Production volume: 1.9 million barrels, up 44%.

Revenue: $152.1 million USD.

Cash operating costs: <$20 per barrel USD.

NPAT of $43.9 M USD, up 80%.

Reserves upgrade @ Block 22/12. 2P reserves fell by 0.9 million barrels. However, 2C contingent resources increased by 0.8 million barrels to 6.9 million barrels.

Minimal hedging of 40 000 barrels per annum @ $83.4 USD per barrel.

Unfranked dividend distribution of 2.0 cents.

DISC: HELD

Sales: median guidance of 1.90 mBBL

Revenue: median guidance of USD $165 million

EBITDAX median guidance of US $110 million.

Assuming NPAT is 36% of EBITDAX (as per H1), NPAT of USD $40 M or about $60 M AUD.

$60 M AUD =3.5 cents per share.

@ 16 cents per share, that is an EV/NPAT of 4.3.

RISKS: Oil price - global recession is the key risk. The recession may be 6-12 months away, however, there are signs the credit cycle is turning, which may bring this forward......

Key takeaways:

• Production volume up 40% over PCP.
• 2022 calendar year production up 18% on prior year

This indicates strong production volume increase in H1 FY 2023, providing good momentum into H2.

• H1 revenue up 93% to $75.7 M USD @ net realised price of $94.55 /bbl
• Cash operating costs just $16/bbl US.
• EBITDAX of $52.2 M USD for HY - 87% increase on prior year.
• Net cash of $24.8 M USD.
• NPAT of $19 M USD ($28 M AUD) - 1.67 cents per share - annualised PER <5.
• Dividend of 1.5 cents per share.
• increase reserve by 750 000 barrels.

DISC - HELD

Key Takeaways:

1) Production volume up 18.9% on prior quarter.

2) Revenue up 4.7% on prior quarter, with realised oil price of $102 USD / barrel.

3) Operating cashflow up 4.6% to $34 million USD. That is an operating cashflow margin of 80%, and equates to 3 cents per share.

4) Cash operating costs of $19.3 /bbl USD.

5) After the 20% distribution to shareholders this month, HZN has a net cash position of $29.8 million USD (circa $40 million AUD).

DISC - HELD

Horizon Oil reported infill wells completed, and Block 22/2 oil production on October 24 was 15337 bopd (Horizon share: 4133 bopd). Horizon Oil FY2023 production targets for Block 21/2 are 3234 bopd, so Horizon Oil on track to beat targets..

DISC - HELD.

The Biden Administration has reportedly planned to begin re-stocking the the Strategic Petroleum Reserve at oil prices at or below $80 USD barrel.

The Biden administration has been de-stocking the SPL to contain oil prices. Currently, the SPR is about 200 million barrels below pre-2021 levels.

HZN announced Block 22/12, WZ12-8E Phase 1 has been a success, with Block 22/12 on Sept. 25 @ 14486 bopd. This is well in excess of the 2023 production forecast of 12000 bopd.

The recovery from 3 phase 2 production wells is estimated to be 200 000 barrels of oil @ US$7.5 million capex (or $37.5 USD / barrel).

Although it is early days, $HZN appears to be well on track to exceed the 2023 production target of 1.52 million barrels.

DISC - HELD