Horizon Oil Limited · ASX:HZN
Horizon Oil — Wilson HTM Energy Conference 2010
34 slides from Horizon Oil's conference presentation, Apr 20, 2010
Slide 1: ASX cover letter: Presentation at Wilson HTM Energy Conference
For personal use only 20 April 2010 The Manager, Company Announcements Australian Securities Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) PRESENTATION AT WILSON HTM INVESTMENT GROUP ENERGY CONFERENCE 20 APRIL 2010 Please find attached the presentation to be mad
Slide 2: Wilson HTM Energy Conference 2010
HORIZON OIL LIMITED ABN 51 009 799 455 Wilson HTM For personal use only Energy Conference 2010 20 April 2010 Brent Emmett CEO This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of the business and no a
Slide 3: Investment Strategy
Investment Strategy For personal use only § Distinct southeast Asian geographic focus § Strong, long-lived cashflows from Maari field, offshore New Zealand, to fund future capital program § Substantial inventory of discovered reserves and resources to bring into production with minimal exposure to g
Slide 4: Asset Location – Focus on SE Asia
Asset Location – Focus on SE Asia For personal use only Productive fairways, mature operating environment … …strong demand for oil and gas 3
Slide 5: Horizon Oil Shareholder Distribution
Horizon Oil Shareholder Distribution For personal use only Register strengthened over 2009… SHARE PRICE HISTORY TRADING STATISTICS …HZN admitted to ASX 300 Index 4
Slide 6: Reserves and Resources
Reserves and Resources For personal use only Net recoverable in millions of barrels of oil equivalent – total 94 mmboe RESERVES RESOURCES 5
Slide 7: Net Production Forecast
Net Production Forecast For personal use only 6
Slide 8: Maari Development – New Zealand
Maari Development – New Zealand For personal use only Installation complete and production underway… Maari / Manaia: HZN 10% OMV 69% (Op) Todd 16% CUE 5% 7
Slide 9: Maari Development – Features
Maari Development – Features For personal use only § Production permit through December 2027 with ability to extend § Design plateau production rate 35,000 bopd § Wellhead platform allows well intervention without need to import a rig § Workover rig and coiled tubing unit permanently on platform or
Slide 10: Maari Upside Potential – Focus on Greater Maari
Maari Upside Potential – Focus on “Greater Maari Maari”” For personal use only 9
Slide 11: PEP 51313 – New Zealand
PEP 51313 – New Zealand For personal use only 2,595 sq km block awarded with 5 year term… PEP 51313: HZN 30% Todd 50% (Op) CUE 20% …deep prospect and lead inventory in proven play-types 10
Slide 12: China 22/12 – Discoveries and Prospects
China 22/12 – Discoveries and Prospects For personal use only 200 mmbo-in-place discovered... Block 22/12 Pre-CNOOC Back-in: HZN 30% ROC 40% (Op) Petsec 25% Majuko Corp 5% Block 22/12 Post-CNOOC Back-in: HZN 14.7% CNOOC 51% ROC 19.6% (Op) Petsec 12.3% Majuko Corp 2.4% …development planning underway
Slide 13: Phased Development Concept
Phased Development Concept For personal use only 12
Slide 14: Recent PNG Transactions…heavy artillery arriving
Recent PNG Transactions…heavy artillery arriving For personal use only Date Company Transactions On-going Exxon Development of the Exxon-operated PNG LNG Project On-going InterOil Appraisal / development of Elk / Antelope LNG Project – to be front-ended with condensate stripping phase Sep’08 Sasol P
Slide 15: Talisman's Acreage in PNG
Talisman’s Acreage in PNG For personal use only 14
Slide 16: Papua New Guinea
Papua New Guinea Uptick in industry activity, with large projects gaining traction… For personal use only … major gas aggregation play emerging in Western Corridor /Offshore 15
Slide 17: PRL 4 and PRL 5 – Papua New Guinea
PRL 4 and PRL 5 – Papua New Guinea Possible recoverable resources of 1 – 2 tcf gas and 40 – 70 mmbo condensate… For personal use only …condensate stripping phase planning underway 16
Slide 18: Proven Export Route for liquids via Fly River
Proven Export Route for liquids via Fly River For personal use only 17
Slide 19: Foreland Area – Relatively Easy Surface Access
Foreland Area – Relatively Easy Surface Access For personal use only
