Horizon Oil has signed a sale and purchase agreement to acquire stakes in the producing Sinphuhorm and Nam Phong gas fields onshore Thailand from ExxonMobil.
The acquisition involves a 7.5% working interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field, enhancing Horizon Oil’s portfolio in the region.
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Horizon Oil, through its subsidiary Horizon Thailand Investments, will acquire these interests in the E5N, EU1 and E5 development licences.
The acquisition is structured as a consortium, with Horizon taking a 75% stake in ExxonMobil Exploration and Production Khorat (EMPEKI) and Matahio Energy acquiring the remaining 25%.
Matahio Energy will manage the employees and operatorship of the Nam Phong field.
The financial terms include a headline cash consideration of $30m (A$47.47m) for Horizon’s 75% holding in EMEPKI, effective from 1 January 2025.
There are also contingent payments of up to $7.5m over six years, subject to specific conditions.
The acquisition will be funded through an amendment to Horizon’s existing Macquarie Bank debt facility, providing up to $22m, with an additional $10m available post-acquisition.
Horizon CEO Richard Beament said: “These assets are excellent additions to our portfolio – complementing, diversifying and expanding our production base. With combined net daily boe [barrels of oil equivalent] production similar to our current Block 22/12 fields, and with existing concessions running into the next decade, these assets have the potential to allow Horizon to sustain production at current preacquisition levels through into the 2030s.”
The Sinphuhorm field, located 500km north-north-east of Bangkok, was discovered in 1983 and began production in 2006.
It has been developed with 11 wells and is connected to a central gas plant with a capacity of 140 million standard cubic feet per day.
The Nam Phong field, discovered in 1981 and located 440km north-north-east of Bangkok, started production in 1990. It currently produces approximately 6.6 terajoules per day (TJ/d) gross, with Horizon’s net production at 4TJ/d.
Operating costs for the Nam Phong field are approximately $11.7/boe, excluding tax and royalties, with decommissioning costs for Horizon’s 60% interest estimated at less than $4m.
Production from Nam Phong is processed at the EMEPKI-operated gas stabilisation unit.
The transaction is subject to customary completion conditions, with the funding structure, along with expected cash flow from the fields, supporting Horizon’s distribution strategy.
