Horizon Oil to acquire stakes in Thai onshore gas fields

Horizon Oil has signed a merchantability and acquisition statement to get stakes successful the producing Sinphuhorm and Nam Phong state fields onshore Thailand from ExxonMobil.

The acquisition involves a 7.5% moving involvement successful the Sinphuhorm state tract and a 60% involvement successful the Nam Phong state field, enhancing Horizon Oil's portfolio successful the region.

Horizon Oil, done its subsidiary Horizon Thailand Investments, volition get these interests successful the E5N, EU1 and E5 improvement licences.

The acquisition is structured arsenic a consortium, with Horizon taking a 75% involvement successful ExxonMobil Exploration and Production Khorat (EMPEKI) and Matahio Energy acquiring the remaining 25%.

Matahio Energy volition negociate the employees and operatorship of the Nam Phong field.

The fiscal presumption see a header currency information of $30m (A$47.47m) for Horizon's 75% holding successful EMEPKI, effectual from 1 January 2025.

There are besides contingent payments of up to $7.5m implicit six years, taxable to circumstantial conditions.

The acquisition volition beryllium funded done an amendment to Horizon's existing Macquarie Bank indebtedness facility, providing up to $22m, with an further $10m disposable post-acquisition.

Horizon CEO Richard Beament said: “These assets are fantabulous additions to our portfolio – complementing, diversifying and expanding our accumulation base. With combined nett regular boe [barrels of lipid equivalent] accumulation akin to our existent Block 22/12 fields, and with existing concessions moving into the adjacent decade, these assets person the imaginable to let Horizon to prolong accumulation astatine existent preacquisition levels done into the 2030s.”

The Sinphuhorm field, located 500km north-north-east of Bangkok, was discovered successful 1983 and began accumulation successful 2006.

It has been developed with 11 wells and is connected to a cardinal state works with a capableness of 140 cardinal modular cubic feet per day.

The Nam Phong field, discovered successful 1981 and located 440km north-north-east of Bangkok, started accumulation successful 1990. It presently produces astir 6.6 terajoules per time (TJ/d) gross, with Horizon's nett accumulation astatine 4TJ/d.

Operating costs for the Nam Phong tract are astir $11.7/boe, excluding taxation and royalties, with decommissioning costs for Horizon's 60% involvement estimated astatine little than $4m.

Production from Nam Phong is processed astatine the EMEPKI-operated state stabilisation unit.

The transaction is taxable to customary completion conditions, with the backing structure, on with expected currency travel from the fields, supporting Horizon's organisation strategy.

"Horizon Oil to get stakes successful Thai onshore state fields" was primitively created and published by Offshore Technology, a GlobalData owned brand.