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QUARTERLY REPORT PERIOD ENDING 30 JUNE 2021 ( ASX : HZN ) HIGHLIGHTS Capital Management including capital return of 3 cents per share - An AUD 3 cent per share [ ~ US $ 35 million ) equal share capital return was announced on 23 July 2021 which is to be put to shareholders at an extraordinary general meeting ( EGM ) on 10 August 2021 . The on - market share buy - back was cancelled with a total of 20.3 million ORD shares having been bought back at an average price of AUD 8.7 cents per share . Production and Financial metrics within / exceeding FY21 guidance range - Quarterly production and sales volumes were steady with production of 342,815 bbls and sales of 316,378 bbls ; production and sales volumes for the 2021 financial year were both within guidance at 1.3 million bbls . Revenue inclusive of hedge settlements increased by 14.4 % to US $ 19.9 million for the quarter - resulting in FY21 revenue exceeding the top end of Horizon's guidance range at US $ 63.6 million . Cash operating costs for the quarter continue to be maintained well below US $ 20 / bbl produced . Net cash increased to US $ 31.7 million at 30 June , aided by the receipt of A $ 18.3 million on exercise of the 300 million outstanding options held by Samuel Terry Asset Management . Following cash receipts from late June liftings net cash is expected to increase to US $ 37 million by 31 July 2021 , ahead of the proposed capital return . Additional hedging implemented to protect cashflows from commodity price volatility covering approximately 50 % of forecast production to 31 December 2021. 300,000bbls are hedged using a mixture of swaps , collars and options with a weighted average floor price of US $ 69 / bbl , with the majority of instruments retaining exposure to higher oil prices . China Beibu Gulf WZ12-8E Development to produce first oil in Q1 2022 Fabrication of the facilities for the WZ12-8E development remains on schedule - with first oil anticipated in Q1 CY2022 . CHIEF EXECUTIVE OFFICER'S COMMENTARY This has been a highly significant and pleasing quarter for Horizon . Continuing strong oil prices has given us greater confidence in future cash flows , and with a one - off capital injection of A $ 18.3 million from the exercise of options , the Board has recommended a very significant capital return to our shareholders . We are pleased to be able to reward our loyal shareholders for their patience . Furthermore , as a result of the options exercise , Samuel Terry is now a substantial shareholder in Horizon with approximately 20 % and we welcome its representative Nigel Burgess to the Board . Looking ahead , encouraged by a strong oil price outlook , we are directing all our efforts and influence on how to maximise production and revenue from the producing fields and especially to the successful commissioning of the WZ12-8E field in China . We are optimistic for another good year ahead . Chris Hodge Chief Executive Officer HORIZON QUARTERLY REPORT | PERIOD ENDING 30 JUNE 2021 ( ASX : HZN ) | 1