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HORIZON OIL LIMITED — Capital/Financing Update 2020
Mar 11, 2020
65085_rns_2020-03-11_b1d07953-79a5-4b12-ad0c-70d26eace39a.pdf
Capital/Financing Update
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Level 6, 134 William Street P +61 2 9332 5000 Woolloomooloo NSW 2011 F +61 2 9332 5050 Australia horizonoil.com.au
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12 March 2020
The Manager Company Announcements ASX Limited Exchange Centre
20 Bridge Street Sydney NSW 2000
OIL PRICE VOLATILITY UPDATE
Horizon Oil is well placed to manage its way through the current volatile oil price environment.
KEY POINTS
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Horizon Oil has a strong hedge position to mitigate against short term oil price volatility. It has 270,000 bbls of oil swaps covering the 6-month period to June 2020 at a weighted average price of US$68.35/bbl, net of credit charges. Based on lifting timings, March 2020 forecast oil sales are approx. 80% hedged at over US$69/bbl.
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The balance sheet continues to strengthen and the company remains on track to be in a net cash position by 30 June 2020.
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There is continued strong free cashflow generation - with cash operating costs over recent months remaining below US$20/bbl produced.
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Cash on hand is currently in excess of US$25 million.
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Horizon Oil’s debt facility is currently drawn to US$29.4 million with the next scheduled debt repayment of US$3.8 million not due until 31 December 2020.
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The company has limited near-term capital commitments, with all existing commitments for calendar year 2020, expected to be covered by current free cash flow generation.
HORIZON OIL’S CHIEF EXECUTIVE OFFICER, CHRIS HODGE, COMMENTED:
“Horizon Oil is fortunate to hold low cost, high margin production assets. When coupled with its robust balance sheet and favourable hedge position, it is well placed to manage the recent downturn in oil prices. With continued strong free cashflow generation, even at these low oil prices, the Company remains well positioned to pursue growth opportunities.”
Authorisation
This ASX announcement is approved and authorised for release by the Company Secretary.
More Information Kylie Quinlivan Horizon Oil Limited
T +61 2 9332 5000 [email protected]
Horizon Oil Limited ABN 51 009 799 455