Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (September 2012)
41 slides from Hibiscus Petroleum Bhd's investor presentation, Sep 5, 2012
Slide 1: Hibiscus Petroleum Berhad: Building Greater Value
Hibiscus Petroleum Berhad Building Greater Value Company Presentation 5 September 2012 Private & Confidential Creating Value Through Our Knowledge And Experience 1
Slide 2: Market Data Summary
Market Data Summary Market: Main Market of Bursa Malaysia Securities Sector Category: Industrial Products Stock Code: 5199 HIBISCS Market Capitalization (5 September 2012) Shares: 438 248 422 units x RM 1.66 = RM 718.7 mil Warrants – A (Traded): 314 236 022 units x RM 1.08 = RM 339.4 mil US$ 218 m
Slide 3: Agenda
Agenda A. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction 3. 3D Oil Transaction Private & Confidential Creating Value Through Our Knowledge
Slide 4: Agenda
Agenda A. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction 3. 3D Oil Transaction Private & Confidential Creating Value Through Our Knowledge
Slide 5: Business Approach & Investment Focus Going Forward
Business Approach & Investment Focus Going Forward $/boe, risked Prospective $/ boe, Risked Prospective Contingent Contingent Reserves Reserves Resources resources resources Resources Increased recovery? Increased recovery High Cost Cost Overstated Overstated overrun reserves? Discovery overrun dela
Slide 6: Hibiscus Petroleum: Company & Strategy Evolution
Hibiscus Petroleum: Company & Strategy Evolution Lime Petroleum Exploration Focus Qualifying Acquisition • Middle East / North • Based on Rex Technologies Africa / Europe Hibiscus Petroleum Hibiscus Oilfield Project Manager Berhad Services Early Production A Key Driver Development / Production Orien
Slide 7: Agenda
Agenda A. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction 3. 3D Oil Transaction Private & Confidential Creating Value Through Our Knowledge
Slide 8: Hibiscus Petroleum: Our First 14 Months
Hibiscus Petroleum: Our First 14 Months Additional 400% Concessions Date Major Events Mkt Cap: in Norway 3D Oil and and RAK VIC/P57 25 July Listed on the Main Market of 350% US$ 218 mil Shareholders Transaction 2011 the Malaysian Stock Exchange 5 Sept 2012 Approve Lime Deal 300% under Special Purpos
Slide 9: Hibiscus' Promise
Hibiscus’ Promise Creating Value Through Our Knowledge And Experience Private & Confidential Creating Value Through Our Knowledge And Experience 9
Slide 10: Capital Structure & Shareholder Profile
Capital Structure & Shareholder Profile Sources of Funds at IPO: July 2011 Shareholding Structure: Aug 2012 Shareholder % Shares Shareholder Profile IPO / Current 1 20.00% / Management Team 19.08% 2 9.57% / 9.13% Shareholder in public Total shares : listed oilfield services 418,047,922 provider Tota
Slide 11: Current Capital Structure On 5 Sept 2012
Current Capital Structure On 5 Sept 2012 As of 5 Sept 2012 Total number of shares in issue: 438,248,422 Total Number of Funds Received / To Be Warrants Received From The Exercise of Warrants RM’000 Total Warrants – A exercised as at 29 May 2012 20,200,500 10,100 Balance of Warrants-A yet to be exerc
Slide 12: Board Members 1
Board Members …. 1 Zainul Rahim bin Mohd Zain (Malaysian) Qualifications:: B.Sc. in Engineering (Mechanical), University of Western Australia. Chairman Experience: More than 30 years’ experience in the oil and gas exploration and production industry. (Non-Executive) Currently: Board member of Petron
Slide 13: Board Members 2
Board Members …. 2 Roushan Arumugam (Malaysian) Qualifications: M.A. in English Language and Literature, St. Catherine’s College, Oxford University, Masters Independent in Business Administration from Imperial College Business School and M.A. in Legal Studies, University of (Non-Executive) Bristol,
Slide 14: Board Members 3
Board Members …. 3 Tay Chin Kwang (Singaporean) Qualifications: Bachelor of Accountancy from the National University of Singapore. Certified Public Independent Accountant and fellow member of the Institute of Certified Public Accountants of Singapore. (Non-Executive) Experience: Over 22 years of exp
Slide 15: Key Management 1
