Horizon Oil Limited · ASX:HZN
Horizon Oil — Investor Presentation (May 2008)
41 slides from Horizon Oil's investor presentation, May 2008
Slide 1: Investor Presentation May 2008
HORIZON OIL LIMITED ABN 51 009 799 455 Investor Presentation May 2008 This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of the business and no assurance can be given by Horizon Oil Limited that its ex
Slide 2: Location Of Assets
Location Of Assets Investor Presentation May 2008
Slide 3: Horizon Oil Statistics
Horizon Oil Statistics This month Last $0.400 High $0.395 Low $0.260 Volume 31,099,434 12 Months Last $0.400 High $0.430 Low $0.210 Volume 173.1 million Fully paid shares 796.51 million Partly paid shares 2.5 million Employee options 31.8 million No. of shareholders 3,953 Market capitalisation $315
Slide 4: The Horizon Oil Team
The Horizon Oil Team NON-EXECUTIVE DIRECTORS RESPONSIBILITIES EXPERIENCE Fraser Ainsworth AM Chairman of Board, Chairman of 27 years in CSR’s resource & energy business, former MD of B.COMM, FAICD, FCPA Remuneration, Nomination and Delhi, former MD of SAGASCO, Founder & Executive Director of Disclos
Slide 5: Mission and Progress to Date
Mission and Progress to Date Mission To build a specialist Asian E&P company of +/- US$500 million value, that will be highly valued by the market and potential acquirors. Asset portfolio: balanced (E vs P), concentrated, material, focus on quality. Progress to date Maari field installation underway
Slide 6: World Oil Supply / Demand
World Oil Supply / Demand Forecast demand Possible non-conventional oil supply Forecast conventional oil supply Investor Presentation May 2008
Slide 7: Investment Highlights
Investment Highlights Strong reserves and resources position 14 – 16 mmbo 2P reserves (all oil) and resources of 17 mmbo + 357 bcf gas Re-rating expected as Maari nears first production US$8 million per month net cash flow to Horizon Oil before interest and tax at US$80 per barrel oil Further re-rat
Slide 8: Activity Schedule
Activity Schedule Investor Presentation May 2008
Slide 9: Recoverable Reserves and Resources (1)
Recoverable Reserves and Resources (1) Asset Location Gross 2P Reserves Horizon Oil Net 2P Reserves Oil (mmb) 1 Interest Oil (mmb) 1 % Development Maari field Offshore New (Moki formation) Zealand 50 - 56 10 5-6 Onshore Louisiana, Bayou Choctaw field USA 5 14 - 28.5 1 Pre-development Block 22/12 dis
Slide 10: Recoverable Reserves and Resources (2)
Recoverable Reserves and Resources (2) Asset Location Gross Unrisked Mean Horizon Oil Net Unrisked Mean Resources Potential Interest Resources Potential Oil (mmbo)1 Gas (bcf)2 % Oil (mmbo)1 Gas (bcf)2 Appraisal Maari (other zones and Manaia Offshore New 37 10 4 prospect) Zealand Block 22/12 (Wei 12-
Slide 11: Reserves, Resources and Exploration Potential
Reserves, Resources and Exploration Potential Net recoverable in millions of barrels of oil equivalent Net Reserves in Development and Net Resources Appraised for Development Awaiting Appraisal Maari (other zones + Manaia) Block 22/12 Wei 12- PRL 4 (Stanley) 4 mmbo 2 Block 22/12 Wei 7 mmbo 1 mmbo 12
Slide 12: Net Production Forecast
Net Production Forecast Maari on production in 2008… 12000 10000 8000 BOPD 6000 4000 2000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 M aari M aari O the r Z o ne s 2 2 /1 2 W e i 6 -1 2 S 2 2 /1 2 W e i 1 2 -8 W 2 2 /1 2 O the r D is c o ve rie s N e w B us ine s s …generating US$8 million per m
