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QUARTERLY REPORT PERIOD ENDING 30 SEPTEMBER 2021 ( ASX : HZN ] HIGHLIGHTS A 3 cent per share capital return Capital return of 3 cents per share ( ~ US $ 35 million ) paid to shareholders on 23 August 2021 . The company still awaits a draft ruling from the ATO concerning the tax treatment of the capital return . Strong Production and Financial metrics – benefiting from high oil price - - - Broadly flat production and sales volumes at 322,354 bbls and 313,368 bbls respectively . Increased revenue ( inclusive of hedge settlements ] by 13.9 % to US $ 22.7 million [ ~ A $ 30 million ) . Cash operating costs continue to be maintained well below US $ 20 / bbl produced at -US $ 16 / bbl . Net operating cash flow increased 20.1 % to US $ 17.5 million ( ~ A $ 23 million ) . Cash reserves were US $ 16.3 million ( net cash US $ 3.5 million ) at 30 September 2021 following the -US $ 35 million capital return . Cash receipts from late September liftings are expected to increase net cash to approximately US $ 11 million at the end of October . Current hedge position includes 160,000bbls covering the period to 31 December 2021 using a mixture of swaps and collars with a weighted average floor price of ~ US $ 69 / bbl . This covers approximately 50 % of forecast production with the majority of these instruments retaining exposure to higher oil prices up to US $ 80 / bbl . China Beibu Gulf WZ12-8E Development The project continues to progress well . The platform is expected to be on location by the end of this year with first oil expected during the first half of CY 2022 . CHIEF EXECUTIVE OFFICER'S COMMENTARY This has been another very positive quarter . The oil price is strong with a continued strong outlook . Production and cashflow were both solidly maintained thanks to the oil price and an ongoing low cost of production . We continue to be net cash despite the US $ 35 million capital return , and can look forward to WZ12-8E development project being successfully commissioned and coming on stream in the new year . I also look forward to welcoming our shareholders to the virtual AGM to held on Friday 19th November . Chris Hodge Chief Executive Officer 1 Net operating income after operating expenditure , excluding extraordinary items HORIZON QUARTERLY REPORT | PERIOD ENDING 30 SEPTEMBER 2021 ( ASX : HZN ) | 1