Horizon Oil Limited · ASX:HZN
Horizon Oil — Excellence in Upstream Conference 2007
32 slides from Horizon Oil's conference presentation, May 23, 2007
Slide 1: Horizon Oil presentation at Excellence in Upstream Conference (ASX cover letter)
Horizon OH Limited ARN 515 3 Level 19, Suiie |, -O0 Willer Slreed Sydney NSW Auslratia 201 1 Yet —61 29332 5000, Pax —6) 29332 5030 wwewhonzorol.comau 23 May 2007 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) P
Slide 2: Excellence in Upstream Energy Conference
[ae ere ies PRODUCTION ahem nae POO CE -* APPRAISE Exce lence in Jootrearn Enerqy Conference ) 22~ 23 May 2007 2 Tris presentation contains same referancen to forward iooking assumptions, representations, estimates and outcomes. These are uncertain by the cuture ef the business and to aemurance can
Slide 3: Presentation Outline
MERE Presentation Outline » The mission » Overview of Horizon Oil » Reserves, production forecast and value » Key development assets e Maari field, New Zealand e Block 22/12, offshore China » Exploration and new business program e Focus on Asia e China e Thailand * Papua New Guinea » Why buy Horizon
Slide 4: Presentation Outline
VW Presentation Cutline > The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets ¢ Maari field, New Zealand e Block 22/12, offshore China Exploration and new business program e Focus on Asia e China ® Thailand e Papua New Guinea Why buy Horizon Oil (HZN)?
Slide 5: The Mission
VO he 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 Ulpstioam Presentation 2007
Slide 6: Why Focus on Asia?
Pee Viiny Focus on Asia? » Strong demand for oll and pipeline gas » Uncomplicated geological targets in productive fairways » Straightforward drilling and developmertt parameters » Mature operating environment » Gooe Gea Tow wilh lamited competition INDIAN OCEAN Ol and Gas Producing Regions 500 .ktB
Slide 7: Presentation Outline
VW Presentation Outline The mission Overview of Harizon Oil Reserves, production forecast and value Key development assets e Maari field, New Zealand ® Block 22/12, offshore China Exploration and new business program * Focus on Asia « China e Thailand * Papua New Guinea Why buy Horizon Oi! (HZN)? Ul
Slide 8: Location of Assets
ion OF Assets vy Bs De a OTS Tar ike ae ie NEW ZOLA Pep eu asa y | Lo Ulpstioam Presentation 2007
Slide 9: Asset Summary
Pe) Asset Summary » 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 >» PEP 38413, offshore New Zealand: 10% Manaia » PRL 4: 27.95% and PRL 5: 10.36%, onshor
Slide 10: Trading Statistics
i Be Trading Stati stics (as at 21 May ‘07) | This month Last $0.290 High $0.345 speak ies Low $0.290 Shareholder Distribution Volume 22,371,102 a 12 Months Oasis Energy Last $0290 {incl High $0.480 : management) Low $0.270 Retail 20.1% Volume 229.2 million 33.0% Fully paid shares 735.55 million Par
Slide 11: Presentation Outline
VW Presentation Outline » The mission » Overview of Horizon Oil » Reserves, production forecast and value » Key development assets e Maari field, New Zealand ® Block 22/12, offshore China » Exploration and new business program * Focus on Asia « China e Thailand * Papua New Guinea » Why buy Horizon O
Slide 12: Reserves, Resources and Exploration Potential
7 Reserves, Resources and Exploration Potential Net Reserves in Development and Appraised tor Development Block 22/12 Wei 12-8 area 3 Block 22/12 Wal 6-12 area 5-6 Total 15- #8 mmbo overage oll in millions of oarrele Net Reserves Awaiting Appraisat Maar (other zones + Manaia) 1-2 Block 22/12 Wei 122
Slide 13: Production Forecast and Value
WO Production Forecast ~ Value PRODUCTION FORECAST ~ Net daily olf (oopd) Maeart and Wel 6-125 on production beginning in 2008... 12000 in 2007 2008 2000 2010 2014 2082 2019 2014 2088 2018 Mazei 0 Measi Other Zones B 22/12 Wei 6-128 20/12 Wei 12-8W © 22/12 Other Discoveries @ New Business wo igenera
Slide 14: Presentation Outline
VW Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets e Maari field, New Zealand ® Block 22/12, offshore China Exploration and new business program * Focus on Asia « China e Thailand * Papua New Guinea Why buy Horizon Oi] (HZN)? Ul
Slide 15: Maari Development - New Zealand
