Horizon Oil achieved its highest annual oil and gas sales volumes in five years in 2025, reaching 1.83 million barrels of oil equivalent. This increase was primarily driven by production from its recently acquired Nam Phong and Sinphuhorm assets in Thailand, which contributed from 1 August 2024. However, the company faced lower net realised prices per barrel due to a softer oil price environment.

Thailand Operations and Growth

Production from the Thai assets has been a key growth driver, more than offsetting the natural decline from the Block 22/12 asset in China's Beibu Gulf. For the first half of the 2026 financial year, total production was 1.07 million boe, a 26% year-over-year increase. The company highlighted a strong relationship with Thai national upstream company PTTEP and noted that Thailand's energy security requirements are progressing the Nam Phong and Sinphuhorm assets, which supply gas to the Nam Phong power station. This plant provides about 20% of Northeast Thailand's power generation.

Key development milestones include the Nam Phong booster compression project, which reached a final investment decision swiftly after Horizon took over operatorship from ExxonMobil. First gas from this project is targeted for July 2025 and is expected to increase Nam Phong field output by at least 40%. Furthermore, the tie-in of the PH1-ST and PH14 wells at the Sinphuhorm asset is targeted for October 2026. Horizon, in consortium with Matahio Energy, holds an 80% operating stake in Nam Phong, with PTTEP holding the remaining 20%.

Australian and Chinese Assets

In Australia, the Mereenie joint venture in the Northern Territory is progressing following a binding letter of intent with the Power & Water Corporation (PWC) for gas supply through 2034. The deadline to execute a binding gas sales agreement was extended to 2 March 2025. Gas offtake-linked infill drilling at the West Mereenie-31 and -32 wells is planned for late 2026. Other venture partners are Central Petroleum (25%, operator), Echelon (42.5%), and Cue Energy Resources (7.5%). Horizon holds a 25% interest.

At the mature Block 22/12 offshore China, operated by China National Offshore Oil Corporation (51% interest), the joint venture is conducting a feasibility review for a multi-well development at WZ12-8E. Any drilling and workover programme remains subject to further technical and economic evaluation, approvals, and rig availability. Horizon holds a 26.95% working interest in this block.

Financial Performance

Horizon's full-year 2025 profits declined to US$8 million, attributed to lower oil prices and a US$34.2 million amortisation of production phase assets. Profits for the first half of the 2026 financial year also decreased to US$2.4 million, down from US$6.6 million in the same period the previous year.