• Binding letter of intent with Northern Territory's Power and Water Corporation
• Accelerated two-well drilling program at Mereenie field to commence in mid-2026
• Long-term gas supply agreements for uncontracted gas production through 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 two-well drilling program 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 also finalised 'in-principle' terms for long-term, firm gas supply under term sheets covering uncontracted firm gas production from the Mereenie field 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 new gas volumes from the Mereenie field are designed to quickly deliver significant new gas supply to the Northern Territory, while also enhancing gas supply security for customers throughout the region.

The two-well drilling program at the Mereenie field is expected to commence in mid-2026 and deliver additional gas production to the Northern Territory market.

The long-term gas supply agreements through 2034 will underpin ongoing secure energy supply for the Northern Territory.