Page 1

QUARTERLY REPORT PERIOD ENDING 31 MARCH 2021 ( ASX : HZN ] HIGHLIGHTS Production volumes rose 1 % to 345,408 bbls . Sales volumes decreased 28 % to 315,848 bbls with the reduction entirely due to the timing of oil liftings . Revenue inclusive of hedge settlements was also impacted by the timing of oil liftings and decreased by 8 % to US $ 17.4 million . Net cash increased to US $ 13.2 million at 31 March 2021 and following the cash receipts from late March liftings is expected to increase to approximately US $ 19 million by 30 April 2021 . The two well infill drilling program in China Block 22/12 was successfully completed exceeding pre - drill expectations . A workover to the Maari MR6A well in NZ commenced and is progressing well with the potential to restore up to 1,000 bopd gross . Fabrication of the facilities for the WZ12-8E development is on - track with planned first production Q1 CY2022 . Capital management initiatives commenced with an on - market share buy - back of up to 100 million shares . Currently 15.6 million shares have been bought back at an average price of AUD $ 0.087 / share . In addition , an off - market unmarketable parcel buy - back was completed resulting in the acquisition of 2.7 million shares being bought back at a price of AUD $ 0.083 / share . Additional hedging was put in place to further protect cashflows from short term commodity price volatility . The Company now has 160,000 bbls of oil swaps covering production to June 2021 at a weighted average fixed price of US $ 54.48 / bbl . CHIEF EXECUTIVE OFFICER'S COMMENTARY This was another strong quarter for Horizon , the result of continued firming of the oil price , increased production levels , and low cash operating costs . As a result , the Company share price has increased by nearly 50 % since the start of 2021 . We continue to work closely with our joint venture Operators to identify incremental value - adding projects - aimed at keeping our field production as high as possible . In addition , we are pleased to report that there have been no accidents or incidents at our producing operations . This is despite intense activity such as the fabrication of the WZ12-8E platform , infill drilling at Beibu and a technically challenging workover at Maari . Our respective Operators are to be commended . The various capital management initiatives announced during the quarter have been successfully implemented and were a significant milestone in the evolution of the Company . The off - market unmarketable parcel buy - back was concluded swiftly and allowed approximately 1,000 ( ~ 20 % ) of Horizon's shareholders an opportunity to sell and realise their shares without incurring brokerage and other costs . Furthermore , the on - market buy - back is progressing well with 15.6 million shares bought back to date . We continue to focus on strategies which can achieve growth and value for the company - and have reviewed several possibilities which could achieve that objective . This remains a priority . Chris Hodge Chief Executive Officer HORIZON QUARTERLY REPORT | PERIOD ENDING 31 MARCH 2021 ( ASX : HZN ] | 1