Redi - spruik to attract XOM? Why would XOM bother. They have...

Redi - spruik to attract XOM? Why would XOM bother. They have their hands full with their own LNG project plus the additional saga of now trying to work with IOC and the Elk/Antelope resource.

Besides, HZN as just reporting the data as it occurs - shareholders and potential investors are free to make whatever inference they wish.

We have been told what the forward plan is, namely "...to conduct a flow test to obtain further information on reservoir and fluid properties for input to field evaluation and development planning".

To me that is key as HZN commented "that Tingu and Elevala accumulations are probably connected" and the addition of possibly 100MMBOE of gas/condensate 2C Resource to a combined Elevala/Ketu/Tingu makes the FEED and FID for mid scale LNG that much more likely to proceed.

So it makes the dice roll more favorable.


AJ23,

I like HZN but "at least a billion dollar company". Not yet by a lot way IMO. I think Slide 6 and Slide 7 should be the governing valuation at present.

They have 2P at 20MMBO. Current MC is about $400M so being valued at $20 per bbl of 2P Reserves - more than fair. Could also say that at forecast 2013 exit bopd rate of 5,500 there is probably $150M of MC upside if $100K per flowing bbl is applied - discount accordingly.

Of course that values to upside of PNG at nil (as in no FID) for the potential conversion of HZN share of the resource.

Post FID on Elevala/Ketu/Tingu and converting that to say net to HZN 50MMBOE of 2P (27% of 400MMBOE total 2C) then yes I'd say that has the potential to bring HZN to a Billion dollar valuation on 2P.

HZN then gets milestone payments and another big project to develop. I think its worth more but hard to figure and understand the NPV slide. Plus the finances look fine - especially with OG alliance.

I think its good to be a HZN shareholder at present - growing bopd all the way to 2015 and 2014 is the year for PNG FID for LNG.

Long HZN