Slide 13: Maari Development – New Zealand
Maari Development – New Zealand Installation underway of a 50+ mmbo oilfield… …with 40 mmbo upside potential Investor Presentation May 2008
Slide 14: Maari Development Summary
Maari Development Summary Overall development concept:– 5 production / 3 injection horizontal wells with wellhead platform / FPSO production facilities FID capex budget US$365 million (including contingency). Current forecast cost to completion US$508 million US$40 million finance facility provided
Slide 15: FPSO - Raroa
FPSO - Raroa JU - MODU.- Ensco 107 =e r{)--) ‘Cue Taranaki Pty Ltd odd Energy}
Slide 16: Maari Installation Progress
Maari Installation Progress FPSO Raroa steaming into Wellington harbour, New Zealand, to undergo regulatory clearance Maari wellhead platform on location, in the process of jacking up the deck Raroa buoy going overboard the Toisa Porteus with anchors attached Investor Presentation May 2008
Slide 17: Maari Upside Potential
Maari Upside Potential Prospect Unrisked Prospect Mean Recoverable Potential Range (Gross) Reserves Potential OOIP (Gross) mmbo mmbo Maari M2A 20 – 30 12 Manaia Updip 35 – 140 25 Investor Presentation May 2008
Slide 18: New Zealand Manaia Prospect
New Zealand Manaia Prospect The Manaia Field was discovered by the Maui-4 well in 1970 which discovered an under-saturated oil accumulation in poor quality Mangahewa Fm sands that tested at 575 bopd. Two small hydrocarbon accumulations were also encountered within the Moki Fm (the main reservoir at
Slide 19: China 22/12 – Discoveries & Prospects
China 22/12 – Discoveries & Prospects 60+ mmbo recoverable reserves discovered... …development planning underway Investor Presentation May 2008
Slide 20: Wei 6-12 South Discovery
Wei 6-12 South Discovery Gross pay interval of 500 m in numerous reservoir sands with collectively 100 m of net pay (predominantly oil-bearing) Reservoir sands generally good quality, up to 25 m thick; DSTs over 3 main pay zones flowed at combined rate of 5,750 bopd Second sidetrack drilled 400 m to
Slide 21: Block 22/12 Development Planning
Block 22/12 Development Planning Stand-alone development concept Wellhead platform and FPSO with 20,000 – 25,000 bopd capacity at Wei 6-12S location Unmanned minimal structures at Wei 12-8W and Wei 12-8E hub facility FEED underway, FID mid 2008, construction 2008/09, on production early 2010 Develop
Slide 22: Phase 1 Wei 6-12 WHP and FPSO
Phase 1 Wei 6-12 WHP and FPSO Investor Presentation May 2008
Slide 23: Phase 2 Wei 6-12 WHP and FPSO and Wei 12-8W WHP tie-back
Phase 2 Wei 6-12 WHP and FPSO and Wei 12-8W WHP tie-back Investor Presentation May 2008
Slide 24: Phase 3 Wei 12-8E and Wei 12-2 WHP tie-back to Wei 6-12
Phase 3 Wei 12-8E and Wei 12-2 WHP tie-back to Wei 6-12 Investor Presentation May 2008
Slide 25: FPSO Candidate Ming Zhu
FPSO Candidate Ming Zhu Investor Presentation May 2008
Slide 26: Papua New Guinea
Papua New Guinea Gross 2P recoverable resources of 930 bcf gas and 38 mmb condensate… …development options emerging Investor Presentation May 2008
Slide 27: Stanley-1 Wellsite
Stanley-1 Wellsite Stanley Well Head Investor Presentation May 2008
Slide 28: Stanley – Surrounding Terrain
Stanley – Surrounding Terrain Investor Presentation May 2008
Slide 29: Stanley Seismic Line PRL4-07-101
