SYDNEY: Horizon Oil Limited announced Tuesday it has agreed to acquire a 75% stake in Exxon Mobil Exploration and Production Khorat Inc. (EMEPKI), giving it a 7.5% working interest in Thailand’s Sinphuhorm gas field and a 60% interest in the Nam Phong gas field. The deal, valued at $30 million, is part of a consortium with Matahio Energy, which will acquire the remaining 25% stake in EMEPKI.
The acquisition, set to be finalized in the coming months, will provide Horizon with access to low-risk, gas-producing assets in onshore Thailand. The company expects the deal to increase its net daily production by approximately 2,000 barrels of oil equivalent (boe/d) and add 3.9 million barrels of oil equivalent (MMboe) to its proved and probable reserves as of Jan. 1, 2025.
Horizon CEO Richard Beament described the assets as “excellent additions” to the company’s portfolio, highlighting their potential to sustain production levels into the 2030s. The acquisition is expected to generate positive cash flow, with minimal impact on Horizon’s existing cash reserves due to the effective date of Jan. 1, 2025, and proposed debt funding.
The Sinphuhorm field, located 500 kilometers northeast of Bangkok, has been producing since 2006 and is expected to continue generating stable gas production. The Nam Phong field, discovered in 1981, has seen declining production but remains a valuable asset with low operating costs.
The deal is part of Horizon’s strategy to diversify its production base and re-enter the Thai market, where it previously operated between 2006 and 2008. The company will partner with Matahio Energy, which will manage the Nam Phong field on behalf of the consortium.
Horizon plans to fund the acquisition through an amendment to its existing debt facility with Macquarie Bank, providing up to $22 million in additional debt capacity. The company also anticipates contingent payments of up to $7.5 million over the next six years, subject to certain conditions.
The transaction remains subject to customary completion conditions and final documentation. Horizon expects the deal to enhance its cash flow and provide a platform for future growth in Southeast Asia.