• Binding Letter of Intent (LOI) with Northern Territory's Power and Water Corporation (PWC)
• Accelerated drilling program for two new wells at Mereenie
• Long-term gas supply agreements (GSAs) for uncontracted firm gas production from Mereenie through to 2034

Horizon Oil Limited (ASX: HZN) and its Mereenie Joint Venture partners have entered into a binding Letter of Intent (LOI) with the Northern Territory's Power and Water Corporation (PWC) to support the immediate commencement of early works for an accelerated drilling program for two new wells at the Mereenie gas field, and to promptly document and execute gas supply agreements consistent with conditional gas supply term sheets that will see uncontracted firm gas production from Mereenie sold through to 2034. The JVs will immediately begin early works for the two-well drilling program, including ordering long-lead items, progressing civil works, and selecting a drilling rig, with drilling targeted to commence in mid-2026. The JVs and PWC have finalised 'in-principle' terms for long-term, firm gas supply under term sheets covering uncontracted firm gas production from the Mereenie through to 2034, including additional production from the two-well program. The intention is for the parties to formalise and execute binding Gas Sale Agreements (GSAs), consistent with these term sheets, by 20 February 2026. The intended supply arrangements are designed to quickly deliver significant new gas volumes to the Northern Territory, while also enhancing gas supply security for customers throughout the region.

The two-well drilling program at the Mereenie gas field is expected to deliver additional firm gas production through to 2034.

The accelerated drilling program and long-term gas supply agreements will support the Northern Territory's gas demand from the middle of 2026.