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Tumbleweeds blew across the boards on Friday as Horizon Oil (ASX:HZN) declared it’s just picked up a fresh new gas project in Thailand.
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Now commanding an effective 7.5% interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong producing gas field, the plays allow Horizon to boost production by another 2,100boe per day.
That, clearly, hasn’t been enough to get hands rubbing together eagerly. Both because 2,100 barrels of oil equivalent per day is relatively small, and the 7.5% interest at Sinphuhorm appears – sorry to say it – not worth declaring.
At least, that’s what one is left to assume the market may be thinking, given an unchanged share price.
The way Horizon ended up with these Thai projects at all is also of interest. Horizon and another entity called Matahio, now effectively a partnership, collectively bought the stakes off Exxon earlier this year.
Why Exxon wanted to ditch its onshore Thai assets remains to be seen, though a cynic mightn’t have to imagine too far down the possibility road. And it is, of course, the case that fiercely nationalistic Thai NOC PTTEP remains largely in control.
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“The field is a depletion drive reservoir with estimated final recovery factor of 82%,” writers at the Oil & Gas Journal reported earlier this year.
HZN last traded at 20cps.
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