Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP

Hindustan Oil Exploration — Q1 FY2019-20 Earnings Presentation

32 slides from Hindustan Oil Exploration's earnings presentation, Aug 6, 2019

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION 6TH AUGUST 2 0 1 9 T R A N S F O R M I N G T H R O U G H T A L E N T AND T E C H N O L OG Y 1 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED

  2. Slide 2: Safe Harbour

    SA F E HARBOUR Investor presentation Q1 2019-20 This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti

  3. Slide 3: Contents

    CO N T E N TS Investor presentation Q1 2019-20 1 Q1 FY 19-20 Performance Highlights 2 Focus Areas & Priorities 3 Business Outlook 02 | H I N D U S T A N OIL E X P L O R A TI ON C O M P A N Y L I M I T E D

  4. Slide 4: Q1 FY19-20 Performance Highlights

    Q 1 F Y 1 9 - 2 0 P E R F O R M A N C E H I G H L I G H TS Investor presentation Q1 2019-20 Gross Production Net Production • Production at Dirok and PY-1 had to be curtailed due to major (BOEPD) (BOEPD) customer shutdowns. Wells were ready to deliver. Offtake was limited Q1 FY20 : 7962 Q1 FY20 : 33

  5. Slide 5: Focus Areas & Priorities

    FO C U S A R EA S & P R I O R I T I ES Investor presentation Q1 2019-20 Deliver • B-80 Development – Endeavor to deliver ‘First Oil’ by June 2020 • Phase - II development of Dirok to increase production by Q1 21-22 Development • Work with new operator ONGC to revive PY-3 Projects • Appraisal & Devel

  6. Slide 6: B-80 Development Plan

    B - 8 0 D E V E LO P M E N T P L A N Investor presentation Q1 2019-20 1 FDP involves drilling of two wells and process by MOPU 2 Marketing and pricing freedom Evacuating Gas/Oil through existing ONGC 3 lines STOIIP – 40 MMbbls; 4 GIIP – 44 bcf 5000 bopd & Target: 15 mmscfd in Phase - I 50% PI June 2

  7. Slide 7: B-80 Updates

    B - 8 0 U P DAT ES Investor presentation Q1 2019-20 Project On-track for delivery of ‘First Oil’ by June 2020 1. DRILLING 2. MOPU 3. PIPELINES 2 Subsea wells Export of hydrocarbon through Processing of Hydrocarbon ONGC pipelines - Options being evaluated for award of - Drilling Rig secured - Topside

  8. Slide 8: Dirok Phase-II Development

    D I RO K P H A S E - I I D E V E LO P M E N T Investor presentation Q1 2019-20 Project on-track for delivery of additional gas by Q1 FY21-22 RFDP approved by Managing Committee 1. DRILLING 2. PROCESSING 3. DELIVERY 35 KM pipeline from HMGPP 3 development wells HMGPP to marketing hub of Duliajan & Ap

  9. Slide 9: Kharsang Updates & Development Plan

    K H A RSA N G U P DAT ES & D E V E LO P M E N T P L A N Investor presentation Q1 2019-20 Plan for 18 wells in Phase - I FDP approved with the following parameters: Reservoir Upper Girujan OIIP/ GIIP 223 MMBBls/ 184 BCF Production Rate Production to be increased to 1800 bopd from ~650 bopd Planned Ac

  10. Slide 10: PY-3: Change in Operatorship

    P Y - 3 : C H A N G E I N O P E R ATO RS H I P Investor presentation Q1 2019-20 ― ONGC is assuming operatorship of PY-3 field under the PSC/JOA. Field will be operated under joint operatorship model with appropriate role for HOEC ― HOEC has 21% stake in PY-3. Operates PY-1 Gas field with an offshore

  11. Slide 11: Cambay Blocks

    C A M BAY B LO C KS Investor presentation Q1 2019-20 3 blocks with developed infrastructure with upside to be exploited E Asjol ; (O); PI 50.0% D North Balol ; (O); PI 25.0% C CB-ON-7; (O); PI 35.0% 3 blocks - Asjol, North Balol and CB-ON/7 R2 Area : CB-ON/7 ― Revised FDP submitted for Asjol & North

