Horizon Oil's Mereenie Development Program: WM29 Success and WM30 Launch
HORIZON OIL LIMITED (HZN) Share Update January 2025 Wednesday 15th
Horizon Oil Advances Mereenie Development with Successful WM29 Completion
Horizon Oil Limited has announced the successful completion of the WM29 well in the Mereenie Development program and the commencement of drilling for WM30, marking significant progress in their efforts to increase gas production in the Northern Territory.
Instant Summary:
- WM29 well successfully drilled and cased, completion expected by end of January.
- WM30 well spudded on January 16, designed to increase gas production.
- Mereenie Development aims to supply additional gas under new government agreement.
WM29 Completion
Horizon Oil Limited has successfully completed the drilling of the WM29 well, the first in its Mereenie Development program. The well was drilled and cased across the Stairway and Pacoota-1 Formations, reaching a total depth of 1,326.3 metres TVDRT through the primary Pacoota-3 reservoir target. The completion of the WM29 tie-in is anticipated by the end of January, which will enhance gas production capabilities.
WM30 Drilling Commences
The company has also commenced drilling the WM30 well as of January 16, 2025. Positioned strategically to the west of WM29, WM30 is designed to further boost gas output from the Mereenie Field. The drilling program for WM30 incorporates insights gained from WM29, reflecting Horizon Oil's commitment to optimizing their operations and increasing efficiency.
Strategic Importance
The Mereenie Development program is crucial for Horizon Oil's strategy to supply additional gas volumes under a recently executed Northern Territory Government Gas Sales Agreement. This initiative is expected to significantly increase the gas rates from the Mereenie Field, benefiting both the company and its joint venture partners.
The successful completion of WM29 and the commencement of WM30 are likely to have a positive impact on Horizon Oil's stock, as these developments are expected to enhance production capacity and fulfill contractual obligations under the new gas sales agreement. This progress demonstrates the company's operational capabilities and strategic foresight, potentially boosting investor confidence.
Investor Reaction:
Analysts are likely to view these developments favorably, as they align with Horizon Oil's growth strategy and commitment to increasing gas production. The successful execution of the development program could lead to an uptick in stock value, contingent on the timely completion of the WM30 well and subsequent production increases.
Conclusion:
Investors should keep a close watch on the completion of the WM30 well and the resulting production levels. Horizon Oil's ability to meet its gas sales agreement obligations will be a critical factor in maintaining and potentially increasing its market position. The company's strategic advancements in the Mereenie Development program underscore its potential for future growth.