Full Year 2024 Horizon Oil Ltd Earnings Call Transcript
Key Points
- Successful acquisition of the Mereenie asset, adding a third production asset to Horizon Oil Ltd (HZNFF)'s portfolio.
- Strong financial performance with $26.2 million in net cash and substantial free cash flow generation.
- Continued focus on ESG initiatives, including emission reductions and safety improvements.
- Strategic gas sales agreement with the Northern Territory government, enhancing long-term production stability.
- Significant increase in 2P reserves, more than doubling to 9.9 million barrels of oil equivalent.
- Sales volumes and revenue were lower for the year due to the expected decline of Block 22/12 fields.
- Production rates from Block 22/12 naturally declined, impacting overall production levels.
- Higher cash operating costs due to the expected decline in Block 22/12 production and higher cost structure for the 12-8 East development.
- Dependence on regulatory approvals for future infill drilling and water handling upgrades.
- Potential risks associated with the change of government in New Zealand affecting the Maari license extension.
Good morning, and thanks very much. Welcome, everybody, to today's presentation. With me is Kyle Keen, the company's CFO, and let's get started.
Well, we've come to the end of yet another strong year for the company, a year which has been transformative for the company, driven by the successful acquisition of the Mereenie asset. This acquisition was a crucial milestone adding a third production asset to the company's portfolio, which provides several strategic benefits, a diversified production base, materially increased reserves and a production base which extends well beyond the expiry of our existing assets.
And then the subsequent signing of a long-term strategic gas sales agreement with the Northern Territory government and the recent joint venture approval of a two well infill drilling program so soon after completing the acquisition with tremendous outcomes and really underscore the strategic merit of the transaction.
Now look, before I dive into the presentation, I wanted
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