Key Management …. 1 Joyce Vasudevan (Malaysian) Qualifications: B. Economics . (La Trobe University, Australia) and Certified Practicing Accountant (Australia). Chief Financial Experience: More than 20 years finance and operations experience. Previously: Ernst & Young, RHB Sakura Officer Merchant Ba
Slide 16: Key Management 2
Key Management …. 2 David Richards (Malaysian) Head Qualifications: B.Sc. (Hons) in Earth Science (UKM, Malaysia). Geoscientist Experience: 22 years of subsurface E & P experience. Previously: Geologist with Sun Oil, ExxonMobil, Carigali-Hess Operating Company and Newfield Malaysia. Expertise: Explo
Slide 17: Key Management 3
Key Management …. 3 Azleen Rosemy Ahmad (Malaysian) General Manager, Qualifications: B.Sc. in Actuarial Science and Finance (Wharton Business School, University of Pennsylvania, Corporate Finance USA) and Masters in Business Administration (University of Nottingham, United Kingdom). Experience: 20 y
Slide 18: Agenda
Agenda A. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction 3. 3D Oil Transaction Private & Confidential Creating Value Through Our Knowledge
Slide 19: Qualifying Acquisition Transaction
Qualifying Acquisition Transaction • On 25 October 2011, Hibiscus Petroleum Berhad announced that its wholly owned subsidiaries Gulf Hibiscus Ltd and Hibiscus Oilfield Services Ltd had signed several agreements on 24 October with the shareholders of Lime Petroleum PLC. • These transactions constitut
Slide 20: Deal At The Time Of Signing
Deal At The Time Of Signing • Investment is for: a 35 % equity stake in Lime Petroleum (IoM) Ltd. • Assets are in Oman, RAK, Initial Concessions Technology License Sharjah and (prior to Ras Al-Khaimah Rex Gravity© completion) Fujairah or Oman Rex Seepage© equivalent Sharjah Rex Virtual Drilling© •
Slide 21: Deal Evolution
Deal Evolution Lime QA Securities Shareholders Deal Transaction Commission EGM Closing Announcement Approval Approval 16 February 21 March 18 April 25 October 2011 2012 2012 2012 Signing Approvals & Completion Deal Package Conditions Precedent Deal Package Fulfillment • 3 Concessions in Middle East
Slide 22: Lime: Legal Structure
Lime: Legal Structure Exposure to 8 concessions in the Middle East and Europe Hibiscus Petroleum Schroder 100.0 % Berhad Dahan 59 % & Co Rex Oil & RAK Petroleum Banque Gas Ltd Gulf Offshore S.A. Hibiscus Ltd Ltd Zubara 100 % Sharjah Petroleum 8.60 % 56.40 % 35.0 % Offshore 100.0 % Ltd Hibiscus 64 %
Slide 23: Lime: Middle East Exploration Portfolio
Lime: Middle East Exploration Portfolio RAK OFFSHORE RAK ONSHORE SHARJAH OFFSHORE OMAN RAK OFFSHORE BLOCK - 50 Dahan Petroleum RAK ONSHORE Right Ally – 16 % Baqal Petroleum Schroder – 25 % Lime – 100 % Lime – 59 % OMAN BLOCK 50 SHARJAH OFFSHORE Masirah Oil Zubara Petroleum Lime – 64 % Lime – 100 % P
Slide 24: Lime: Norway Exploration Portfolio
Lime: Norway Exploration Portfolio PL 526 PL 518 Vågar/Karl Zapffe PL 503 PL 518 Lotos EP – 25% (OP) Dong – 40% (OP) PL 530 Edison -25% North Energy – 15% North Energy – 12% Sagex – 10% Heilo Skagen – 25% Discover -20 % Lime – 13 % Lime – 15 % PL 503 PL 526 PL 530 Valberget North Energy – 20% (OP) G
Slide 25: Lime Group: Estimated Resources
Lime Group: Estimated Resources Middle East Source: Aker Geo Net Unrisked Best Estimate Net Risked Best Estimate Recoverable Resources Recoverable Resources (mmboe) (mmboe) RAK North Concession 60.9 13.4 Sharjah Concession 426.0 55.0 Block 50 Concession 1,420.0 248.0 RAK Onshore Concession TBA TBA T
Slide 26: Rex Proprietary Technologies
Rex Proprietary Technologies Rex Oil & Gas, major shareholders of Lime Petroleum PLC, has developed three new unique technologies which seeks to reduce the: early risks associated with discovery of oil and gas (and its commercial impact) time to commercialize viable fields The technologies are:
Slide 27: Technology License: Geographical Coverage
Technology License: Geographical Coverage • 15 countries covering the most prolific petroleum basins which contain more than half of global proven oil reserves for a minimum of 3 years: + Bahrain + Egypt + Iran + Iraq + Jordan + Kuwait + Lebanon + Oman + Palestine (Gaza Strip and West Bank) + Qatar
Slide 28: Benefits of Rex Technologies
