Horizon Oil Limited · ASX:HZN
Horizon Oil — Euroz Securities Rottnest Island Institutional Conference 2018
21 slides from Horizon Oil's conference presentation, Mar 13, 2018
Slide 1: ASX announcement cover letter
Horizon Oil Limited ABN 51 009 799 455 Level 6, 134 William Street, Woolloomooloo NSW Australia 2011 Tel +61 2 9332 5000, Fax +61 2 9332 5050 www.horizonoil.com.au 13 March 2018 The Manager, Company Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) EUROZ SE
Slide 2: Euroz Rottnest Island Conference March 2018
HORIZON OIL LIMITED/ ABN 51 009 799 455 Euroz Rottnest Island Conference March 2018
Slide 3: Disclaimer
Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other trend projections and any estimated co
Slide 4: Horizon Oil as an investment proposition
Horizon Oil as an investment proposition Strong, long‐lived production profile and cash flow • Strong net operating cash flow from China and New Zealand, to average US$60 – 70 million pa over the period 2018 – 2022, with modest future capital expenditure • 5,000+ bopd of net oil sales from China and
Slide 5: Horizon Oil (ASX:HZN) snapshot
Horizon Oil (ASX:HZN) snapshot A focused portfolio of conventional production, development and exploration assets in Asia‐Pacific region, including : • 26.95% interest in Beibu Gulf oil fields, offshore China • 26% interest in Maari/Manaia oil fields, offshore New Zealand • Large gas and condensate
Slide 6: Key achievements – 2017
Key achievements – 2017 • Steady production, sales and cash flow from producing fields maintained with successful workover programs – in line with guidance • Cash operating cost, exploration and development capital expenditure and G&A expense all reduced – free cash flow breakeven of US$34/bbl • Net
Slide 7: Beibu Gulf, China (26.95%)
Beibu Gulf, China (26.95%) • WZ 6‐12 and WZ 12‐8W fields commenced production in 2013 • Fields continue to produce above forecast, currently at ~9,000 bopd following successful workover program in 2017 • Customary petroleum contract, with remaining cost recovery oil entitlement of US$76.7m to be rec
Slide 8: Beibu Gulf - near-term development projects
Beibu Gulf ‐ near‐term development projects Leased mobile production platform (MOPU) • Development plan (ODP) for integrated development of WZ 12‐8E and associated fields (audited gross 2C resources 11.1 mmbo) to be submitted for Government approval in 2018 • Three stage development, with target fir
Slide 9: Beibu Gulf production and cost recovery driving cash generation to 2022
Beibu Gulf production and cost recovery driving cash generation to 2022 Actual Forecast 4,500 4,000 Cost recovery production entitlement 3,500 3,000 2,500 bopd 2,000 WZ 12‐8E field 1,500 Existing fields 1,000 500 0 Jun‐15 Jun‐16 Jun‐17 Jun‐18 Jun‐19 Jun‐20 Jun‐21 Jun‐22 Working int production (exist
Slide 10: Maari / Manaia fields, New Zealand (26%)
Maari / Manaia fields, New Zealand (26%) • Maari oil field commenced production in 2009 • Gross production currently ~8,000 bopd • Acquisition of additional 16% interest, with effect from 31 December 2017, increasing interest to 26% • Regular workover program to replace ESPs, clean scale and add per
Slide 11: Maari/Manaia Fields - acquisition of additional 16% interest
Maari/Manaia Fields ‐ acquisition of additional 16% interest • Acquisition of additional 16% interest in PMP 38160 from Todd, increasing HZN interest in the producing Maari and Manaia fields to 26%* • Purchase price US$17.6m; effective date of 31 December 2017; regulatory approvals received, complet
Slide 12: Western Forelands Region, PNG
Western Forelands Region, PNG • Strategic acreage position, located in the Western Forelands region of PNG • Significant ~2.2 tcf gas resource discovered and appraised in uncomplicated structures, with highly productive sandstone reservoirs • High level of condensate and LPG contained in the gas • R
Slide 13: Western LNG, project overview
Western LNG, project overview • Western LNG comprises a 1.5 – 2.0 mmtpa (nameplate) modular liquefaction facility, to be located near‐shore Daru Island • 520 km gas and condensate pipelines will connect western foreland fields, containing appraised resources of 2.0 ‐ 2.5 tcf gas and 60 ‐ 70 million
Slide 14: Western LNG development scheme
Western LNG development scheme WLNG development ‐ 1.5 mtpa sales capacity Aggregated raw gas production profile ‐ 2C resources 300 250 Wellhead rate (mmscfd) 200 150 100 1C resources profile 50 ‐ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Production year PRL 21
Slide 15: Western LNG, concentrated resources distribution and ownership
Western LNG, concentrated resources distribution and ownership • Significant exploration and appraisal activity by HZN and its partners, including 19 wells and 11 production tests, has enabled independent certification of a material resource in the Western Foreland Region • Flow tests confirmed capa
Slide 16: Free cashflow and revenue protection
Free cashflow and revenue protection Free cash flow breakeven • Low breakeven price provides stability in low oil price environment and funding for development activities in PNG and capacity for debt repayment • Low opex in China and tight control over capital spend underwrites the low breakeven pri
Slide 17: Financial highlights – debt reduction continuing
Financial highlights – debt reduction continuing • Horizon Oil’s proven, developed and producing Beibu Gulf and Maari fields provide substantial debt security in a challenging environment for small and mid‐cap companies to access debt • US$58.8 million in convertible bonds redeemed in H2 2016 with c
Slide 18: Outlook for 2018
Outlook for 2018 Financial • Operating cash flows increasing from January 18 with additional interest in Maari/Manaia, continuing steady production at Beibu Gulf fields, including cost recovery production entitlement and ongoing control of opex and capex • Continued focus on debt reduction • Continu
Slide 19: Appendices
APPENDICES Euroz presentation March 2018 18
Slide 20: Solid track record and outlook for CY 2018
Solid track record and outlook for CY 2018 19 Euroz presentation March 2018
Slide 21: For more information please contact
For more information please contact: Horizon Oil Limited T: +61 2 9332 5000 Level 6, 134 William St Brent Emmett Chief Executive Officer F: +61 2 9332 5050 Woolloomooloo NSW 2011 E: info@horizonoil.com.au horizonoil.com.au Media enquiries Gavan Collery M: +61 419 372 210 ResourceComms Pty Ltd E: gav
Horizon Oil — Euroz Securities Rottnest Island Institutional Conference 2018 on 6ix