HZN Quarterly looking strong

NZ assets are continuing to perform strongly according to partner CUE. The previous quarterly reported a 16% increase in production and that has been sustained into the last quarter. If nothing else breaks down the next quarter should be even better. Meanwhile, our Chinese asset is on a tear. All in all the HZN quarterly should be the strongest yet. If PNG's PM recent treatment of Oil Search is anything to go by we will not have any positive news about Stanley etc. But Horizon's engine is a V8 and we will see further debt reduction.


CUE oil production was inline with the previous quarter, including 7 days of non production while the annual field maintance shutdown was completed safely during June. MR3a production well was offline for most of the quarter due to failure of the Electric Submersible Pump (ESP). The Joint Venture is currently considering options for a workover to replace the ESP.

At the end of the quarter, production was approximately 7500 bopd, which is significantly higher than the Operator’s budget. This is the result of increased MR6a production, well optimization activities and increased water injection. Further production enhancement opportunities which are being progressed include the installation of individual well meters and use of higher capacity ESP equipment for the MR6a well.