Horizon Oil Limited has released its 2025 Reserves and Resources Statement as of 30 June 2025, revealing key production and reserve updates across its operations in China, New Zealand, and Australia. The report indicates that Horizon’s net Proved and Probable (2P) reserves declined by 9%, from 9.9 million barrels of oil equivalent (MMboe) in 2024 to 9.0 MMboe in 2025. This reduction is largely tied to a production decrease of 1.6 MMboe, although a life extension project at the Maari field provided a partial offset with an addition of 0.8 MMboe through the transfer of contingent resources. Production performance for the year recorded a total of 1.6 MMboe, down from 1.9 MMboe the previous year. The decline was primarily driven by a natural drop in output from China’s oil production, which fell by 0.2 MMboe. Meanwhile, oil output in New Zealand and the combined oil and gas production at the Mereenie field held steady, buoyed by ongoing initiatives such as the water injection project at Maari and successful infill drilling at Mereenie. The technical details further outline that Horizon’s 1P reserves now include 2.6 million barrels of crude and condensate along with 18.0 petajoules (PJ) of Sales Gas. The 2P reserves are comprised of 3.9 million barrels of crude and condensate and 29.6 PJ of Sales Gas, totalling 9.0 MMboe. Additionally, the company’s 2C Contingent Resources have contracted by 8% to 12.3 MMboe, reflecting adjustments related to the Maari field life extension project and two smaller projects in China. A notable component of the announcement is Horizon’s pending acquisition in onshore Thailand, which will secure a 7.5% interest in the Sinphuhorm field and a 60% interest in the Nam Phong field, adding 3.9 MMboe of net 2P reserves from the acquisition effective as of 1 January 2025. Although these reserves are not yet booked, they represent a significant medium-term addition to Horizon’s portfolio for prospective updates. The technical rigor of the report is underscored by its adherence to the SPE Petroleum Resources Management System guidelines, with detailed reconciliations for 1P, 2P, and 2C estimates provided. These include production, revisions, transfers, and reserve extensions across all major asset areas. Market sentiment from the news appears mixed. The positive developments at Maari and the strategic move to acquire additional reserves in Thailand could be viewed as bullish for long-term growth and future production stability. However, the overall decline in reserves and a dip in production—particularly in the China portfolio—could signal caution for those focused on short-term performance, reflecting a more bearish angle. Investors, especially those new to trading, should note that while Horizon Oil Limited is actively strengthening its portfolio through development projects and acquisitions, the recent declines in reserves underscore the inherent challenges in sustaining production levels. These developments offer both potential rewards and risks, emphasizing the need for careful evaluation in the broader market context.