Be Maari Development ~ New Zealand Horizan.Oil Platform and FPSO 54% and 62% complete on a 50+ mmbo oilfield... New Piymouth y Oil) Condensate pipeline = 0! Gas Well Gas pipeline © 01 abandoned Methanol /.PG pipeline a : f , Horizon Oil Pennit i SAMBO Ol Fields 0 NGAIORG > Gas Gor densate Fletds : :
Slide 16: Maari Development Progress
Eee Maari Development Progress _Horizon.Oi_ » 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
Slide 17: China 22/12 - Discoveries & Prospects
Pa China 22/12 ~ Discoveries & Prospects | 60+ mmbo recoverable reserves discovered... Wei 2 South PSO 50-80 mmb OIF ment em : ’ Wei 6-12 SE P50 48 mmb O1P Wei 642 ee Wei 6-12 SW . i P50 56 mmb GIP oy oe Wei 12-2 Field P50 50-59 mmb OIP Mn Wei 12-8 E Field Wei 12-8 W Field ; ; ___P50_88 mmb OIP ree
Slide 18: Block 22/12 Development Planning
Ma Biock 22/12 Development Planning Stand-alone development concept Processing / production platform with 20,000 — 25,000 bopd capacity va Development candidates 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 fa
Slide 19: Wei 6-12 South Discovery
Wei G-12 South Discovery Horizon.Oi 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 drill
Slide 20: Wei 6-12 South Discovery
Pe ei 6-12 South Discovery Wei 6-12S-1Sb Wei 6-125-1 NNE Well Path Trajectory AKO 922 Wai 6-125-15a THC Sand |e Sand Core 3 Trays 6-8 UV Photegraphy 732 Upper Sand PAL BRET AMD) EIGER wo #122 Lower Sand |] of ED BERS oo SS HEO> highest Rao off from lage LAO = fowest &mowe ad from loge Ulpstzoam Pres
Slide 21: Amplitude Anomalies over Block 22/12
We Amplitude Anomalies over Bloc several anomalies remain to be drilled Ulpstzoam Presentation 2007
Slide 22: Presentation Outline
VW Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets e Maari field, New Zealand ® Block 22/12, offshore China Exploration and new business program * Focus on Asia « China e Thailand * Papua New Guinea Why buy Horizon Oi] (HZN)? Ul
Slide 23: Focus on Asia
Yo Focus on Asia _Horizon.0j » Strong demand for oll and pipeline gas » Uncomplicated geological targets in productive fairways >» Straightiorward drilling and developrnent parameters » Nature operating environment » Good deal flow with lamited competition INDIAN OCEAN Oll and Gas Producing Regions
Slide 24: Lei Dong Block 24/05
Pe Lei Dong Block 24/05 An entire virgin basin in which to follow up Block 22/12 success... WEAR SAB Billion BO Discovered CNOOC Producing 26,000 BOPD BEIBU GULF BLOCK 2212 Horizon Of 30% Area 456 sq km \ BRUIOING GAG Gas Discovery WS SAR Oll Discevery, Husky Energy Exploring Le G Mining Oi a Shale
Slide 25: Lei Dong Block - Structures and Leads
Bo .@| Dong Block - Structures and Leads HorizanOiL 149° 40°" 141° 00" ii 20” 111° 40"" Lead Area (kim2) Pay Cn} Univigked Prospect Potential Gaumbe} G1 a0~ 20-120 o-2 20+ 20-120 10-2 I 16-80 tek = 20-180 Pek aO~ 26-89 4* Leads 50-200 inl Apparent Structures Stratigraphic and Drape Laads Potential S
Slide 26: MALACCA.
we MALACCA. STRAIT if of Thailand > Gas pipeline Proposed Gas pipeline Ae ag ci) Development Ares 0 ein army es Ulpstzoam Presentation 2007
Slide 27: Thailand Prospects and Leads
Se Thailand Prospects and Leads Oi and gas plays in a proven trend... ‘Gas Fields: / Discoveries: Gas pipeline Proposed Gas pipeline : ae oa Malaysia: tal doint Development Alea -7tct cS _.with net unrisked potential of 30 ~ 170 mmbo and 430 ~ 1,550 bef Ulpstzoam Presentation 2007
Slide 28: Papua New Guinea recoverable resources
ea Papua New Guinea 2 recoverable resources s of 524 bef gas and 25 mmb condensate... PACIFIC OCEAN PRLS (10.38%) g)) ElevalaKetu (hag Condensate ai gg ee a Horizon 0 Permit Kutubu Oi Pipatine il Fates Gag. Pinks IE MARINE OAL GULP OF PAPLA development options emerging Ulpstzoam Presentation 2007
Slide 29: Presentation Outline
VW Presentation Outline The mission Overview of Horizon Oil Reserves, production forecast and value Key development assets e Maari field, New Zealand ® Block 22/12, offshore China Exploration and new business program * Focus on Asia « China e Thailand * Papua New Guinea Why buy Horizon Oil (HZN)? Ul
Slide 30: EV/2P Reserves
EV /2P Reserves (A$S/BOVE EV /2P Reserves + Contingent Resources (A$/BOVE YS'S.cOM. au www.stockanal Chart data by Peter Strachan Ulpstzoam Presentation 2007
Slide 31: Investment Proposition
Pe 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
Slide 32: rrr
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