The reality from management “Dear Shareholders, The last year...

The reality from management

“Dear Shareholders,

The last year has been, most notably, a period of transition for Horizon Oil - a transition from a company with modest, single sourced production, revenue and cash flows from operations, to a company with substantial, sustainable and dual-sourced production, revenue and cash flow streams. This cash flow will provide the foundation for funding the Company’s substantive portfolio of growth assets, particularly in Papua New Guinea - a development pipeline that can reasonably be expected to deliver substantial value for shareholders in the future." (page 2)

"Based on the production forecast that follows this report, we expect this increased level of production to continue through to the end of calendar year 2017 from the Maari and Beibu Gulf fields alone. The resultant cash flow, together with cash reserves, further payments anticipated from Osaka Gas and drawdown on our debt facilities, as required, will be utilised to develop the substantive condensate and gas reserves in PNG. The production forecast demonstrates the potential, company-changing impact of production from these reserves, especially the gas and, as shareholders would expect, developing these is the number one priority of your board and management." (page 6)

"Key to delivering on the above objectives is our staff and management team. They have performed superbly this year, executing a successful capital raising and implementing a merger attempt, while carrying out their normal duties in the professional manner that the board has come to expect." (page 6)

Now the reality from a share holders perspective.

To any outsider reading this report, Horizon Oil looks to be a super company complete with a team that is said to have “performed superbly” – so superbly in fact that the one aspect shareholders look to when appraising the real performance of a company is the share price. Indeed, the share price of this superb looking company last traded at 28c prices and in fact touched 26c last week.

Message to the management

Yet again the share holder is left reading about Horizon’s intention to deliver value to the shareholder, indeed “substantial value” – so far it's just been words and talk - so please please put some substance to your rhetoric and start delivering on your promises to share holders.

One can only wait in hope, good luck all, maybe this will be the year. M1