Benefits of Rex Technologies Conventional Work Program Rex / Lime Work Program Relative Activity Time Relative Activity Time Rex Cost (mths) Cost (mths) Technology Low Secure Concession 12 – 18 Low Secure Concession 9-12 • Gravity • Seepage Exploration 36 – 60 Commitment Exploration 12-24 • Virtual
Slide 29: Merits Of The Lime Transaction 1
Merits Of The Lime Transaction…..1 Large acreage position in known petroleum provinces which are diversified from geopolitical and geophysical standpoints. Middle East Norway Large position of net resources with more upside. US$ 50 mil of the purchase consideration will be infused into Lim
Slide 30: Merits Of The Lime Transaction 2
Merits Of The Lime Transaction …..2 Opportunity to learn and work with established operators. North Energy (Norwegian), Dong (Denmark), Gaz de France (France), Lotos(Polish) Due to the Norwegian tax regime Lime`s exploration expenses will be competitive going forward as 78% of the costs are re
Slide 31: Lime Group: Fully Funded Work Program
Lime Group: Fully Funded Work Program 2012 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Seismic Seismic Acquisition Oman Block 50 Acquisition Reprocessingofofexisting Reprocessing existing data data Processing, Interpretation & VD Processing, I
Slide 32: Agenda
Agenda A. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction 3. 3D Oil Transaction Private & Confidential Creating Value Through Our Knowledge
Slide 33: 3D Oil Transaction
3D Oil Transaction On 14 August 2012, Hibiscus Petroleum and 3D Oil , an ASX Independent E&P company, entered into a conditional Subscription Agreement for 30,963,000 new, fully paid ordinary shares in the capital of 3D Oil representing approximately 13.04% of the enlarged total issued share capital
Slide 34: Summary of the Proposed Transaction
Summary of the Proposed Transaction • As part of its portfolio balancing strategy, Hibiscus Petroleum, through Oceania Hibiscus and Carnarvon Hibiscus is proposing to: o subscribe 14.99% of the current share capital i.e. 30,963,000 shares at approximately AUD0.065 per share (based on 30-day VWAMP fr
Slide 35: Introduction to 3D Oil Limited
Introduction to 3D Oil Limited • Incorporated in July 2003 in Australia. Listed on the ASX on 22 May 2007 (raised AUD 44 million). • Principal continuing activities : Exploration and development of upstream oil and gas assets. • Owns an undeveloped proven oil field and exploration interests in the G
Slide 36: Australia: Gippsland Basin Background
Australia : Gippsland Basin Background • Australia’s most prolific oil & gas basin, close to major existing infrastructure, including established oil & gas refineries • Operations are made up of 18 platforms and several subsea tiebacks VIC/P57 • Over 30 fields including 3D Oil’s West VIC/P57 Seahors
Slide 37: Background Information on VIC/P57
Background Information on VIC/P57 • The VIC/P57 Exploration License is located in the northwest of the Gippsland Basin with the northern boundary some 10 kms offshore of the south-east Victorian coast and infrastructure. • The key assets within the permit are the (proven) West Seahorse Field, and tw
Slide 38: Merits of the Proposed Transaction 1
Merits of the Proposed Transaction … 1 Proposed Subscription Favourable terms as Hibiscus Petroleum was able to negotiate a payment in exchange for 3D Oil Shares, instead of the generally accepted practice of a deposit upon execution of an acquisition agreement as a commitment fee Capitalise on
Slide 39: Merits of the Proposed Transaction 2
Merits of the Proposed Transaction … 2 Utilisation of Farm-In Sum (AUD 27 MM) for initial work programme including drilling of up to 2 production wells within the West Seahorse Prospect. As the West Seahorse prospect is a discovered asset with proven reserves, drilling activities under the initial
Slide 40: Merits of the Proposed Transaction: Strategy Fit
Merits of the Proposed Transaction … 3 Strategy fit High Qualifying Acquisition Risk Profile • High Impact Advanced Lime Assets VIC/P57 Exploration to Build Value S Lime Transaction Development Assets • Proven Resources to Build Balance Sheet Production Assets Resilience and • Cashflow for Plan for
Slide 41: Thank You
Thank You Private & Confidential Creating Value Through Our Knowledge And Experience 41
Hibiscus Petroleum Berhad — Investor Presentation (September 2012) on 6ix