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QUARTERLY REPORT PERIOD ENDING 31 DECEMBER 2020 ( ASX : HZN ] STRONG FUNDAMENTALS Production volumes of 1.4 million bbls during the 2020 calendar year with production for the December 2020 quarter of 342,026 bbls , 12 % higher than the prior quarter following successful workover activity at both Maari and Beibu . Sales of 1.3 million barrels for the 2020 calendar year at an average realised oil price of US $ 44.63 / bbl , inclusive of hedge settlements ; sales for the December 2020 quarter were 437,321 bbls which included a record Maari lifting in October of 126,326 bbls [ net ] . Revenue inclusive of hedge settlements of US $ 57.6 million ( ~ A $ 75 million ) for the 2020 calendar year with US $ 18.9 million generated for December 2020 quarter ( inclusive of hedge settlements ) . Cash operating costs for the 2020 calendar year reduced 19 % to US $ 15.35 / bbl ( including workover costs ] driven by cost reduction initiatives implemented in response to the changed economic conditions . Net operating cash flow of US $ 36.6 million ( ~ A $ 47.5 million ] for the 2020 calendar year ; net operating cash flow for December 2020 quarter of US $ 12.6 million . AUGMENTED BALANCE SHEET Continued strengthening of the Company's financial position , driven by low cost , high margin production at Maari and Beibu which continues to drive strong free cashflow generation . Increased net cash position to US $ 10.0 million at 31 December 2020 ( an increase in net cash from 30 June 2020 of US $ 9.5 million ) . Cash reserves of US $ 33.0 million on hand at 31 December 2020 . Execution of additional commodity hedging to further protect cashflows from commodity price volatility . At the date of this report , the Company had 300,000 bbls of oil swaps covering production to June 2021 at a weighted average fixed price of approximately US $ 50 / bbl . FOCUSED FOR GROWTH - Completion of the Horizon PNG portfolio sale with the cash consideration of US $ 3.5 million received during the quarter . Block 22/12 joint venture made a Final Investment Decision [ FID ] for the WZ12-8E development with fabrication of the facilities underway ; first production continues to be expected in Q1 CY2022 . Infill well program in Block 22/12 nearing completion with both wells successfully drilled and completions being run ; wells due to commence production shortly . 1 Net operating income after operating expenditure , excluding extraordinary items Note : Financial results contained in this quarterly are unaudited . HORIZON QUARTERLY REPORT | PERIOD ENDING 31 DECEMBER 2020 ( ASX : HZN ] | 1