The Company’s exploration, development and production activities are focused in Southeast Asia. The strong, long-lived cashflows from the Company’s interests in the Maari/Manaia fields, offshore New Zealand and Block 22/12, offshore China, will be applied to fund the Company’s future capital program. That program is directed to bring into production the Company’s substantial inventory of discovered reserves and contingent resources (~100 million barrels of oil equivalent) in fields in New Zealand, China and Papua New Guinea.
The Company has a conservative and highly selective exploration policy with specific focus on plays providing scale and upside. The identified best estimate prospective unrisked resources in the Company’s inventory (~78 million barrels of oil equivalent), together with the reserves and contingent resources provide shareholders with exposure to commodity price upside, especially oil price, and production growth.
The achievement of these strategic objectives may be affected by macro-economic and other risks including, but not limited to, China’s slowing growth, volatile commodity prices, exchange rates, access to financing and political risks. The speculative nature of petroleum exploration and development will also impact the Company’s ability to achieve these objectives; key risks of which include production and development risk, exploration and drilling risks, joint venture risk, and geological risk surrounding resources and reserves.
Horizon Oil has various risk management policies and procedures in place to enable the identification, assessment and mitigation of risks that may arise. Whilst the Company can mitigate some of the risks described above, many are beyond the control of the Company. For further information in relation to Horizon Oil’s risk management framework, refer to the Corporate Governance Statement.