Horizon Oil Limited · ASX:HZN
Horizon Oil — OTCQB Virtual Investor Conference March 2023
17 slides from Horizon Oil's conference presentation, Mar 16, 2023
Slide 1: Horizon Oil Limited OTCQB Investor Presentation
Level 4, 360 Kent Street P +61 2 9332 5000 Sydney NSW 2000 F +61 2 9332 5050 Australia horizonoil.com.au 16 March 2023 HORIZON OIL LIMITED The Manager Company Announcements OTCQB INVESTOR PRESENTATION ASX Limited Exchange Centre 20 Bridge Street Attached please find Horizon’s presentation to be host
Slide 2: OTCQB Webcast Virtual Investor Conference
OTCQB WEBCAST VIRTUAL INVESTOR CONFERENCE OTCQB WEBCAST - VIRTUAL INVESTOR CONFERENCE MARCH 2023
Slide 3: Compliance Statement
COMPLIANCE STATEMENT Disclaimer Reserves Disclosure ► Statements contained in this material, particularly those regarding the possible or assumed ► Unless otherwise stated, all petroleum reserves and resource estimates refer to future performance, costs, dividends, returns, production levels or rate
Slide 4: Horizon Snapshot - Delivering on Strategy
HORIZON SNAPSHOT - DELIVERING ON STRATEGY ► Horizon is a low-cost oil producer producing ~5,000 bopd (net), highly leveraged to oil price and generating strong cashflows ► Two producing assets – non-operated interests in Block 22/12, Beibu Gulf, China (26.95%); Maari project, New Zealand (26%) ► We
Slide 5: Horizon's Portfolio
HORIZON’S PORTFOLIO BLOCK 22/12, BEIBU GULF, CHINA MAARI, NEW ZEALAND Ownership ► 26.95% ► 26% ► CNOOC (51% - Operator) ► OMV (69% - Operator) Partners ► Roc Oil (19.6%) ► Cue Energy (5%) ► Oil Australia Pty Ltd. (2.45%) H1 FY23 production ► ~750,000bbls ► ~180,000bbls Current net production ► ~4,00
Slide 6: Share Price Performance
SHARE PRICE PERFORMANCE $0.20 20 3c distribution $0.18 18 $0.16 16 $0.14 14 $0.12 12 Volume 10^6 $0.10 10 $0.08 8 $0.06 6 $0.04 4 $0.02 2 $0.00 0 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 HZN Trading Volume (RHS) HZN Share Price S&P/ASX
Slide 7: HY23 Half-Year Highlights
HY23 HALF-YEAR HIGHLIGHTS PRODUCTION GROWTH DRIVING SUSTAINED FREE CASHFLOW LOW COST, CASH GENERATIVE PRODUCER GENERATION ► Production growth – 40% increase in production over prior comparative NET CASH/(NET DEBT) period ► Revenue growth – 93% increase in revenue over prior comparative 100 period dr
Slide 8: Half-Year 2023 Operational and ESG Highlights
HALF-YEAR 2023 OPERATIONAL AND ESG HIGHLIGHTS OPERATIONAL ESG ► WZ12-8E project successfully completed - oil from ten wells ► Strong safety record better than industry benchmarks progressively brought into production since April 2022 – ► Seed capital investment in carbon removal credit developer pro
Slide 9: Block 22/12, Beibu Gulf, China: Record Production from Our Flagship Asset
BLOCK 22/12, BEIBU GULF, CHINA: RECORD PRODUCTION FROM OUR FLAGSHIP ASSET ASSET OVERVIEW Export to Weizhou WZ6-12 North Terminal WZ6-12 Mid WZ6-12 Sliver ► Block 22/12, Beibu Gulf, China, 26.95%, commenced production in 2013 WZ6-12 South CNOOC ► Block 22/12 generates approximately 80% of Horizon ope
Slide 10: WZ12-8E Development Project Summary
WZ12-8E DEVELOPMENT PROJECT SUMMARY WZ12-8E DEVELOPMENT PROJECT WZ12-8E PHASE 1 & 2 DEVELOPMENT ► Project commissioned and brought on to production in Apr 2022 WZ12-8E WHP Export ► Eleven well (ten production, one water disposal) campaign across three hydrocarbon pools pipeline successfully drilled
Slide 11: Block 22/12: History & Forecast (Gross)
BLOCK 22/12: HISTORY & FORECAST (GROSS) 20,000 History Forecast History 2P forecast Indicative future activities 2P forecast Indicative future activities est. net Capex $10-15 p.a 15,000 End of End of Gross oil rate (bopd) WZ6-12/12-8W Block 22/12 PSC History Production (Petroleum Period (SDA) Contr
Slide 12: Maari: Stable Performance
MAARI: STABLE PERFORMANCE CASHFLOW PRODUCTION FIELD LIFE COSTS ► Maari/Manaia generates ► Commenced production in 2009 ► Production license and 2P ► Cash operating costs for FY2022 approximately 20% of Horizon reserves forecast to end of 2027, of $34/bbl produced operating cashflow ► CY23 work progr
Slide 13: Maari: History & Forecast (Gross)
MAARI: HISTORY & FORECAST (GROSS) History Forecast 10,000 History Forecast Life extension Indicative future activities Current permit 8,000 Forecast expiry Indicative future activities1 Gross Oil Rate (bopd) History 6,000 Life extension 4,000 2,000 Cumulative production to 31 Dec 2022: 45.8 MMbbl 0
Slide 14: Plans for the Next 12 Months
PLANS FOR THE NEXT 12 MONTHS1 2023 2024 Q1 Q2 Q3 Q4 Q1 Block 22/12 possible infill drilling (between two and five wells)1 Planning in progress WZ12-8E possible water-handling Design in progress & capacity upgrade1 ongoing Preliminary planning in progress; WZ12-8E possible Phase 31 subject to JV appr
Slide 15: 2023 Summary Activity Outlook
2023 SUMMARY ACTIVITY OUTLOOK FURTHER DISTRIBUTIONS TO CONTINUE INVESTING IN MAXIMISE FREE CASHFLOW1 SHAREHOLDERS PRODUCTION GROWTH ► Recent investment in Block 22/12 ► Regular distributions continue to be a ► WZ12-8E field – consideration of a WZ12-8E development – Phase 1 & 2, and priority possibl
Slide 16: FY23 Guidance
FY23 GUIDANCE A STRONG END TO THE FINANCIAL YEAR ANTICIPATED - DRIVEN BY CONTINUED STRONG PRODUCTION Production Sales Revenue EBITDAX 1.85 - 1.95 1.85 – 1.95 US$155 – 165 US$105 – 115 million barrels million barrels million million ► Production additions in ► Sales volumes forecast to ► Revenue expe
Slide 17: Contacts
CONTACTS RICHARD BEAMENT, CEO +61 2 9332 5000 info@horizonoil.com.au Horizon Oil Limited Level 4, 360 Kent Street Sydney NSW 2000 Australia horizonoil.com.au OTCQB WEBCAST - VIRTUAL INVESTOR CONFERENCE MARCH 2023
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