In June this year Horizon made the decision to sell out of its onshore New Zealand assets after its best three prospects, Tuihu, Makino and Huinga proved non-commercial, Huinga frustrating the partners with over 100 metres of oil shows. The sale of its four permits boosted the company's bank balance by NZ$1 million.

This profit was supported by immediate success following a 10% farm in to PEP 38413, offshore Taranaki, just prior to the drilling of the Maari-2 appraisal well, in a deal costing $US1.5 million and $US500,000 in drilling costs.

Maari-2 intersected a net column of 41m of mobile oil in the primary objective, increasing oil-in-place estimates by around 37% while a net 17m intersection within three sands of the M2A zone has provided a possible secondary development. A highly lucrative turn around in fortunes.

Horizon has also been one of Australia's most active participants in offshore China. A block wide 3D survey was obtained for Block 22/12 which has outlined a number of prospective targets. Following a farmout of 10% the commitment has been made to drill two wells with an option to drill up to three appraisal wells.

The farm out successfully provided a carry through for Horizon's work program for 2003 of over $US1 million.

Unfortunately the successes in New Zealand and China have been tempered by a dry hole in Papua New Guinea at Bosavi-1. The company has however maintained an interest in the upcoming Kapul-1 well, which should spud in the first half of 2004.

The company also continues its search for interested partners in the Bayou Choctaw project in the United States. Horizon is intent on pursuing the development of the region, because of the prospectivity of the play and the high prices being paid for natural gas in North America. But it said not without a partner who is qualified to conduct operations in that area.