The concession agreement is expected to be signed at a ceremony in Bangkok next month, Horizon said today.

The company’s subsidiary, Horizon Oil (Siam) will hold a 25% interest in the G11/48 concession along with wholly-owned subsidiaries of Pearl Energy (50% and operator) and Tana Oil & Gas (25%).

G11/48 is in the southern part of the Gulf of Thailand immediately west of the giant Bongkot field and the Malaysia-Thai joint development area (JDA), a prolific gas province.

Covering some 13,600 square kilometres, the concession is in the northern end of the Malay Basin. Bongkot has gas reserves of about 4 trillion cubic feet (Tcf), while over 7Tcf of gas have been discovered in the JDA.

Horizon said the concession allows the partners to explore for hydrocarbons over seven years and sets out an agreed minimum work program.

Chief executive Brent Emmett said the award is in line with the company’s objectives.

“The award of Block G11/48, on top of the recent award of neighbouring Block G10/48, is good news for Horizon Oil shareholders,” Emmett said.

“Our consortium now owns a commanding acreage position in two major petroleum producing trends, with a mix of oil, gas and condensate potential.

“This holding typifies Horizon Oil’s exploration objectives – it is a material acreage position (over 32,000sq.km) in a well-understood, relatively low risk fairway with large-scale targets, where operating conditions are benign, oil field services and infrastructure are abundant and where there is high local demand for both oil and natural gas.”

The company announced in December that it had been awarded Block G10/48, adjacent and west of G11/48.

Emmett said the existing seismic database, which has helped the company evaluate the prospectivity of both blocks, will be reprocessed this year and new seismic data acquired.

An exploration drilling campaign of at least four wells will follow, to begin in late 2007 or 2008, he said.