  12. Slide 12: Value Proposition

    VA LU E P RO P O S I T I O N Investor presentation Q1 2019-20 Quality Asset Portfolio Strong Organisation Focused Strategy Uniquely placed to combine a quality asset portfolio with a strong organisation through a focused strategy to deliver better returns 11 | H I N D U S T A N OIL E X P L O R A TI

  13. Slide 13: Quality Asset Portfolio

    Q UA L I T Y A S S E T P O RT F O L I O Investor presentation Q1 2019-20 A AAP-ON-94/1; (O); PI 26.882% • Portfolio of discovered resources – Ten blocks B AA/ONDSF/KHEREM/2016; (O); PI 40.0% with discoveries producing / ready to be developed K • Diverse geographical footprint - Presence in 4 out of

  14. Slide 14: Firing Up the Growth Engine

    F I R I N G U P T H E G ROW T H E N G I N E Investor presentation Q1 2019-20 Gas (boe/d) Forecast Oil/ Cond. (bbl/d) GP ~ 21000 boepd GP ~ 15000 boepd GP – Gross Production NP – Net Production Boepd – Barrels of Oil Equivalent GP ~ 10000 boepd NP ~ 9000 GP - 9170 boepd boepd GP – 7962 boepd NP ~ 750

  15. Slide 15: Market Outlook

    M A R K E T O U T LO O K Investor presentation Q1 2019-20 GoI Price of Domestic Gas ($/mmbtu) Historic Brent price($/bbl) 6 120 5.05 5 4.66 100 3.82 4 3.69 3.36 80 3.06 2.89 3.06 3 2.5 2.48 60 2 40 20 1 0 0 Jun-2014 Jun-2015 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Sep-2014 Dec-2014 Mar-2015 Sep-2015 Dec

  16. Slide 16: Business Outlook - Summary

    B U S I N ES S O U T LO O K - S U M M A RY Investor presentation Q1 2019-20 1 Unique value proposition - Quality asset portfolio with strong organisational capabilities 2 Company established on firm financial foundation with growing cash flow from operations 3 Management committed to growth through

  17. Slide 17: Annexures

    Annexures ; eas ~ | povereorerceerrersaree” |1]1i1)\/1(\1\)) Saeceeatea a at jl fi i i fi sl Halt | mt a

  18. Slide 18: Standalone Statement of Profit & Loss

    STA N DA LO N E STAT E M E N T O F P RO F I T & LO S S Investor presentation Q1 2019-20 For the Quarter (₹ Crores) . Particulars Qtr1-19-20 Qtr4-18-19 INCOME Revenue from operations 49.35 71.42 Other income 4.03 3.66 Total revenue 53.38 75.08 EXPENSES Expenses from producing oil and gas blocks 6.60

  19. Slide 19: Standalone Statement of Assets & Liabilities

    STA N DA LO N E STAT E M E N T O F A S S E T & L I A B I L I T I ES ( U N AU D I T E D ) Investor presentation Q1 2019-20 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Jun 30, 2019 March 31, 2019 Jun 30, 2019 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant and Equ

  20. Slide 20: Consolidated Statement of Profit & Loss

    CO N S O L I DAT E D STAT E M E N T O F P RO F I T & LO S S Investor presentation Q1 2019-20 For the Quarter (₹ Crores) . Particulars Qtr1-19-20 Qtr4-18-19 INCOME Revenue from operations 56.67 77.35 Other income 4.07 4.07 Total revenue 60.74 81.42 EXPENSES Expenses from producing oil and gas blocks

  21. Slide 21: Consolidated Statement of Assets & Liabilities

    CO N S O L I DAT E D STAT E M E N T O F A S S E T & L I A B I L I T I ES ( U N AU D I T E D ) Investor presentation Q1 2019-20 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Jun 30, 2019 March 31, 2019 Jun 30, 2019 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant an

  22. Slide 22: GoI Policy on Royalty & Cess

    G O I P O L I C Y O N ROYA LT Y & C ES S Investor presentation Q1 2019-20 Previously After GoI Policy on Royalty & Cess Royalty & Cess Royalty & Cess Paid 100% by Licensee and not cost To be shared by JV parties in ratio of Revenue recoverable Revenue their PI and cost recoverable as contract costs

