Horizon Oil seen on takeover radar Horizon Oil is believed to be...

Horizon Oil seen on takeover radar
Horizon Oil is believed to be back on the radar as a takeover target, according to sources, amid an anticipated upcoming shake-out in the Australian oil and gas space.

Horizon, which has seen its market value dwindle to about $115 million from about $500m six months ago, was previously on the radar of China’s Fosun before the conglomerate opted instead to swallow Roc Oil in a takeover.

Various parties are since believed to have been circling the business, with trading houses out of Japan and strategic investors also interested in buying its oil producing assets being used to fund its exploration program in PNG.

While Horizon may be small, the activity surrounding the business could be a harbinger of more activity in the oil and gas space to come.

One more radical suggestion being considered is whether giant BHP Billiton could exploit the weakness in the global oil price by seizing on industry giant Woodside Petroleum.

It is a theory others have widely played down, although they concede that it is an option BHP has explored in the past and one not to be dismissed outright.

Debt-heavy companies such as Horizon are becoming increasingly vulnerable to radars.

The falling Australian dollar is also making such targets increasingly attractive.

Even the more stronger performers, such as Oil Search, could be in the cross hairs of global giants, according to some market sources.

Oil Search is perceived to be at risk if its shares fall below $7. Yesterday, they closed at $7.11, below the $9.50 levels they struck a year ago. The company generates at least $1.2bn in annual earnings and viewed as the best operator of liquefied natural gas projects globally.

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