Horizon profit triples on PNG sale

Profit triples: Gains on China success

Australia’s Horizon Oil has benefited from a partial sale of its assets in Papua New Guinea, posting a 269% increase in year-on-year profit.

The company made $12.8 million during the past financial year, up on the 2013 figure of $3.4 million.

This was mainly due to a $23.8 million gain from the sale of the PNG assets to Osaka Gas.

Horizon sold a 40% stake of its assets to a subsidiary of Osaka Gas for a sale price of $204 million.

The company and Osaka have formed a strategic alliance to commercialise the company’s certified reserves and contingent resources of 135 million barrels of oil equivalent and to develop its acreage.

Horizon said this was partially offset by higher expenses, financing costs and exploration write-offs against a seismic option to farm-into Block 09/05 in China.

Sales revenue over the year totalled $138.4 million, skyrocketing from the 2013 total of $48.07 million.

This jump is resultant from increase oil production associated with Block 22/12 in China and higher average oil prices.

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