HZN in the PNG takeover action.

The big hope for Horizon is that it will commercialise its massive Stanley gas field most likely through participation in the PNG LNG Project, operated by ExxonMobil and in which Oil Search has a stake. Takeover action that brings cashed up players to the table increases the chance this will happen. Oil Search was seen as the main predator for Horizon but has its own debt problems. Woodside is much bigger and financially capable. If it gets its hands on Oil Search (or perhaps Santos as the Eureka Report has suggested) it will want to work with partners in the PNG LNG project to use all its production potential. That means going after Horizon or it's assets. Last night the PNG cabinet indicated that while it wanted more money for its 10% shareholding in Oil Search it does not oppose the Woodside deal outright. But the cash strapped PNG Government will also want to maximise the potential of the PNG LNG Project. They don't like massive assets like the Stanley field not producing royalties for them. There are several possibilities that could play out here but Horizon is certainly being circled by the majors, as was reported in the AFR some time ago. And the share price of Horizon, down by 75% in a year, makes it a very attractive as either a take-over target or a part of a new proposal to commercialise Stanley. EIther would see a dramatic SP improvement, probably back into the 20 cent range or higher.