How Horizon Oil’s Thailand Acquisition Adds 2,100 boe/d and Expands Regional Reach

Strategic Expansion into Thailand

Horizon Oil Limited has officially completed its acquisition of a 7.5% stake in the Sinphuhorm gas field and a commanding 60% interest in the Nam Phong gas field, both located onshore in Thailand. This move marks a significant expansion of Horizon’s production portfolio, adding roughly 2,100 barrels of oil equivalent per day (boe/d) and nearly doubling its output to around 6,500 boe/d.

The acquisition was executed through a consortium arrangement, with Horizon acquiring a 75% interest in Exxon Mobil Exploration and Production Khorat (EMEPK), alongside Matahio Energy, which holds the remaining 25% and manages the operatorship of the Nam Phong field. The transaction, effective from 1 January 2025, was funded primarily through an amendment to Horizon’s existing debt facility with Macquarie Bank, enabling a swift close with minimal impact on cash reserves.

Reserves and Production Upside

At the time of acquisition, Horizon secured 3.9 million barrels of oil equivalent in proved and probable (2P) reserves, a substantial addition to its previously reported 9.0 MMboe. The acquired assets are producing steadily, with stable and predictable gas output contracted under a long-term sales agreement with PTT, Thailand’s national energy company, for use in regional power generation.

Horizon’s CEO Richard Beament highlighted the strategic value of the deal, emphasizing the low-risk nature of the assets and their alignment with Horizon’s capital distribution strategy. The fields’ concessions extend into the next decade, offering potential for sustained production through the 2030s. Moreover, opportunities exist to enhance value through life extension projects, infill drilling, and facility optimizations.

Partnerships and Regional Growth Platform

The acquisition re-establishes Horizon’s presence in Thailand and provides a platform for growth in Southeast Asia. Partnering with Matahio Energy, an independent operator with experience in the region, and PTTEP, the operator of Sinphuhorm, strengthens Horizon’s operational capabilities without requiring it to take on operatorship responsibilities. This approach plays to Horizon’s strengths as a non-operator investor, allowing it to focus on capital efficiency and risk management.

The transition of operatorship has been smooth, with all existing employees retained and new management systems implemented. The consortium has renamed EMEPK to MH Energy Thailand LLC to reflect the new ownership structure, signaling a fresh chapter for these assets.

Financial and Market Implications

Financially, the acquisition was structured to minimize upfront capital outlay, with an initial cash consideration of US$30 million offset by revenues generated from the effective date to completion. Additional contingent payments of up to US$7.5 million may be payable over six years, subject to certain conditions. The deal is expected to significantly increase Horizon’s net operating cash flow over the next five years and beyond, supporting its ongoing distribution commitments to shareholders.

With Thailand’s growing demand for gas and the strategic role of these fields in supplying power generation, Horizon’s entry into this market diversifies its production base and aligns with broader energy transition trends in the region.