OL4 and OL5, Mereenie, NT Australia

Horizon Net Working Interest (Production License) – 25.00% 

Asset Overview

  • NT Licences OL4 & OL5, Amadeus Basin, Australia, 25%
  • JV: NZOG (42.5%), Central Petroleum (25% – Operator), Cue Energy (7.5%)
  • ~250km west of Alice Springs
  • Conventional producing onshore gas asset with stable, long–term production
  • Currently 1,150 boepd net production ~ 7.5 TJ/d. 60 bopd during normal operation
  • Production licence to 2044, forecast to be economic to 2048+
  • Linked to both the high demand Northern Territory and East Coast gas markets via the AGP and NGP. Gas is sold to high-quality contract counterparties, including MacArthur River Mine, Power Water Company in the Northern Territory and South 32 and Shell in the East Coast gas market, with remaining sold into the spot market


Recent Highlights

  • Recent offtake agreement with Arafura Rare Earths subsidiary Arafura Nolans Project Pty Ltd to supply 27.4 PJ of gas (gross), commencing 2026 for a 3-year term, with a further 2-year extension subject to gas volumes being available
  • Planning underway to drill two development wells, subject to JV approval
  • On 12 March 2024 the Operator announced that the Flare Gas Recovery Compressor (FRGC) project was brought on stream, reducing field emissions by ~30%, and based on an export rate of 30 TJ/d, increasing the sales capacity by ~0.5 TJ/d
  • In August 2023 the Mereenie JV entered into an MOU with Twin Bridges LLC, a private US company, to progress the concept of helium recovery, targeting up to 60,000 scf/d of high value helium gas
  • 5 well recompletion program completed in June 2023
  • In September 2021 the production wells WM-27 and 28 were drilled and completed

Transaction Overview

  • In February 2024 Horizon announced the execution of a sale and purchase agreement with Macquarie Mereenie to acquire a 25% non-operated participating interest in the NT Mereenie oil and gas field
  • Upfront cash consideration of ~US$27.6 million (A$42.5 million), effective 1 April 2023, with deferred/contingent payments of US$5.8 million (A$9 million) payable over 24 months
  • Headline cash consideration fully funded from a new 5- year Macquarie Bank debt facility
  • Transaction enables the Company to maintain it’s current distribution strategy, while enhancing cashflows and diversifying and growing the production base


The field was discovered in 1964 and first production was in 1984.

The Operator, Central Petroleum, acquired a 50% interest from Santos in June 2015. The remaining 50% was acquired by Macquarie Mereenie in December 2016. In October 2021 NZOG acquired a 17.5% interest in the licence from Central Petroleum and Cue Energy a further 7.5%, with Central Petroleum’s interest reducing to 25%.

The field comprises OL4 and OL5 tenement areas (123 km2 and 158 km2 respectively). The field is ~40 km long and ~4km wide. The principal oil and gas reservoirs are the P1 and P3 units of the Pacoota Sandstone. Resources have also been identified in the Pacoota P4 unit and in the Stairway Sandstone.

A total of 73 wells have been drilled in the field. There are two processing facilities, comprising the Central Treatment Plant (CTP) and the Eastern Satellite Station (ESS).

The initial development focused on the oil rim with some gas exported and the remainder reinjected. The development turned to a gas export focus in 2018 when the Northern Gas Pipeline (NGP) was commissioned, linking the NT to East Coast gas markets. The facilities underwent an upgrade in 2018 increasing the gas processing capacity to 58 TJ/d.

Gas is exported via the Amadeus Gas Pipeline and the downstream NGP.

Crude oil and condensate is currently trucked to Port Bonython, in South Australia, prior to export by tanker, normally to refineries in Singapore.

Reserves and Resources as at 30 June 2023

Upon completion, the acquisition will increase Horizon’s net daily production by ~1,150 boepd, proved and probable (2P) reserves by 6.3 million barrels of oil equivalent as at 30 June 2023, an increase of ~129% compared to the Company’s 2P reserves position at 30 June 2023, and 2C (contingent resources) by 7.9 million barrels of oil equivalent, an increase of ~114% compared to the Company’s 2C contingent resource position at 30 June 2023.

Horizon Head Office

Level 4, 360 Kent Street
Sydney NSW 2000

T: +61 2 9332 5000


Email Alerts

Subscribe to our email alerts


New Zealand

NT, Australia

Annual Reports

Archive from 2005 to present

Horizon Share Price

Quote table and price charts

ASX Announcements

Archive from 2006 to present

Financial Reports

Quarterly and half yearly reports. Archive from 2008 to present

Investor Presentations

Archive from 2004 to present

Analyst Reports

Company Reports from expert analysts. Archive from 2018 to present

Horizon Head Office

Level 4, 360 Kent Street
Sydney NSW 2000

T: +61 2 9332 5000

Shareholder enquiries

For all share related enquiries please visit the Computershare website.


Subscribe to our mailing list

To stay up to date with our latest ASX announcements, media releases and other news .