Horizon Oil Limited · ASX:HZN
Horizon Oil — Excellence in Upstream Energy Conference 2007
32 slides from Horizon Oil's conference presentation, May 23, 2007
Slide 1: ASX announcement: presentation at Excellence in Upstream Conference
23 May 2007 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) PRESENTATION AT EXCELLENCE IN UPSTREAM CONFERENCE IN FOUR SEASONS HOTEL, SYDNEY The attached presentation will be given today by Brent Emmett, Horizon O
Slide 2: Excellence in Upstream Energy Conference
HORIZON OIL LIMITED ABN 51 009 799 455 Excellence in Upstream Energy Conference 22 – 23 May 2007 Brent Emmett Chief Executive Officer This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of the business
Slide 3: Presentation Outline
Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on Asia • China • Thailand • Papua New Guinea Why buy Horizon Oil (HZN)? U[pst
Slide 4: Presentation Outline
Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on Asia • China • Thailand • Papua New Guinea Why buy Horizon Oil (HZN)? U[pst
Slide 5: The Mission
The Mission To build a specialist Asian E&P company of +/- US$500 million value, that will be highly valued by the market and potential acquirors Asset portfolio attributes: balanced (E vs D), concentrated, material interests, focus on quality U[pstream Presentation 2007
Slide 6: Why Focus on Asia?
Why Focus on Asia? Strong demand for oil and pipeline gas Japan Uncomplicated China geological targets in productive fairways Taiwan Straightforward drilling Myanmar and development Laos parameters Thailand Vietnam Cambodia Mature operating Philippines environment Malaysia Good deal flow with Brunei
Slide 7: Presentation Outline
Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on Asia • China • Thailand • Papua New Guinea Why buy Horizon Oil (HZN)? U[pst
Slide 8: Location Of Assets
Location Of Assets U[pstream Presentation 2007
Slide 9: Asset Summary
Asset Summary Development PMP 38160 / PEP 38413, offshore New Zealand: 10% Maari field development underway – first production Q2 2008 Block 22/12, offshore China 30% 14.7% Planning underway on Wei 6-12S discovery Appraisal PEP 38413, offshore New Zealand: 10% Manaia PRL 4: 27.95% and PRL 5: 10.36%,
Slide 10: Trading Statistics
Trading Statistics (as at 21 May ‘07) T h is m o n th Last $ 0 .2 9 0 H ig h $ 0 .3 4 5 Low $ 0 .2 9 0 Shareholder Distribution V o lu m e 2 2 ,3 7 1 ,1 0 2 1 2 M o n th s Oasis Energy Last $ 0 .2 9 0 (incl H ig h $ 0 .4 8 0 management) Low $ 0 .2 7 0 Retail 20.1% V o lu m e 2 2 9 .2 m illio n 33.0%
Slide 11: Presentation Outline
Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on Asia • China • Thailand • Papua New Guinea Why buy Horizon Oil (HZN)? U[pst
Slide 12: Reserves, Resources and Exploration Potential
Reserves, Resources and Exploration Potential Net recoverable oil in millions of barrels (mmbo) N et R eserves Unriske d Ne t Exploration Pote ntial N et R eserves in D evelopmen t and Aw aiting Appraisal Appraised for D evelop ment Maari (other B lock 22/12 zones + (W ei 6-12 B lock 22/12 Manaia) a
Slide 13: Production Forecast - Value
Production Forecast - Value MARKET VALUATION @ $A$20/barrel of proven + PRODUCTION FORECAST – Net daily oil (bopd) probable reserves / resources / potential 300 Maari and Wei 6-12S on production beginning in 2008… 12000 250 10000 8000 200 Bopd 6000 Exploration potential Share Value 4000 150 (risked)
Slide 14: Presentation Outline
Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on Asia • China • Thailand • Papua New Guinea Why buy Horizon Oil (HZN)? U[pst
Slide 15: Maari Development – New Zealand
Maari Development – New Zealand Platform and FPSO 54% and 62% complete on a 50+ mmbo oilfield… …with 10 – 20 mmbo upside potential U[pstream Presentation 2007
Slide 16: Maari Development Progress
Maari Development Progress Overall development concept confirmed – 5 production / 3 injection horizontal wells with wellhead platform / FPSO production facilities FID capex budget US$365 million (including contingency). Current forecast cost to completion US$419 million US$40 million finance facilit
