Horizon Oil (ASX:HZN) announced that the Nam Phong joint venture has reached a final investment decision for the Nam Phong Booster Compressor Project, a strategic initiative aimed at enhancing gas recovery at the recently acquired Nam Phong field in Thailand.
The project involves installing a refurbished gas engine-driven compressor that will use treated field gas as fuel—a solution chosen for its cost-efficiency, faster delivery, and potential to unlock additional reserves.
Once operational by mid-2026, the booster compressor is expected to increase field output by at least 40%, depending on reservoir performance.
All required environmental and regulatory approvals have been secured, with Production Solutions appointed as the preferred vendor. Procurement and site preparation are now underway.
Horizon anticipates strong returns from the project, with rapid payback and a significant increase in gas production rates and volumes.
The company's share of development costs will be under US$1.5 million, financed from existing cash reserves and field production revenue.
Horizon CEO Richard Beament said, "This decision underscores our commitment to maximising value from our assets while supporting Thailand's energy needs. Executing this low-cost project just months after acquiring the asset demonstrates our team’s focus and the strength of our partnerships."
At the time of reporting, Horizon Oil's share price was $0.21.