Horizon Oil is well placed to manage its way through the current volatile oil price environment.
KEY POINTS
Horizon Oil has a strong hedge position to mitigate against short term oil price volatility. It has 270,000 bbls of oil swaps covering the 6-month period to June 2020 at a weighted average price of US$68.35/bbl, net of credit charges.
Based on lifting timings, March 2020 forecast oil sales are approx. 80% hedged at over US$69/bbl.
The balance sheet continues to strengthen and the company remains on track to be in a net cash position by 30 June 2020.
There is continued strong free cashflow generation - with cash operating costs over recent months remaining below US$20/bbl produced.
Cash on hand is currently in excess of US$25 million.
Horizon Oil's debt facility is currently drawn to US$29.4 million with the next scheduled debt repayment of US$3.8 million not due until 31 December 2020.
The company has limited near-term capital commitments, with all existing commitments for calendar year 2020, expected to be covered by current free cash flow generation.
HORIZON OIL'S CHIEF EXECUTIVE OFFICER, CHRIS HODGE, COMMENTED:
"Horizon Oil is fortunate to hold low cost, high margin production assets. When coupled with its robust balance sheet and favourable hedge position, it is well placed to manage the recent downturn in oil prices. With continued strong free cashflow generation, even at these low oil prices, the Company remains well positioned to pursue growth opportunities."
Authorisation
This ASX announcement is approved and authorised for release by the Company Secretary.
Horizon Oil Limited
More Information
Kylie Quinlivan
T +61 2 9332 5000
ABN 51 009 799 455
Horizon Oil Limited
info@horizonoil.com.au
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Horizon Oil Limited published this content on 12 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 March 2020 23:18:05 UTC
Horizon Oil Limited is an Australia-based upstream oil and gas company. The Company is engaged in the exploration, development, and production of petroleum. The Company operates through two segments: New Zealand exploration and development, and China exploration and development. New Zealand exploration and development segment is involved in development and production of crude oil from the Maari/Manaia oil field development, and the exploration and evaluation of hydrocarbons within the PMP36180. China exploration and development segment is involved in developing and producing crude oil from the Block 22/12-WZ6-12, WZ12-8W and WZ12-8E oil field developments and in the exploration and evaluation of hydrocarbons within Block 22/12. The Block 22/12 oil development comprises nine hydrocarbon pools across three different production licenses. It lies 35 kilometers southwest of Weizhou Island, China. The Maari oil field lies 80 kilometers off the south Taranaki coast in 100m water depth.
HORIZON OIL LIMITED 
