Horizon Oil's 2026 reserves statement reveals a 51% jump in net 2P reserves to 13.6 million barrels of oil equivalent, driven by strategic acquisitions and record production.
- Net 2P reserves rise 51% to 13.6 MMboe
- Cue Energy takeover adds 6.0 MMboe reserves
- Record FY26 production of 2.1 MMboe
- 2C Contingent Resources increase 61% to 19.8 MMboe
- 2U Prospective Resources surge 450% to 14.3 MMboe
Reserves Leap Following Strategic Acquisitions
Horizon Oil Limited (ASX:HZN) has reported a substantial 51% increase in its net Proved plus Probable (2P) reserves, climbing from 9.0 million barrels of oil equivalent (MMboe) at June 2025 to 13.6 MMboe as at 30 June 2026. This leap was largely fuelled by the acquisition of indirect interests in Thailand via MH Energy Thailand LLC and in Australia, New Zealand, and Indonesia through the takeover of Cue Energy Resources Limited. The Cue acquisition alone contributed 6.0 MMboe to the reserves tally.
The company’s reserves replacement ratio stands at approximately 200%, with additions of 6.7 MMboe offsetting 2.1 MMboe of production during the fiscal year. This strong replenishment rate signals robust asset growth through acquisitions and operational revisions.
Thailand Assets and Cue Energy Drive Growth
On 1 August 2025, Horizon completed the acquisition of a 7.5% effective interest in the Sinphuhorm gas and condensate field and a 60% interest in the Nam Phong gas field onshore Thailand. This deal added 3.9 MMboe of net 2P reserves at the effective date, with further in-field activities such as new pipeline construction and booster compression leading to an upward revision of 0.8 MMboe. Additionally, the June 2026 acquisition of Cue Energy, in which Horizon now holds a 57.03% controlling stake, contributed 2.6 MMboe to reserves, expanding Horizon’s footprint across multiple jurisdictions.
Record Production in FY26 Supports Reserves Growth
Fiscal year 2026 marked a record production year for Horizon, with net output reaching 2.1 MMboe, up from 1.6 MMboe the previous year. The production uplift was primarily driven by Thailand assets, which contributed 0.6 MMboe, offsetting a natural decline in China’s oil production, which fell by 0.1 MMboe to 0.6 MMboe. New Zealand’s oil production and the Mereenie oil and gas fields remained steady, supported by successful water injection and infill drilling programs.
Significant Increases in Contingent and Prospective Resources
Beyond reserves, Horizon’s net 2C Contingent Resources rose 61% to 19.8 MMboe, largely due to Cue’s interest in the Mereenie field and revisions in Thailand related to infill drilling and compression upgrades. Meanwhile, unrisked 2U Prospective Resources surged 450% from 2.6 MMboe to 14.3 MMboe, reflecting the identification of new prospects and leads, especially within Horizon’s Thailand licenses and the Mereenie field. These prospective resources carry exploration and development risks, but their scale highlights considerable upside potential.
Geographic and Asset Diversification
Horizon’s portfolio spans key producing regions including China’s Beibu block, Thailand’s Sinphuhorm and Nam Phong fields, Indonesia’s Mahato and Sampang PSCs, New Zealand’s Maari and Manaia fields, and Australia’s Palm Valley, Mereenie, and Dingo fields. The company holds controlling interests in MH Energy Thailand LLC (75%) and Cue Energy (57%), underpinning its proportional economic interest reporting. This diversification across five countries helps spread operational and geopolitical risks.
The reserves and resources estimates comply with the Society of Petroleum Engineers Petroleum Resources Management System (SPE PRMS) 2018 guidelines and have been certified by Horizon’s Chief Operating Officer, Gavin Douglas, lending credibility to the reported figures.
Bottom Line?
Horizon Oil’s reserves surge and record production fuel a stronger asset base, but the steep rise in unrisked prospective resources invites scrutiny of exploration outcomes ahead.
Questions in the middle?
- How will Horizon prioritise development of its expanded Thailand and Mereenie prospects?
- What impact will the Cue Energy acquisition have on Horizon’s near-term cash flow and capital expenditure?
- How resilient is Horizon’s production profile amid natural declines in legacy fields like China’s Beibu block?