Slide 17: China 22/12 – Discoveries & Prospects
China 22/12 – Discoveries & Prospects 60+ mmbo recoverable reserves discovered... …with +/- 100 mmbo recoverable exploration potential U[pstream Presentation 2007
Slide 18: Block 22/12 Development Planning
Block 22/12 Development Planning Stand-alone development concept Processing / production platform with 20,000 – 25,000 bopd capacity and floating storage at Wei 6-12S location Unmanned minimal structures for Wei 6-12 and other nearby fields, tied back to Wei 6-12S hub facility Dehydration platform a
Slide 19: Wei 6-12 South Discovery
Wei 6-12 South Discovery Gross pay interval of 500 m in numerous reservoir sands with collectively 100 m of net pay (predominantly oil-bearing) Reservoir sands generally good quality, up to 25 m thick; DSTs over 3 main pay zones flowed at combined rate of 5,750 bopd Second sidetrack drilled 400 m to
Slide 20: Wei 6-12 South Discovery
Wei 6-12 South Discovery DST#3 DST#2 DST#1 U[pstream Presentation 2007
Slide 21: Amplitude Anomalies over Block 22/12
Amplitude Anomalies over Block 22/12 12-1 Field Complex 300 mmbo Wei 6-12-1 5 – 10 mmbo Wei 6-12-S 28 mmbo …several anomalies remain to be drilled U[pstream Presentation 2007
Slide 22: Presentation Outline
Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on Asia • China • Thailand • Papua New Guinea Why buy Horizon Oil (HZN)? U[pst
Slide 23: Focus on Asia
Focus on Asia Strong demand for oil and pipeline gas Japan Uncomplicated China geological targets in productive fairways Taiwan Straightforward drilling Myanmar and development Laos parameters Thailand Vietnam Cambodia Mature operating Philippines environment Malaysia Good deal flow with Brunei limi
Slide 24: Lei Dong Block 24/05
Lei Dong Block 24/05 An entire virgin basin in which to follow up Block 22/12 success… …surrounded by five productive analogue basins U[pstream Presentation 2007
Slide 25: Lei Dong Block – Structures and Leads
Lei Dong Block – Structures and Leads 110’ 40’’ 111’ 00’’ 111’ 20’’ 111’ 40’’ Lead Area (km2) Pay (m) Unrisked Prospect Potential (mmbo) 9-1 5-20 20-50 20-120 9-2 5-20 20-50 20-120 10-1 5-15 10-30 10-80 11-1 10-20 10-30 20-150 20’ 7-1 5-12 20-50 20-80 50’’ 4* Leads 10-50 10-30 50-200 11-1 10-1 7-1 9
Slide 26: Gulf of Thailand
Gulf of Thailand U[pstream Presentation 2007
Slide 27: Thailand Prospects and Leads
Thailand Prospects and Leads Oil and gas plays in a proven trend… Oil Discovery Gas Fields / Discoveries Gas Discovery Gas pipeline Oil Lead Proposed Gas pipeline Gas Lead ~3 tcf Ubon Pattani Trough Malay Basin Sontaya-1 Mayura-1 Bussabong 5X 16-C 1 ~4 tcf Boondarik-1 Bua Luang-1 G10/48 18-C 1A THAI
Slide 28: Papua New Guinea
Papua New Guinea 2P recoverable resources of 524 bcf gas and 25 mmb condensate… …development options emerging U[pstream Presentation 2007
Slide 29: Presentation Outline
Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on Asia • China • Thailand • Papua New Guinea Why buy Horizon Oil (HZN)? U[pst
Slide 30: Horizon Oil Comparative Valuation
Horizon Oil Comparative Valuation 50 45 40 EV / 2P Reserves (A$/BOVE) 35 30 25 20 15 10 5 0 L S Q O N H O C S M E G N L P N U ED E T ZA A E E TO P TU ZZ W P O O E R X P P O A U S O D Z Z M A V G S IP W O B P O N N H M M R A A A A P N C C C S S G M T A A 30 25 EV / 2P Reserves + Contingent Resources
Slide 31: Investment Proposition
Investment Proposition Discovered reserves underwrite current share price Unrisked value of discovered reserves 56 – 62 cps vs. current share price 29 cps Increase in share price expected as Maari development progresses Examples AWE, Beach, etc. Further significant increase anticipated as developmen
Slide 32: Please visit the Horizon Oil website
Please visit the Horizon Oil website www.horizonoil.com.au to see:- Detailed Investor Presentation Latest Quarterly Report Analyst reports on HZN
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