Horizon Oil FY26 Production Hits Record as Thailand Assets Lift Output

Horizon Oil (ASX: HZN) produced 2.15 million barrels of oil equivalent in FY26, a record for the company, as newly acquired Thailand gas fields offset natural decline across its older portfolio.

Underlying revenue rose 2% to US$107.2 million. Earnings before interest, tax, depreciation, amortisation, and exploration expenditure increased 3% to US$56.4 million, even with more than 130,000 barrels of crude sitting unsold at year-end because of deferred liftings at Maari and Block 22/12.

Operating cash flow climbed 32% to US$47.2 million. Statutory profit after tax was US$11.1 million. Cash operating costs held at about US$21 per barrel of oil equivalent across the portfolio.

The Sinphuhorm and Nam Phong gas fields in Thailand contributed 654,328 barrels of oil equivalent during their 11 months in Horizon's portfolio and generated US$23.0 million of production revenue at cash operating costs of about US$7 per barrel of oil equivalent.

At Sinphuhorm, the PH-14 well achieved first gas on 11 August 2026, about 50 days ahead of schedule, and was producing at a gross rate of 25 million to 30 million cubic feet per day, the company said. A booster compression project at Nam Phong is intended to increase production and reserve recovery.

Horizon finished FY26 with US$37.4 million of cash and US$11.3 million of net debt after paying US$33.1 million in dividends, repaying US$10.6 million of debt, and investing in the Thailand assets and its controlling stake in Cue Energy Resources.

Proved and probable (2P) reserves increased 51% to 13.6 million barrels of oil equivalent at 30 June. Acquisitions, revisions, and transfers added 6.7 million barrels of oil equivalent, delivering about 200% reserve replacement after FY26 production.

The board declared a final unfranked dividend of AUD 1.0 cent per share, taking FY26 dividends to AUD 2.5 cents per share.

"FY26 was a transformational year for Horizon as the group transitioned from an entity with a collection of producing interests into a scaled, diversified, cash-generative regional upstream platform with near-term growth options," chief executive officer Richard Beament said.

Horizon's control of Cue Energy expanded the group to nine producing assets across Thailand, Indonesia, Australia, New Zealand, and China, with current production of about 7,300 barrels of oil equivalent per day.

Near-term activity includes further Thailand production enhancements, appraisal drilling at Palm Valley, infill drilling at Mahato, production optimisation at Block 22/12, and development studies for future drilling at Maari and Mereenie.