How Horizon Oil’s New Financing Unlocks 2,000 boe/d in Thailand
Horizon Oil has finalized amendments to its senior debt facility with Macquarie Bank, enabling the acquisition of significant gas assets in Thailand that will add approximately 2,000 barrels of oil equivalent per day to its production.
- Amended senior debt facility with Macquarie Bank finalized
- Acquisition of 7.5% interest in Sinphuhorm and 60% in Nam Phong gas fields
- Transaction through consortium with 75% stake in ExxonMobil’s EMEPKI
- Facility includes multiple tranches supporting acquisition and development
- Expected production increase of ~2,000 boe/d and improved cash flow
Strategic Financing Milestone
Horizon Oil Limited has taken a decisive step forward in its expansion strategy by finalizing an amendment to its senior debt facility with Macquarie Bank. This financing arrangement is designed to fund Horizon’s acquisition of a substantial stake in two producing conventional gas fields in Thailand, a 7.5% working interest in the Sinphuhorm gas and condensate field and a 60% working interest in the Nam Phong gas field.
The acquisition is structured through a consortium, with Horizon set to acquire 75% of ExxonMobil Exploration and Production Khorat Inc. (EMEPKI), while Matahio Energy will hold the remaining 25% and manage operations at Nam Phong. This deal is expected to add around 2,000 barrels of oil equivalent per day (boe/d) to Horizon’s production portfolio, marking a significant boost to its output and cash flow.
Details of the Amended Debt Facility
The amended senior debt facility is reserves-based and structured into three tranches, each tailored to different funding needs and secured against specific assets. Tranche A increases the available debt on Horizon’s Mereenie asset from approximately A$40 million to A$50 million, supported by recent well results and new gas sales agreements, including a six-year contract with the Northern Territory government.
Tranche B1 provides up to US$15 million initially to fund the acquisition, secured against Horizon’s assets in Block 22/12, China, and amortizing through to the end of 2027. Tranche B2 offers up to US$10 million post-acquisition to support further development and general corporate purposes, backed by cash flows from the newly acquired Sinphuhorm interest and subject to additional diligence and security arrangements.
Implications and Outlook
Horizon’s CEO, Richard Beament, highlighted the importance of this financing milestone, emphasizing Macquarie Bank’s ongoing support and the financial flexibility it provides. The strong performance of the Sinphuhorm and Nam Phong fields, combined with robust oil-linked gas prices since the start of 2025, is expected to materially reduce the upfront cash consideration payable at completion.
Looking ahead, Horizon anticipates completing the transaction and drawing down the facility within the coming months, integrating these assets into its operations and advancing development plans. This move not only strengthens Horizon’s production base but also positions the company to capitalize on a significant pipeline of contingent resources.
Bottom Line?
With financing secured and production set to rise, Horizon Oil is poised for a transformative chapter in Southeast Asia.
Questions in the middle?
- What are the specific timelines and conditions for completing the acquisition?
- How will the increased debt impact Horizon’s overall financial leverage and credit metrics?
- What development plans are prioritized for the newly acquired Sinphuhorm and Nam Phong fields?
