Horizon Oil Limited reported quarterly performance results for the period ending 31 March 2025, highlighting consistent dividend distributions and steady operational performance across its key assets. An interim dividend of AUD 1.5 cents per share was paid on 24 April 2025, marking the fifth consecutive year of substantial shareholder returns – more than AUD 220 million has been distributed over the last five years. The company maintained production levels with total outputs of 407,778 boe produced and 400,112 boe sold, supported by increased production from both Maari and Mereenie assets. Revenue from production remained consistent at US$26.4 million, while net operating cash flow rose by 8.4% to US$17.8 million, underscoring the benefit of higher realized gas prices and lower cash operating costs, despite softer oil prices. The report also detailed technical achievements and operational updates. In the Mereenie region, development wells WM-29 and WM-30 were successfully brought into production early in the year, boosting field gas production by approximately 20% with sales volumes between 28 and 32 TJ/d. In contrast, the Block 22/12 asset experienced a natural production decline, which was anticipated ahead of planned infill drilling activities. Across its portfolio, Horizon Oil Limited continued to manage a robust hedging strategy – including 30,000 barrels of oil hedged at an average price around US$70 per barrel and long-term fixed price gas contracts for Mereenie – ensuring stable cash flows and mitigating commodity price risks. A significant strategic move was the material acquisition in Thailand through a share sale and purchase agreement executed with Exxon Mobil Corporation. Horizon Oil Limited, in a consortium with Matahio Energy, acquired a 7.5% working interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field. The deal, with a firm consideration of US$30 million (plus potential contingent payments of up to an additional US$7.5 million), is expected to boost production by over 2,000 boe/d. The acquisition is primarily funded by debt, with minimal impact on cash reserves, and provides access to a low-risk, cash-generating asset base while diversifying the company’s geographic exposure in Southeast Asia. Operational efficiencies were further evidenced by successful workover programs in Block 22/12 and Maari – where oil production saw a 10% increase – as well as ongoing drilling campaigns. The company’s balance sheet remains strong, with cash reserves of US$51.5 million and a net cash position of US$26.4 million at the quarter’s end. Capital investments during the quarter, totaling nearly US$5 million, were aimed at further enhancing production capabilities through infill drilling, workovers, and strategic deposits for the Thailand acquisition. Bullish sentiment stems from Horizon Oil Limited’s consistent dividend policy, its ability to generate improved cash flows even amid some production declines, and the strategic re-entry into the Thai market, which offers access to low-risk assets and promising growth potential. The robust hedging strategies and disciplined cost management provide additional reassurance for investors. Conversely, bearish considerations include the natural production declines observed in key assets, potential operational challenges such as aging infrastructure and upcoming ESP replacements at Maari, and the reliance on debt to fund new acquisitions, which could limit flexibility if market conditions change. Overall, the announcement reflects a measured approach to growth, balancing short-term operational stability with long-term strategic investments.