Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q2 FY2016-17 Earnings Presentation
25 slides from Hindustan Oil Exploration's earnings presentation, Oct 27, 2016
Slide 1: Investor Presentation, 27 October 2016
INVESTOR PRESENTATION, 27 OCTOBER 2016 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall n
Slide 3: Contents
Contents 1 Q2 FY 16-17 Highlights 2 Growth Strategy 3 Company Overview 4 Key Strengths HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 3
Slide 4: Q2 FY 2016-17 Highlights
Q2 FY 2016-17 Highlights Debt Free Balance Sheet & Self Funding for Assam Project. Strong financials Gross working capital ₹ 258 Crore includes ₹ 206 Crore cash and cash equivalent Dirok Dirok-1, Dirok-2 & Dirok-4 completed and tested for flow of gas development Drilling of two additional we
Slide 5: Company Overview
Company Overview Strong portfolio of Onshore and Offshore Fields in India with a judicious mix of development and production assets Founded as the very First Oil and Gas Company in private sector by the late Diverse Investors with Professional Board Shri. H. T. Parekh Currently 7 blocks – 4 Producin
Slide 6: HOEC Shareholding Pattern & Board Members
HOEC Shareholding Pattern & Board Members Shareholding Pattern (more than 10 %) HDFC 11.36% 75% 14.15% (85,000+) Retail & Others AKGT Board of Directors Sunil Behari Mathur P.K. Borthakur Sharmila Amin P. ELango R. Jeevanandam Chairman Director Director Managing Director Director & CFO Note: Shareho
Slide 7: Short term growth strategy
Short term growth strategy Build Portfolio Participate in (DSF) 2016 Bidding Round Revive Offshore Leverage Expertise in Marginal Fields Assets (PY1 and PY3) Continuous scouting for Access Undeveloped inorganic opportunities Resources Enhance Cambay Explore Synergies Improve Recovery between the Two
Slide 8: Project Summary: AAP-ON-94/1
Project Summary: AAP-ON-94/1 First Gas Q4 FY 16-17 H2 FY 2017 Drill and complete 2 additional wells; Dirok-3 and Dirok-5 Complete pipeline Finalise Gas & Condensate Sales Contracts Modular Gas Processing Plant ; Delivery end Jan 2017 Deliver First Gas and Condensate ; Q4 FY 16-17 HINDUSTAN OIL
Slide 9: Assam: Attractive project specifics
Assam : Attractive project specifics… Cost HOEC entitled to higher share of revenue in initial years carry of Viable even low gas prices due to low Operating cost $100 Million Additional well within the approved Development cost Attractive No Cess and Royalty payable by Companies Payout Pr
Slide 10: Growth Opportunity: Tipam & North Dirok
Growth Opportunity: Tipam & North Dirok PROSPECT MAP The Prolific Deeper Tipam & Barail Formation and North Dirok Structures falling in the development area HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 10
Slide 11: PY-1 – Undeveloped Resources to be Accessed
PY-1 – Undeveloped Resources to be Accessed Significant Significant potential resources exists for development resource base Techno-commercial risks are being evaluated Study on synergy with adjoining PY-3 block to optimize the Synergies operating cost to the benefit for all stakeholders is co
Slide 12: PY3 & PY1 Integration
PY3 & PY1 Integration PY-1 BLOCK PY-3 field shutdown since July 2011, when producing 3000+ bopd without any sub-surface issues. SUN PLATFORM Full field potential of PY-3 needs a relook to enhance the EUR without gas flaring HOEC has 21% stake in PY-3 & operates PY-1 Gas field PY-3 BLOCK with a
Slide 13: Cambay Marginal Fields
Cambay Marginal Fields • Wells : 9 wells (2 Producing) Marginal Fields’ Contribution North Balol • Reservoir : Balol, Babaguru & Kand Sands (HOEC PI : 25%) • Avg Prod. Q2 FY 16-17 (100%): 0.38 mmscfd • Q2 FY 16-17 Net Revenue : ₹ 2.2 mn Netback ($/boe) Cost Recovery • Q2 FY 16-17 Opex : ₹ 0.8 mn 80%
Slide 14: CB-ON-7 R2 Area
