Horizon Oil completes acquisition of Mereenie oil and gas field

Horizon Oil Limited (ASX: $HZN) has successfully completed the acquisition of a 25% non-operated interest in the producing Mereenie oil and gas field located in the Northern Territory, Australia. The acquisition, executed with Macquarie Mereenie and New Zealand Oil and Gas, was funded through a new A$42.5 million senior debt facility with Macquarie Bank. Central Petroleum remains the operator of the Mereenie joint venture, managing the gas sales function on behalf of Horizon, New Zealand Oil & Gas, and Cue under a joint marketing agreement.

Executive Commentary on Mereenie Acquisition

We are delighted to finalize the Mereenie acquisition and add a third production asset to our portfolio. The acquisition plays to Horizon's strengths as a non-operator, being right-sized, largely self-funded, and with material upside. Based on current production rates at Mereenie, the acquisition will materially increase Horizon's net daily production by approximately 1,100 boepd, and more than double the Company's 2P reserves position at 30 June 2023. The asset provides the Company with material exposure to both the Northern Territory and East Coast gas markets, both of which are forecast to have significant supply side opportunities. With domestic gas recognized as key to the energy transition, Mereenie has a strong part to play in providing essential energy to miners and other industrial users to support the energy transition. The acquisition is expected to meaningfully increase net operating cash flow over the next 5+ years and provide a production base beyond the expiry of our existing assets. We look forward to working with the Mereenie JV participants to further unlock the remaining value in the asset, with planning already underway for a potential two-well development drilling program later this calendar year (subject to JV and regulatory approvals, and rig availability).

Summary of Mereenie Acquisition and Outlook

Horizon Oil Limited has successfully completed the acquisition of a 25% non-operated interest in the producing Mereenie oil and gas field, marking a significant addition to its portfolio. The acquisition is expected to materially increase Horizon's net daily production, more than double the Company's 2P reserves position, and provide exposure to key gas markets. With domestic gas playing a crucial role in the energy transition, the Mereenie asset is poised to support essential energy needs. The Company anticipates a meaningful increase in net operating cash flow over the next 5+ years and aims to establish a production base beyond the expiry of existing assets. Furthermore, plans for a potential two-well development drilling program are already in motion, subject to JV and regulatory approvals, and rig availability, indicating a proactive approach to unlocking additional value in the asset.