• Acquisition of 3.9 MMboe of 2P Reserves in Thailand
• Positive cash flow generation from stable, predictable gas production
• Diversifies production base and provides platform for growth in Thailand

Horizon Oil Limited ('Horizon') has announced the execution of a share sale and purchase agreement to acquire a 7.5% working interest in the Sinphuhorm conventional gas and condensate field, and a 60% interest in the Nam Phong conventional gas field, both located onshore Thailand. The acquisition will be made through one of Horizon's wholly owned subsidiaries, Horizon Thailand Investments Pty Limited, and will be funded primarily through debt financing. The headline cash consideration for the 75% holding in Exxon Mobil Exploration and Production Khorat Inc. (EMEPKI), which holds the interests, is US$30 million, with up to an additional US$7.5 million in contingent payments over the next six years. The transaction provides Horizon with access to 3.9 MMboe of 2P Reserves as of January 1, 2025, at an attractive acquisition cost of ~US$7.7/boe. The assets are expected to generate positive cash flow from stable, predictable gas production of approximately 2,000 boe/d net to Horizon, complementing and diversifying the company's existing production base. The acquisition also establishes a low-cost platform for growth in Thailand and Southeast Asia, with Horizon partnering with PTTEP and Matahio Energy as operators. The transaction remains subject to customary completion conditions.

The acquisition is expected to meaningfully increase Horizon's net operating cash flow over the next 5+ years and provide a substantial production base beyond the end of the decade. The acquired assets are expected to increase Horizon's net daily production by ~2,000 boe/d and Proved and Probable (2P) reserves by 3.9 million barrels of oil equivalent as at 1 January 2025.

The acquisition provides Horizon with further diversification into gas production in Thailand, a country with growing gas demand. The assets offer potential for value enhancement through life extension, infill drilling, facility upgrades, and optimizations, as well as additional opportunities in both the Sinphuhorm and Nam Phong fields.