CB-ON-7 R2 Area Government is likely to grant 97.15 Sq. km of ring-fenced R2 area to JV of HOEC and GSPC through New PSC Recent discovery by private operator in June 2015 on the surrendered area of this Block enhances prospect of the area Proposed PSC envisages minimum commitment of 3D seismic
Slide 15: Key Strengths
Key Strengths Proven development and operating experience in both onshore and offshore assets with multiple JV partners Professional management & competent technical team with rich oil and gas experience Debt free balance sheet, track record of safe and low cost operations with fast track developmen
Slide 16: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : HOEC Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L11100GJ1996PLC029880 CIN: U74900MH2014PTC259212 G. Josephin Daisy Gaurang Vasani/ Pooja Dokania jdaisy@hoec.com vgaurang@stellar-ir.com/ dpooja@stellar-ir.com www.hoec.com w
Slide 17: Annexure
ANNEXURE
Slide 18: Statement of Profit & Loss
Statement of Profit & Loss Q2 FY 16-17 Q1 FY 16-17 Q2 FY 15-16 Particulars ₹ millions ₹ millions ₹ millions INCOME Revenue from operations 56 60 57 Other income 61 35 23 Total revenue 117 95 80 EXPENSES Operating expenses 25 27 38 Decrease in stock of crude oil -8 -6 5 Employee benefits expense 3 3
Slide 19: Statement of Assets and Liabilities unaudited
Statement of Assets and Liabilities unaudited As at As at As at As at ASSETS Sep 30, Mar 31, EQUITY AND LIABILITIES Sep 30, Mar 31, 2016 2016 2016 2016 ₹Millions ₹ Millions ₹ Millions ₹ Millions Non-current assets Equity (a) Property, Plant and Equipment 629 677 (a) Equity share capital 1,305 1,305
Slide 20: Development Cost Optimized Through Innovation
Development Cost Optimized Through Innovation Logbaba EPF- Camerroon Built by Expro • Early Monetisation • Adoption of Modular Gas Processing • M-GPP contract on build, maintenance through a 4” parallel ( M-GPP) on Opex Model results in and operate (BMO) model awarded to pipeline to connect to Red
Slide 21: PY-1: Technical Work Plan FY 16-17
PY-1: Technical Work Plan FY 16-17 Technical Advisory Committee of Experts Constituted - Focus Areas • Reprocess 3D with “Controlled Beam. Migration” • Identify type of fractures, flow of HC & water, to ascertain their production potential. • Re-evaluate reserves • Relook into the resources of undri
Slide 22: Professional Management Team
Professional Management Team P ELANGO Managing Director • Over 28 years of experience in Upstream Oil & Gas Sector • Held several leadership roles in different areas of the business and is a recognized leader in the Indian industry • Earlier CEO of Cairn India, played a key role in building Cairn in
Slide 23: Strong Technical Capabilities
Strong Technical Capabilities B. C. Gariya Sagar N. Mehta P R Krishna Debabrata Panda Indreshwar Bharali Exploration Manager & Head-Cambay Business Unit Asset Manager (Assam) & Head – Drilling & Completions Advisor (Infrastructure) Head Technical HOEC Head – Contracts & Procurement P. B. Raju S. S.
Slide 24: Asset Portfolio (Production / Development)
Asset Portfolio (Production / Development) Block Name Operator Location Oil/Gas PI Partner(s) ASSAM-ARAKAN PY-1 HOEC Offshore Gas 100% Nil AAP-ON-94/1 North Balol CB-ON-7 HOEC Onshore Oil 35% Asjol CB-OS/1 CB-ON-7 North Balol HOEC Onshore Gas 25% CAMBAY Asjol HOEC Onshore Oil 50% AAP-ON- HOEC Onshor
Slide 25: Glossary
Glossary 2P - Proved + Probable reserves BCF - Billion Cubic Feet of Gas GGS - Gas Gathering Station GPP - Gas Processing Plant MMbbls - Million Barrels of Oil PI - Participating Interest PSC - Production Sharing Contract EC - Environmental Clearence HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 25
Hindustan Oil Exploration Company — Q2 FY2016-17 Earnings Presentation on 6ix