Horizon Oil Limited (HZN), along with its Mereenie Joint Venture partners, has entered into a binding Letter of Intent (LOI) with the Northern Territory’s Power and Water Corporation (PWC). Horizon Oil is an independent oil and gas exploration and production company with assets in Australia and Asia. This agreement aims to support the immediate commencement of early works for an accelerated drilling program involving two new wells and to promptly document and execute gas supply agreements. These agreements are consistent with conditional gas supply term sheets and will facilitate the sale of uncontracted firm gas production from Mereenie through to 2034.
The joint ventures will immediately initiate early works for the two-well drilling program. This includes ordering long-lead items, progressing civil works, and selecting a drilling rig, with drilling targeted to commence in mid-2026. The finalized ‘in-principle’ terms for long-term, firm gas supply under term sheets cover uncontracted firm gas production from the Mereenie field through to 2034, including additional production from the two-well program. These gas supply term sheets are currently non-binding and conditional, pending final internal approvals from each JV participant and PWC.
The intention is for all involved parties to formalise and execute binding Gas Sale Agreements (GSAs), consistent with these term sheets, by 20 February 2026. Under the LOI, arrangements have been agreed where the JVs can be reimbursed by PWC for costs associated with the drilling program’s early works if binding GSAs are not executed by the specified date. The intended supply arrangements are designed to quickly deliver significant new gas volumes to the Northern Territory, while also enhancing gas supply security for customers throughout the region.
Horizon’s CEO, Richard Beament, stated that this Letter of Intent marks a major step in unlocking additional, reliable gas supply for the Northern Territory and increasing gas supply from the Amadeus Basin. By commencing early works now and targeting drilling in mid-2026, Horizon Oil aims to bring new Mereenie volumes to market quickly, using existing field capacity. Formalising long-term GSAs consistent with the in-principle term sheets will underpin supply through to 2034, supporting the NT’s gas demand from the middle of next year.
