several positives due shortly, page-13

Commsec rate hzn as a buy, sp target 55c.

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HORIZON OIL LIMITED1
Summary of Report Stock Code: dated 27 August 2013 HZN
FY13 - TINGU DRILLING COMMENCED HZN's FY13 result
Sector: Resources
12mth Price Target: $0.55*
Last Traded: $0.32*
Market Cap: $401m*
OVERWEIGHT
Underlying NPAT of USD3.5m is above consensus USD0.7m and CBA forecast of USD2.8m. Difference to our forecast relates to lower-than-expected exploration expense, partially offset by higher finance costs. No dividend as expected.
PNG – negotiations with PNG Governm
The Stanley approval is key to progressin
statement and technical aspects of the Stanley development plan. Remaining approvals required prior to the commencement of development are the execution of the Gas Agreement with the Government and the convening of a development forum with landowners and affected parties. HZN continues to work towards finalising these approvals which are the key CP to complete the JV with Osaka Gas. Upon receipt of the PDL, HZN should receive USD74m upfront for 40% of its interests across various permits. HZN should receive a further USD130m from Osaka Gas once the final investment decision (FID) is taken on an L development. The JV is seeking to commercialise the assets in the region through early liquids stripping and a mid-scale LNG development.
PNG – Elevala/Ketu FEED studies conti
Pre-FEED studies for Elevala and Ketu ha
development licence application to the PNG Government in 1QCY14. Development planning for Elevala/Ketu includes provisions for incorporating Tingu if the exploration well is successful. Drilling of Tingu-1 commenced in August with the well expected to take about 45 days to complete. If successful, HZN believes Tingu could be a similar size to Elevala (2C resource of about 400bcf gas and 22mmbbl condensate).
Beibu Gulf production increased, devel
The five-well development drilling program
well program on the WZ 6-12 field. The drilling program incorporated the additional discoveries unearthed in the successful 2012 exploration campaign (adding 0.7mmbbls to project reserves), and was completed ahead of schedule and within budget. Production from the developed fields has increased to 10kbopd (gross), with HZN anticipating maximum plateau production Beibu to reach 16-18kbopd (gross) in FY14.
ent for Stanley the Osaka Gas
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opment drilling on the WZ 12-8

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ing commence ted, with FEED s
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