Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (November 2005)
37 slides from Horizon Oil's shareholder meeting presentation, Nov 25, 2005
Slide 1: Le { q A Ke Lk. Me
Le { q A Ke Lk. Me TXT ation ee ie some references jo forward uMpudns paplecentotions, ecliuiates and 1 ieee ate uncertnn by the nature of the arg 00 assurance can be given hy Hovizan Oil | bed that ite expectations, catimates and forecast : cones oe ered. Actual results may val
Slide 2: TXT
TXT These are utice tain by ane, auiee ih the Ress aod 10. Ce can be given by Horizon Oj) Limited that ite: ne estimates, ane forecast, icomes
Slide 3: Performance Scorecard
oe Performance Management Priorities 2004 / 2005 (as presented to 2004 AGM) 2 Scorecard Outcome / Status - Follow up on Kapul, if warranted Grow Bayou Choctaw production with re-completion and development drilling programmes Commit to Maari FID and begin design and construction phase Submit 12-8 Wes
Slide 4: Relative share price performance
“ Relative share price performance SS — Small Ordinaries Index ------ Small Resources Index HZN 50 Heavy Institutional buying 5 =D 0.18 Ss 4 Kapul drilling an results Bussabong y Nea , o 184 Block 22/1 Lei Dong acquisition drilling & | L O16 - ” Block ee Block 22/12 devt study | , = results 160 | r
Slide 5: Light Sweet Crude Forward Strip
Ss ight Sweet Crude Forward Strip Jan- Juk Jan- Jub Jan- Juk Jan- Jul Jan- Jul Jan- Jul Jan- Jul 06 06 OF «#6070606 608lhlhlU08:h 609 S08 1010s Ht 11 12 12 AGM Presentation 25 November 2005
Slide 6: Asset Portfolio
Asset Portfolio Table of Interests: Maari, PEP 38413, NZ 10% Block 22/12, China 30% Bayou Choctaw, USA 14% -28.5% PRL 4&5, PNG 7.25% Lei Dong, China 100% Net Reserves / Resources (Unrisked) Expl * Appraisal Pre Dev Develop * Excl. results of GOT bids AGM Presentation 25 November 2005
Slide 7: Ln iii aii
Ln iii aii TXT ation ee ie some references jo forward uMpudns paplecentotions, ecliuiates and 1 ieee ate uncertnn by the nature of the arg 00 assurance can be given hy Hovizan Oil | bed that ite expectations, catimates and forecast : cones oe ered. Actual results may val
Slide 8: Game Plan - Revisited
EGame Plan - Revisited » Return of multiples on investment » Balanced portfolio —- mix of exploration plays and development projects » Extended timeframe - to grow and extract maximum value from the asset base - to capitalise on continuing environment of high commodity prices - to take advantage of
Slide 9: Asset Portfolio
Asset Portfolio Table of Interests: Maari, PEP 38413, NZ 10% Block 22/12, China 30% Bayou Choctaw, USA 14% -28.5% PRL 4&5, PNG 7.25% Lei Dong, China 100% Net Reserves / Resources (Unrisked) Expl * Appraisal Pre Dev Develop * Excl. results of GOT bids AGM Presentation 25 November 2005
Slide 10: Reserves and Resources (1)
sand Re £3 Oe aurces (i. Une, ia Asset Location Gross 2P Reserves Horizon Oil Net 2P Reserves (mmbo) ' Interest (mmbo) ! % Development Maari field Offshore New (Moki formation) Zealand 50 - 56 10 5-6 Offshore Louisiana, Bayou Choctaw field USA 12-16 14 - 28.5 2-3 Pre-development Maari (other zones a
Slide 11: Reserves and Resources (2)
sand Resources (2) Asset Location Gross Unrisked Mean Horizon Oil Net Unrisked Mean Reserves Potential Interest Reserves Potential (mmbo)' % (mmbo)' Appraisal PRL 4 (Stanley discovery) and PRL 5 (Elevala/Ketu Onshore Papua New discoveries) Guinea 80 - 120° 7.25 6-9 Exploration Block 22/12 (6-12 area
Slide 12: Net Production Forecast
# Net Production Forecast On current plans, production peaks in 2006/09... 10000 O Bayou Choctaw @ 12-8 West © Maari m 22/12 Follow-up O Maari Upside @ Risked New Business 9000 8000 7000 6000 5000 Bopd 0 T T T T T T T T T 1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ._. generating signif
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Slide 14: Maari Field Location
& iM@ari Field Location Et oo Alethang fio Hon Gm Oiland Gm Gas Condensaie Fields Ol end Gas Well -# * ALPS gpeline Cal Permit 1s Piolds abandoned shes. DEVELGPIMENT CONCEP? PPSC pe PEP 38413 (70.0%) Wear “oh © MABAIA 4 ¥ MAMALA \ PEP 38413 : twa 432 sq kro LL AGM Presentation 25 November 2005