Stanley Seismic Line PRL4-07-101 Stanley-1 NW SE Base Darai Top Ieru Top Toro Sst Basement Investor Presentation May 2008
Slide 30: New Business Focus Area
New Business Focus Area Investor Presentation May 2008
Slide 31: New Business Focus Area
New Business Focus Area Mongolia Strategic attributes of Japan focus area-: S Korea Strong oil and gas India China demand Taiwan Uncomplicated Bangladesh Myanmar Laos geological targets in productive fairways Thailand Philippines Cambodia Vietnam Good deal flow with INDIAN limited competition OCEAN
Slide 32: South East Asia Gas Demand
South East Asia Gas Demand 7000 6000 5000 4000 mmcfd 3000 2000 1000 0 T h a ila n d Java M a la y s ia V ie tn a m S in g a p o r e S u m a tr a 2005 2020 S o u r c e : W o o d M a c k e n zie E n e r g y M a r k e t S e r v ic e a n d S E A G A S Thai Average Gas Prices (Per PTTEP) 2005 2006 2007 U
Slide 33: Gulf of Thailand Prospects and Leads
Gulf of Thailand Prospects and Leads Oil Discovery Gas Fields / Discoveries Gas Discovery Gas pipeline Oil Lead Proposed Gas pipeline Gas Lead ~3 tcf Ubon Pattani Trough Malay Basin Sontaya-1 Mayura-1 Bussabong 5X 16-C 1 ~4 tcf Boondarik-1 Bua Luang-1 G10/48 18-C 1A THAILAND G11/48 Area ~7 tcf 0 200
Slide 34: Thailand Block G10 Prospect X
Thailand Block G10 Prospect X G10 G11 LEAD X • 4000 Acres; 10-80 MMBO Reserves Potential • Ubon-2, 25 km to North; • Tested 1720 BOPD from Oligocene; • 14-D-1X gas and oil shows 18 km to NNE; • 4-way dip closure over faulted structure; • Abundant shallow gas; • Edge of source rock present 8 km to N
Slide 35: Block G11 Boondarik Leads D and L
Block G11 Boondarik Leads D and L Boondarik Delineation Boondarik-1 Boondarik Structure The Boondarik structure called the ‘D’ Lead has a range of potential resources from 250-900 Bcf depending on total net reservoir thickness and quality. The adjacent ‘L’ Lead has further potential of 100-400 Bcf.
Slide 36: Gulf of Thailand – New Acreage
Gulf of Thailand – New Acreage Investor Presentation May 2008
Slide 37: Gulf of Thailand Prospects and Leads Inventory
Gulf of Thailand Prospects and Leads Inventory Block Area HZN Unrisked recoverable oil Unrisked recoverable interest potential gas potential (sq km) (%) Gross Net Gross Net (mmbo) (mmbo) (bcf) (bcf) G1/48 17,610 20 70 14 G3/48 11,800 20 40 8 G6/48 2,280 20 105 21 G10/48 18,780 25 163 41 G11/48 13,60
Slide 38: Investment Highlights
Investment Highlights Strong reserves and resources position 14 – 16 mmbo 2P reserves (all oil) and resources of 17 mmbo + 357 bcf gas Re-rating expected as Maari nears first production US$8 million per month net cash flow to Horizon Oil before interest and tax at US$80 per barrel oil Further re-rat
Slide 39: Horizon Oil vs Peers – 2009 Multiples
Horizon Oil vs Peers – 2009 Multiples 12 9.8 10 8 7.5 7.4 7.3 EV / EBITDA (X) 6 5.1 4.9 4.4 4 3.2 2.9 2.1 2 0 NXS AWE ARQ TAP ROC BPT AZA PSA HZN AED 20 19 18.7 17.9 18 16 14.2 14 12 PE (X) 10.7 10 9.3 8 6.9 6 5.5 4.3 4 2 0 NXS ARQ ROC AWE BPT PSA AZA HZN AED Source: UBS Investor Presentation May 20
Slide 40: Activity Schedule
Activity Schedule Investor Presentation May 2008
Slide 41: Please visit the Horizon Oil website
Please visit the Horizon Oil website www.horizonoil.com.au to see:- Detailed Investor Presentation Latest Quarterly Report Analyst reports on HZN Level 7, 134 William St, Woolloomooloo NSW 2011 Tel: +612 9332 5000 Fax: +612 9335 5050 exploration@horizonoil.com.au