  23. Slide 23: Investment Multiples

    I N V EST M E N T M U LT I P L ES Investor presentation Q1 2019-20 Block AAP-ON-94/1 PY-1* PY-3* N. Balol Asjol CB-ON-7 Kharsang* Gas 10% 10% 10% 10% - - - Royalty Oil/Cond 20% INR 481/MT 10% - INR 481/MT 20% INR 481/MT Cess Oil/Cond 20% INR 900/MT 20% 0 INR 900/MT 20% INR 900/MT Cost Recovery limit

  24. Slide 24: RSC Parameters

    RS C PA R A M E T E RS Investor presentation Q1 2019-20 Block B-80 Kherem AA-ONHP-2017/19 Umatara Government Share of 12% 21% 22% 48% Revenue – LRP Government Share of 55% 99% 99% 99% Revenue - HRP 10% for crude oil, 12.5% for crude oil 12.5% for crude oil 12.5% for crude oil Royalty condensate and

  25. Slide 25: Dirok: Delivered Results on Fast-Track Mode

    D I RO K : D E L I V E R E D R ES U LTS O N FA ST - T R AC K M O D E Investor presentation Q1 2019-20 23 | H I N D U S T A N OIL E X P L O R A TI ON C O M P A N Y L I M I T E D

  26. Slide 26: Upcoming Natural Gas Grid in North-East

    U P CO M I N G N AT U R A L G A S G R I D I N N O RT H - EA ST Investor presentation Q1 2019-20 North Eastern Gas/Oil fields North Eastern gas fields of Dirok, Kharsang and Kherem indirectly connected to Indradhanush through Numaligarh Pipeline envisaged as part of NE gas grid Existing DNPL pipeline

  27. Slide 27: Upcoming Natural Gas Grid in North-East

    U P CO M I N G N AT U R A L G A S G R I D I N N O RT H - EA ST Investor presentation Q1 2019-20 Company Name Core business North – East natural gas grid (Indradhanush) Gas transporter that serves 38- tea estates, AGCL 900 commercial establishments and about connecting all seven NE state capitals and

  28. Slide 28: Kherem (Arunachal Pradesh - DSF Block)

    K H E R E M ( A R U N AC H A L P R A D ES H – D S F B LO C K ) Investor presentation Q1 2019-20 • Block Area: 16.45 Sq. Km. • Drilled Wells: 3 • Tested Production: ➢Oil 402 bopd ➢Gas not measured • Discovered Resources: DSF Data HOEC Internal Resources Million BBLs Million BBLs STOIIP 3 10.27 GIIP (

  29. Slide 29: Asset Portfolio & JV Partners

    A S S E T P O RT F O L I O & J V PA RT N E RS Investor presentation Q1 2019-20 Block Name Operator Location Oil/Gas PI Partner(s) Oil/Gas Consumers Gas – OIL India; Dirok HOEC Onshore Gas 27% Condensate – IOCL Gas – GAIL; Producing PY-1 HOEC Offshore Gas 100% Nil Condensate – CPCL CB-ON-7 HOEC Onsho

  30. Slide 30: Company Overview

    Investor presentation Q1 2019-20 CO M PA N Y OV E RV I E W Shareholding Pattern (more than 10 %) HDFC 10.79% 75.06% 14.15% (65,000+) Retail & Others AKGT Board of Directors Vivek Rae P. K. Borthakur Sharmila Amin Ashok Goel Rohit Rajgopal Dhoot P. Elango R. Jeevanandam Non-Executive Non-Executive No

  31. Slide 31: Contact

    CO N TAC T Investor presentation Q1 2019-20 For further information, please contact: Company : Investor Relations Advisors : Hindustan Oil Exploration Company Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L11100GJ1996PLC029880 CIN: U74900MH2014PTC259212 G. Josephin Daisy Gaurang Vasani/ Vikash Verma jdais

  32. Slide 32: Glossary

    G LO S SA RY Investor presentation Q1 2019-20 2P - Proved + Probable reserves RSC - Revenue Sharing Contract BCF - Billion Cubic Feet of Gas HMGPP - Hollong Modular Gas Processing Plant GGS - Gas Gathering Station M-GPP - Modular Gas Processing Plant MMbbls - Million Barrels of Oil MMSCFD - Million

Hindustan Oil Exploration Company — Q1 FY2019-20 Earnings Presentation on 6ix