Response from Horizon

Michael Sheridan called me to respond to my email. Main points below:

As discussed on this thread the AFR Rear Window is a gossip column and the story has no credibility. The company is not going to give it oxygen by responding to it.
The company does not need massive funding as it has just refinanced and enjoys strong bank support and development funding to move forward, production is at record levels at low cost.
Re the operational comments in the article, under the company's arrangements with Talisman (now Repsol) when they acquired a 50% interest from Horizon Oil in the Stanley field in 2009, it was agreed that Talisman could assume operations after 2012. As it was, they did so in March 2014, after Horizon Oil had completed the drilling, field development plan, all government negotiations and the application process for the development licence. Talisman stepped in at the date of the grant of the licence to manage the facilities construction phase. HZN advised of the transfer of operatorship in the March 2014 quarterly. Subsequently, HZN was requested by the joint venture to carry out the development drilling of the Stanley -3 and -5 wells for Talisman. These were successful wells. The request for Horizon Oil to manage the complex drilling and associated logistical operations is a positive indication of the Stanley joint venture’s view of the company.
Talisman does not have the same ability to assume operatorship in PRL 21.
Given the oil price movement over the last 6 months, the Stanley joint venture initiated a value engineering review process to ensure that project design, execution and timing are optimised. Also project cost estimates are being reviewed and updated to ensure that they take advantage of the material cost deflation taking place in the current industry climate. Most industry players are doing the same where they, like the Stanley joint venture, are able to do.
The change of operator at Stanley has little, if any, effect on Horizon Oil’s cashflow. Operators don’t receive an income from the joint operations, simply proportionate cost recovery. The operational personnel previously working on the Stanley project have either been released or, in limited specific cases, deployed to the Elevala/Ketu development planning.
Lately the share price has been depressed as a big holder exits, the reason for the exit is because of insto investor rules around the exit of HZN from the ASX top 100, it's not a reflection on the value of the company.
Of course, Michael couldn't respond to my queries regarding the future of Stanley and the possibilities of linking with Oil Search but I had to ask. He said say HZN is sitting on the largest commercial sized gas reserves in PNG, and OSH is targeting more reserves so there are certainly possibilities there that may well unfold in the future.
Good to hear from the company and apologies to them for my previous post saying they are unresponsive to share holders.