Slide 20: Stanley-1 Wellsite
Stanley--1 Wellsite Stanley For personal use only Stanley Well Head
Slide 21: Stanley-1 Well Test – July 2008
Stanley--1 Well Test – July 2008 Stanley For personal use only § Flowed gas at approx 30 mmcfd on test § Flow was equipment limited § GOR 31 barrels / mmcf gas § Design rate for producer wells 70 mmcfd and 2,000 barrels of condensate / day 20
Slide 22: PNG Production Forecast – Horizon Oil Share
PNG Production Forecast – Horizon Oil Share For personal use only 21
Slide 23: The Oil Search Example – Unwinding the Risk
The Oil Search Example – Unwinding the Risk For personal use only Oil Search valued at US$7+ billion… …with 3 – 4 times Horizon Oil’s production forecast 22
Slide 24: Analysts' Valuations
Analysts’ Valuations For personal use only Firm Date of research Target share price Recommendation Wilson HTM 18 April10 $0.47 BUY Southern Cross Equities 26 February 10 $0.39 BUY Euroz 25 February 10 $0.44 BUY RBS Morgans 2 February 10 $0.45 BUY Patersons November 09 $0.47 BUY StockAnalysis 15 Octo
Slide 25: HZN Share Price … Catalysts for Re-rating
HZN Share Price … Catalysts for Re- Re-rating For personal use only § FID on Block 22/12 and begin construction § Stanley and Elevala drilling and begin construction of condensate stripping project § Progress (by Talisman) on Western Corridor gas aggregation scheme § Exploration success − PEP 51313,
Slide 26: Coming up in 2010…
Coming up in 2010… For personal use only § Maari field, New Zealand – − Optimise production from Moki zone − Manaia Mangahewa on production § PEP 51313, New Zealand − Acquire 3D seismic over Matariki − Prepare for drilling in 2011 § Block 22/12, offshore China − FID for Wei 6-12 + 12-8W development
Slide 27: Please visit the Horizon Oil website
Please visit the Horizon Oil website www.horizonoil.com.au to see:- see:- Detailed Investor Presentation For personal use only Latest Quarterly Report Analyst reports on HZN Level 7, 134 William St, Woolloomooloo NSW 2011 Tel: +612 9332 5000 Fax: +612 9335 5050 Email: exploration@horizonoil.com.au
Slide 28: Back-up Slides
For personal use only Back--up Slides Back 27
Slide 29: Horizon Oil Board and Management
Horizon Oil Board and Management For personal use only NON-EXECUTIVE RESPONSIBILITIES EXPERIENCE DIRECTORS Fraser Ainsworth AM Chairman of Board, Chairman of Remuneration, 28 years in CSR’s resource & energy business, former MD of Delhi, former MD of B.COMM, FAICD, FCPA Nomination and Disclosure Com
Slide 30: Maari Status
Maari Status For personal use only § Development drilling program with Ensco 107 jack-up rig began 11 November 2008 and completed on 26 July 2009. Program entailed batch drilling of 3 production wells, followed by 3 water injectors and 2 production wells § Wellhead platform and FPSO operational, con
Slide 31: Maari Reserves and Resources
Maari Reserves and Resources For personal use only Zone Gross Oil-in-place Gross recoverable 2P reserves (mmbo) (mmbo) Maari Moki 141 60 – to be revised Gross 2P resources (mmbo) Maari M2A Sands 40 Waiting on development plan Manaia Mangahewa 50 – 60 Waiting on development plan 30
Slide 32: Block 22/12 Shared, Phased Development Plan
Block 22/12 Shared, Phased Development Plan For personal use only § Philosophy is to utilise CNOOC facilities, infrastructure and manpower where possible to achieve capex and opex sharing and accelerated timing to first oil § Phase I – unmanned wellhead platforms at Wei 6-12S and Wei12-8W, tied back
Slide 33: Western Province Play – Papua New Guinea
Western Province Play – Papua New Guinea For personal use only § Significant resource position, 50% interest with partner Talisman Energy Inc. in:- − PRL 4 (Stanley gas / condensate discovery) − PRL 5 (Elevala and Ketu gas / condensate discoveries) § Fields located in relatively flat and accessible
Slide 34: Funding Position 2010 - 2011
Funding Position 2010 - 2011 For personal use only Funding requirements Operations US$million § China Block 22/12 development capex at 14.7% interest to first production: ~45 § PNG Stanley development capex at 38.75% interest to first production: ~90 § Unspecified overhead, exploration and developme