The company’s December quarterly report, issued to the ASX yesterday, says the Maari subsurface development plan has been finalised, with the completion of detailed studies confirming the design of the planned waterflood scheme. Development concepts have been narrowed to two dry-tree options after subsea wellheads were rejected on risk and economic grounds.
The two dry-tree concepts involving either a jack-up Drilling and Production Unit (DPU) with a Floating Storage and Offloading (FSO) vessel or a minimal facilities wellhead platform with a Floating Production Storage and Offloading (FPSO).
The completion of detailed definition studies on these two options will enable a final concept selection to be made in the second quarter with FID around mid-2005.
The report also says a pre-feasibility study of the 12-8 West and East fields in Block 22/12, offshore China, has defined 12-8 West as the first candidate for development.
The joint venture has reached broad agreement with China National Offshore Oil Company (CNOOC) on the development concept and a more detailed feasibility study and development plan will be prepared in the first half of 2005, leading to development approval around mid-year.
Key elements of this agreement are design and fabrication of Block 22/12 facilities as part of CNOOC’s broader development programme and use of existing CNOOC development infrastructure in the Gulf of Beibu, which should result in lower cost and a more rapid path to first production.
Late last year Horizon raised approximately A$10 million of new capital through a share purchase plan. The new capital, and existing cash reserves of about A$4 million, will finance initial design and construction of the Maari and 12-8 West projects, should development of these projects be approved, as well as geophysical and geological interpretation of the offshore China Lei Dong field.
Melbourne-based Cue Energy recently bought a 5% stake in PEP 38413 - which contains Maari, Manaia and other prospects - and is planning to issue up to 60 million 30-cent shares to help fund development of the 50-million-barrel Maari field.
