Horizon Oil's latest drilling campaign

Horizon Oil (ASX:HZN) has started an infill drilling campaign at the Mereenie Field in the Northern Territory, Australia. The operation includes drilling two gas production wells, aiming to enhance gas production rates by up to 6 terajoules per day. This initiative will support a new gas sales agreement with the Northern Territory Government.

Horizon Oil's strategic drilling outlook

Horizon Oil is embarking on a strategic infill drilling campaign at the Mereenie Field to bolster its near-term gas production. This campaign, involving two gas wells, aims to increase output by 6 TJ/d, aligning with Horizon's strategy for production growth and a recent long-term gas supply agreement with the Northern Territory government. The operation is funded by existing cash reserves, and Horizon holds a 25% interest in the project. This initiative reflects Horizon's commitment to strengthening its domestic gas market position and enhancing production capabilities.

CEO's perspective on drilling initiative

We are pleased to commence the infill drilling campaign, which supports the domestic gas market and enhances the value of our Mereenie acquisition.