In addition to oil production totalling 1.4 million barrels due to the Beibu Gulf project in China coming on stream in August, revenue increased by 169% to $US138.5 million from the previous four year average.
Horizon's annual report stated net cash from operating revenues in the financial year was $US75.1 million.
Oil and gas reserves and contingent resources increased by 4% to 95mmboe and successful drilling in Papua New Guinea more than replaced the reduction in reserves and resources resulting from production.
Despite the failure of the planned "merger of equals" with Roc Oil, Horizon said the current production forecast demonstrated the potential, company-changing impact of production from its reserves in PNG.
The chairman and CEO's report, produced by chairman Fraser Ainsworth and CEO Brent Emmett, said: "The last year has been, most notably, a period of transition for Horizon Oil - a transition from a company with modest, single sourced production, revenue and cash flows from operations, to a company with substantial, sustainable and dual-sourced production, revenue and cash flow streams.
"This cash flow will provide the foundation for funding the company's substantive portfolio of growth assets, particularly in Papua New Guinea ¬- a development pipeline that can reasonably be expected to deliver substantial value for shareholders in the future," the report continued.
Horizon expects that an increased level of production will continue through to the end of calendar year 2017 from the Maari and Beibu Gulf fields alone.
"The resultant cash flow, together with cash reserves, further payments anticipated from Osaka Gas and drawdown on debt facilities, as required, will be utilised to develop the substantive condensate and gas reserves in PNG," the report continues.
"The production forecast demonstrates the potential, company-changing impact of production from these reserves, especially the gas and, as shareholders would expect, developing these is the number one priority of your board and management."
Horizon's report to shareholders said a solid result was achieved for 2014 on all key measures - production, revenue, net cash flow and balance sheet strength while spending on exploration and development capital expenditure was down over the year, reflecting the company's "disciplined approach" to exploration expenditure.
Highlights from the year included the PNG Cabinet's approval of the Stanley gas/condensate development project and the required petroleum development licence and pipeline licence, which allowed the progression of the Stanley field.
The approvals triggered completion of the Osaka Gas Niugini sale agreement which resulted in Horizon transferring 40% of its interests in PDL 101, PRL 42, PRL 21 (Elevala and Ketu fields) and PPL 259 to Osaka Gas.
In addition to receipt of the remaining first instalment sale proceeds of about US$54 million, Horizon said completion of the agreement marked the formal beginning of a 60/40 strategic alliance between Horizon Oil and Osaka Gas, a leading global gas company and one of Japan's largest utility companies and LNG importers.
"The financial year 2014 has seen a transition to a company with substantial diversified production and cash flows," the report stated.
"Operating cash flows for the group are expected to increase in FY 2015, barring unforeseen events.
"Oil production from the Group's New Zealand operations is expected to ramp up during the year to the operator's forecast levels of 20,000bopd gross - more than double current production levels.
"While production from the group's China operations is expected to decrease due to natural reservoir decline, revenue from China is expected to be maintained as the group's share of production will increase by way of cost recovery under the provisions of the petroleum contract."
Based on the production forecast, Horizon expects the increased level of production to continue through to the end of calendar year 2017 from the Maari and Beibu Gulf fields alone.
"The resultant cash flow, together with cash reserves, further payments anticipated from Osaka Gas and drawdown on our debt facilities, as required, will be used to develop the substantive condensate and gas reserves in PNG," the report continued.
"The production forecast demonstrates the potential, company-changing impact of production from these reserves, especially the gas and, as shareholders would expect, developing these is the number one priority of your board and management."
