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Horizon Oil Limited ( (AU:HZN) ) has shared an update.
Horizon Oil Limited has confirmed that its Letter of Intent with the Northern Territory’s Power and Water Corporation for a new Mereenie gas sales agreement has lapsed without the parties reaching replacement terms, although the existing gas supply contract between them remains in force until 2030. The failure to secure a new deal has led the Mereenie Joint Venture to suspend plans for two additional infill wells, cutting Horizon’s forecast 2026 capital expenditure by about USD 5 million, while keeping wells ready to proceed at short notice and shifting its focus to marketing and contracting gas with other market participants.
The company emphasised that advanced well planning and secured long-lead items and drilling contracts will allow rapid reactivation of the infill program if market conditions or gas contracting outcomes improve. By redirecting efforts toward securing commercially acceptable gas sales arrangements with alternative buyers, Horizon aims to preserve capital in the near term while maintaining operational flexibility and protecting its long-term position in the regional gas market.
More about Horizon Oil Limited
Horizon Oil Limited is an Australian-listed energy company focused on oil and gas exploration and production. The company supplies natural gas to customers in the Northern Territory, including the Power and Water Corporation, under long-term contracts that support regional energy needs and underpin its upstream development strategy.
YTD Price Performance: 29.53%
Average Trading Volume: 3,079,464
Technical Sentiment Signal: Buy
Current Market Cap: A$406.9M
See more insights into HZN stock on TipRanks’ Stock Analysis page.