Key highlights

  • Horizon announced on 9 September 2026 that the Nam Phong Booster Gas Compressor entered service on 4 September 2026.
  • Total field sales are approximately 10.3 TJ/d gross, an increase of 84% compared with average sales before start-up.
  • Thailand’s contribution to Group production moves from about 2,000 boepd to about 2,500 boepd, under an oil-linked gas sales contract.

Horizon Oil Ltd (ASX:HZN) shares were changing hands at $0.205, up 2.50%, during the Trading session on 21 October 2026. Across the broader market, the S&P/ASX 200 Energy [XEJ] index stood at 11,167.20, a gain of 0.014% (1.60 points), while the S&P/ASX 200 [XJO] was at 8,806.90, lower by 0.11% (10.00 points), as at 2:32 pm GMT+11. In Commodity markets, Brent Crude rose 0.60% to US$109.48 per barrel as tensions in the Middle East involving Iran, Saudi Arabia and Yemen’s Houthis persisted, and a reported fall in US oil inventories pointed to tighter Supply conditions. Horizon is an Australian-listed oil and gas company with interests in Asia-Pacific, including the Nam Phong gas field in Thailand.

What Horizon Oil does

Horizon Oil Limited is a Sydney-based oil and gas exploration and production company with interests in the Asia-Pacific region. Its Thailand operations were expanded through the Acquisition of the Nam Phong asset in August 2025. The Nam Phong gas field sits within Block E5, and Horizon holds an effective 60% interest in the field through MH Energy Thailand.

Gas sales from Nam Phong are made under a long-term oil-linked gas sales contract, which means the realised price is linked to oil prices.

Booster gas compressor commissioning

In an ASX announcement dated 9 September 2026, Horizon stated that the Nam Phong Booster Gas Compressor (BGC) project had been successfully commissioned and started up. The BGC entered service on 4 September 2026, completing a development project designed to reduce system backpressure, improve well deliverability and enhance gas recovery from the mature field.

The project was sanctioned in January 2026 following the August 2025 acquisition of the Nam Phong asset. It uses a leased gas engine-driven booster compressor, and the company stated that it was delivered safely, on time and below budget.

Initial operating results

Initial operating results were described as highly encouraging. Total field sales are currently approximately 10.3 TJ per day on a gross basis, an increase of 84% compared with average sales before compressor start-up. On Horizon’s effective 60% interest, Thailand’s contribution to Group production moves from about 2,000 boepd to about 2,500 boepd. The company said that, given recent high oil prices, the higher volumes are expected to translate into higher Revenue and Cash Flow for the joint venture because of the oil-linked pricing.

Block E5 participants

The participants in Block E5 (Nam Phong) are MH Energy Thailand, which is the operator, with 80%, and PTTEP with 20%. MH Energy Thailand is 75% owned by Horizon and 25% owned by Matahio Energy, which manages operations on its behalf. The release acknowledged support from PTTEP and Thailand’s Department of Mineral Fuels through the approval, construction and commissioning process.

Project timeline and background

Horizon acquired the Nam Phong asset in August 2025, sanctioned the compressor project in January 2026 and brought it online on 4 September 2026, a period of about seven months from sanction to service. The company stated that the compressor project was designed to unlock additional reserves using a leased gas engine-driven booster compressor.

Because Horizon holds a 75% interest in MH Energy Thailand, which holds 80% of Block E5, its effective interest in the Nam Phong field is 60%. The announcement was approved and authorised for release by the Company Secretary on 9 September 2026.

The release does not give production guidance, Capital cost figures or revenue estimates for Nam Phong, so the quantified information is limited to the 84% increase in field sales and the move in Thailand’s contribution to Group production.

Sector context

Oil-linked gas contracts tie revenue to crude benchmarks, and Brent was at US$109.48 per barrel during the session, up 0.60%, amid Middle East tensions and a reported draw in US inventories. The S&P/ASX 200 Energy index was at 11,167.20. Mature gas fields commonly use compression to reduce backpressure and extend recoverable volumes, which is the purpose stated for the Nam Phong project.

In oil-linked gas contracts, prices are typically tied to a crude benchmark through a formula, and changes in oil prices may not flow through immediately; the release does not set out the formula for Nam Phong. Block E5 is held with PTTEP as a 20% participant, and operations take place under Thai regulatory approvals.

Risks and uncertainties

The release reports initial operating results only, and field rates can change as the reservoir and equipment perform over time. The compressor is leased and the field is mature, so volumes and recovery depend on reservoir behaviour. Revenue from Nam Phong depends on oil prices through the contract formula, which can fall as well as rise, and operations are located in Thailand under approvals and regulation by PTTEP and the Department of Mineral Fuels. The announcement does not quantify revenue or cash flow.

Catalysts to watch

Items to watch include sustained field sales rates following compressor start-up, the effect of oil-linked prices on Nam Phong revenue, Horizon’s next quarterly report, and any further low-cost development opportunities across its recently acquired assets.

Final word

Horizon’s 9 September 2026 announcement confirmed that the Nam Phong compressor is online and that field sales and Thailand production increased following start-up. Subsequent quarterly reports will provide data on how rates and revenue develop.