I am just feeling my way around the site, so this will be a fairly brief post.

HZN is a low cost producer from fields in NZ, adn China; has cash in the bank; and is generating significant cash.at these oil prices,

Question is what are they going to do with the cash: acquisition and/or distribution.

HZN have been looking for an acquisition for around 12 months, and have stated that they will distribute cash of they can not find a suitable acquisition.

HZN recently announced a $0.014 capital return (subject to shareholder approval end of July).

Samuel Terry recently7 acquired a 19.90% stake in HZN, and has been apointed to the board.

Looking at the ST website (investment approach), I believe that it is likely that they would push for a cash harvesting and distribution strategy unles a knockout acquisition can be found in the relatively short term.

The NPV10 valuation would be around $0.20 at current oil price outlook.

There is additional potential in both NZ and China.

If they adopt a cash harvesting strategy, they could slash company costs resulting in and additional $0.03 ti NPV10.

Cash distribution under this scenario could be aound $0.06 in the next 15 months (2 FY results).

Of course the company would only last another 10 years or so, and the size of the distributions would decrease over time.

It is also possible that

a) another oiler would takeover HZN with a clean balance sheet and the cost cutting largely done
b) HZN acquires an asset at some point, perhaps if oil prices retreat.