All necessary preparations for the forthcoming Beibu Gulf drilling program have now been made with the Horizon Oil anticipating the arrival of the jack-up drilling rig on location in Block 22/12 in mid-February.

The drilling program will evaluate the 12-7 prospect and appraise the 12-8-2 discovery. Consulting firm RISC has evaluated the 12-7 prospect to have a mean unrisked potential of 43 mmbo (6.3 mmbo Horizon Oil share), while the P50 potential reserves of the 12-8-1, 12-8-2 and 12-3-1 discoveries have been evaluated as being 6.3 mmbo net to Horizon Oil. The rig has been contracted to drill up to a further three appraisal wells dependant on the results of the two firm wells.

Subsurface and surface engineering studies for PEP 38413, Offshore Taranaki Basin, Maari Field are progressing for the development of the field and the definition of the development concept is at an advanced stage.

The key element of the development scheme is the floating-production-storage-offtake vessel (FPSO) which has received strong expressions of interest from a number of potential suppliers.

A geotechnical survey to obtain seabed samples over the Maari field is planned for the first quarter 2004. These samples will provide valuable data on the nature and strength of the seabed sediments over the field; data which is necessary to define appropriate anchoring and/or piling requirements for the field development.

Horizon Oil expects front-end engineering and design will commence later in the first quarter of 2004. The company has evaluated P50 technically recoverable reserves of 44 mmbo in the main Moki formation, 4.4 mmbo net.

The company's growth over the last year has also resulted in a name change from Horizon Oil NL to Horizon Oil Limited.