as as long serving loyal share holder I feel your pain too. BTW I have no idea why the sp has dropped.
I can’t help but feel though that the intrinsic value of the company has grown significantly since it was valued at around 9c during the debt troubles. Interestingly png assets attracted a very low component valuation back then. You could say largely written off.
the improvements in oil production and poo were not factored then. Neither was the profitability and near complete debt reduction and removal of staggering imc interest charges.
see 2016 post from gdn (thanks gdn you saved me the time of trawling through the grant samuels report).
the reason I hold is because I realise what the company was being valued at before achieving profitability and almost 0 net debt. There are also some signs of further diversification in other oil assets which have in recent years been the backbone revenue for hzn. See quotes for ceo letter. Some of the things shareholders are calling for may actually come to pass.
”This, and other significant developments, will take place in coming years around our PNG asset base and we anticipate the composition of our joint ventures will change in the near future. These matters will have an impact on the manner and timing of the commercialisation of our PNG resources.”
”Looking ahead, and facilitated by our strengthened balance sheet, Horizon Oil is targeting growth opportunities in our focus area of Asia Pacific to complement our conventional oil production assets. Strong production and cashflow from our existing assets provide a sound platform for future growth. We will be disciplined in our assessment of opportunities and the execution of associated transactions.We will continue our focus on enhancing our existing production through further optimisation activities in our oil fields in China and New Zealand, together with infill, appraisal and exploration opportunities conducted in-field or near-field to enhance production and extend field life.”
what they do is complex and imc need them to follow through. I did not vote against their shockingly high remuneration as Sheridan needs some time and is delivering results. I feel they are expensive assets needed for the time being, to get us what we want.
it may be worth considering this company based on current balance sheet and track record of producing incoming bearing assets. If png comes of due to commercialisation or resale then it would be hard to think we would see downside.
these are my opinions DYOR.
merry Christmas and happy new year to all.
HZN Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
