Horizon holding a 25% share. This drilling program represents a significant step in Horizon's commitment to growth and strategic investments in the domestic gas market.

Executive insights on Mereenie Field drilling

Horizon CEO Richard Beament expressed satisfaction with the program's potential to increase gas production for the domestic market, highlighting it as a strategic move following recent acquisitions and agreements.