Horizon Oil earns high levels of free cash flow, targeting US$25-35m in FY22, from interests in two oil projects, one in the Beibu Gulf in China and the other in the Maari Field in New Zealand. Horizon’s effective cost for its share of the oil is less than US$20 a barrel. Recent workovers have improved production at both projects. Horizon has been steadily returning cash to shareholders and has net cash on the balance sheet. We see Horizon Oil benefiting from the higher oil price environment we’ve moved into as well as a new well to be drilled in the Beibu Gulf in early 2022 in an area called Weizhou 12-8, where there is potential for more discoveries.