Horizon Oil Limited · ASX:HZN
Horizon Oil — Merger or Acquisition (April 2014)
19 slides from Horizon Oil's merger presentation, Apr 29, 2014
Slide 1: Merger Announcement: Creating a leading Asian E&P company
For personal use only MERGER ANNOUNCEMENT Creating a leading Asian E&P company April 2014
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions investors should rely on their own examination of Horizon Oil Limited (Horizon Oil) and Roc Oil Company Limited
Slide 3: Presenters
Presenters For personal use only Mike Harding Brent Emmett Alan Linn Chairman CEO CEO ROC Horizon Oil ROC 3
Slide 4: Transaction overview
Transaction overview For personal use only • All scrip merger of equals between ROC and Horizon Oil • Horizon Oil shareholders to receive 0.724 ROC shares for each Horizon Oil share they hold • Merger to be implemented by a Horizon Scheme of Arrangement • Compelling rationale for combination • Mike
Slide 5: Transaction rationale
Transaction rationale For personal use only Creating a leading Asian E&P company Highly complementary portfolios • Asian focused portfolio with attractive assets across China, PNG, Malaysia, Myanmar and Australia / New Zealand • Consolidates the existing overlapping interests in the Beibu Gulf and
Slide 6: Strong financial position
Strong financial position For personal use only • Strong cash flow with potential to support sustainable and increasing dividends, while also providing the ability to fund the combined group's highly attractive portfolio of growth options • Change of control in Horizon Oil will trigger a right for H
Slide 7: Compelling valuation metrics
Compelling valuation metrics For personal use only EV / CY14 EBITDA1,2,3 EV / CY15 EBITDA1,2,3 Rex International 66.7 Rex International 8.5 Kris Energy 15.2 RH Petrogas 7.0 RH Petrogas 10.8 Senex 6.0 Buru 8.5 Horizon Oil 4.9 Senex 6.7 Kris Energy 4.8 Horizon Oil 5.6 Buru 4.6 Medco 4.8 AWE 4.2 AWE 3.
Slide 8: A leading Asian E&P company
A leading Asian E&P company For personal use only Market Capitalisation (A$m)1,2 Enterprise Value (A$m)1,2 Senex 876 Medco 1,610 AWE 847 Energi Mega 958 Persada MergeCo 794 >1.1bn3 MergeCo 899 >1.2bn3 Medco 787 Drillsearch 822 Drillsearch 745 Salamander 820 Karoon 745 Senex 787 Kris Energy 659 AWE 7
Slide 9: Highly complementary portfolios resulting in four core asset areas
Highly complementary portfolios resulting in four core asset areas For personal use only China (Bohai Bay) • Zhao Dong C&D Fields: 24.5% • Zhao Dong C4 Field: 11.667% • Zhanghai and Chenghai: 39.2% • Block 09/05: 100% China (Beibu Gulf) Horizon Oil Assets • Block 22/12: 46.55% ROC Assets Joint asset
Slide 10: Strong, well balanced growth pipeline
Strong, well balanced growth pipeline For personal use only Exploration Appraisal Development Production Stanley Maari / Manaia PPLs 259, 430, 372, 373 D35, J4 and D21 PSC PRL 4 PMP 38160 Matariki Elevala / Ketu Beibu Gulf PEP 51313 PRL 21 Block 22 /12 Block 09/05 Balai Cluster RSC Cliff Head Block
Slide 11: Diversified resource base in Asia
Diversified resource base in Asia For personal use only Horizon Oil (as at 30 Jun 2013) ROC (as at 1 Jan 2014) Combined 100% oil / --% gas 90% oil / 10% gas 95% oil / 5% gas 3.8 3.8 2P (mmboe) 6.0 8.4 6.0 6.6 15.0 16.0 20.9 36.9 3.4 8.7 3.4 8.7 Australia / UK New Zealand PNG 1 New Zealand1 PNG China
Slide 12: Indicative combined production profile
Indicative combined production profile For personal use only Indicative combined production profile from discovered and appraised projects 25,000 Net working interest production (boepd) 20,000 15,000 10,000 5,000 - CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY26 CY27 CY28 CY29 CY30
Slide 13: Indicative timetable
Indicative timetable For personal use only Key milestones Target date Announcement of merger 29 April 2014 First Court hearing to approve Scheme Booklet and convene Scheme Meeting June 2014 Scheme Booklet despatched to Horizon Oil shareholders Late June 2014 Scheme Meeting for Horizon Oil shareholde
Slide 14: Experienced leadership group
Experienced leadership group For personal use only • The Board of the merged company will comprise three current Non-Executive Directors from ROC, four current Non-Executive Directors from Horizon and Brent Emmett (current CEO of Horizon) as the CEO and Managing Director of the merged group • Mike H
Slide 15: Questions and Answers
For personal use only QUESTIONS AND ANSWERS
Slide 16: Appendix: Additional information
For personal use only APPENDIX Additional information
Slide 17: Merger conditions
Merger conditions For personal use only Horizon Oil and ROC have entered into a Merger Implementation Deed, which contains conditions including: • customary regulatory and court approvals; • Horizon Oil shareholder approval of the Scheme (75% of votes cast; 50% of shareholders voting); • no material
Slide 18: Overview of Horizon Oil assets
Overview of Horizon Oil assets For personal use only Net 2P Net 2C Q1 CY 2014 Reserves Resources Average Net Production3 Location Asset Interest Operator JV Partner (mmboe) (mmboe) (boepd) China Block 09/05 40% option ROC ROC -- -- -- (Bohai Bay) CNOOC China Block 22/12 26.95% CNOOC ROC 6.6 4.84 3,5
Slide 19: Overview of ROC assets
Overview of ROC assets For personal use only Net 2P Net 2C Q1 CY2014 Reserves Resources Average Net Production2 Location Asset Interest Operator JV Partner (mmboe) (mmboe) (boepd) C&D Fields: 24.5% PetroChina Zhao Dong C4 Field: 11.667% ROC 3.7 4.6 3,803 Sinochem China Zhanghai / Chenghai: 39.2% (Bo