Slide 15: Stratigraphy & STOOIP Estimates
[Stratigraphy & STOOIP Estimates Horizon.Oj) 10k - sells A 4 m > A e nie 400 LI PLEISTOCENE ie 1000 MIOCENE | 000 Moki & Kapuni ae oo | Moki, M2A & Kapuni STOOIP ca. 60-70 MMbo : | STOOIP ca. 170 MMbo Maneia Structure |_| | eepun eeu _ Maari Structure AGM Presentation 25 November 2005
Slide 16: Subsurface Development Plan
gag Subsurface Development Plan cheat el zy. i SS Well eerie Locations Approximate i - (or lateral) : ED . | bya 4 led g oo \ = So eee uy . — — _ yee NINE 2 LAER
Slide 17: Production Forecast - Moki Only
Production Forecast ~ Moki Only 14 60 Oil Rate (Million barrels per year) Cumulative Oil production (MMbbls) 0 1 2 3 4 5 6 7 8 9 10 «110612 ~«613¢~«édMA:C‘'SS Production Time (Years) AGM Presentation 25 November 2005
Slide 18: Maari Development Scheme
iMaari Development Scheme Floating Production Storage Weilhead Platform Offloading (FPSO) ubsea Pr duction, Test, - Water Injection, and Umbili injection wells
Slide 19: Issues and Solutions
ues and Solutions Wax / Flow Assurance Downhole Heating Continuous Production Dry Trees / WHP Easy Access & Intervention Heated Injection Water No Wax in Reservoir Workover Unit Easy & Speedy Well Repairs Process Heating Continuous Process & Offtake Reservoir Performance High Rate ESPs High Producti
Slide 20: Typical Subsea Layout
Typical S hh Le 1. la inn AGM Presentation 25 November 2005
Slide 21: Typical WHP
ver Typical WHP ase ve AGM Presentation 25 November 2005
Slide 22: FPSO General Arrangement
FPSO General Arrang a Riser options are Lazy Wave or Lazy S Concept: Internal Bow Mounted Turret with Catenary Mooring AGM Presentation 25 November 2005
Slide 23: Financing
fa Financing we Total development cost US$360 million Highly bankable project Bank of Scotland International providing attractive project finance High return on equity to Horizon Oil Hedging used to provide revenue and debt-payback protection while allowing access to oil price upside AGM Presentatio
Slide 24: Waberfenes,
1 Waberfenes, i | i Biveicnmnin ay q Detiiien, Algymentd Fiawtie eh Co. ee 2 ssuluelt |, Shnply WON Facilities ‘Camrninesh | i gupely ‘Walmads. B. Teieee | Sppply Casing & Tutieg Supgly WHE ex
Slide 25: Bayou Choctaw Field - USA
Dee Bayou Choctaw Field - USA A Gulf Coast salt dome with shallow production, deeper potential... : 7B - VICTORY LEASE TRACT 1 Area 285 Acres Horizon Oil 28.5% VICTORY LEASE TRACT 2 Area 200 Ares Horizon Oil 14.0% WILBERT TRACT © Ci Well Area 1743 Acres Gas Well Horizon Oil 19.8% & Oil and Gas Weil
Slide 26: Seismic over Bayou Choctaw
i Seismic over Bayou Choctaw & Present Producer i\ i Potential Updip Location Meprocessing of the 3D seismic has led to improved definition of exploitation and exploration targets AGM Presentation 25 November 2005
Slide 27: Block 22/12 - China
Pe Block 22/12 - China Pre-cevelopment reserves in a producing basin... a a Sy Washi 1 “Be by Washi 1-3-1 Wei 612 Prospects ‘Waisted sind Peoductinn: Faxitities BLOGK 22/12 Area 496 sy km | “ ‘Wei 105 sah Retde Bien _awhere around 1 billion bbls of oi! have already been discovered AGM Presentation 2
Slide 28: A unique, cooperative and collaborative development approach
A unique, cooperative and collaborative development approach... « Concept » Unmanned minimal structure(s) (water depth 30 m) connected by flowlines to CNOOC 12-1 platrorm » Crude processing and export carried out on 12-1 platform » Processing and transportation fee paid to CNOOC » Strong local marke
Slide 29: Prospects
{ia Prospects Horizon Oj) Wei 6-12 area prospects and leads with 40 — 50 mirnikbe reserves potential ei 6-12 Weet Wel 6-12 SE Wei 6-12 Southwest Skin AGM Presentation 25 November 2005
Slide 30: Prospect Geophysics
Ms Prospect Geophysics Seismic attributes being used... Near Cfisel. I COT Wei G-12-4 Seismogram TBA, 120 T3t Tag Sunthetic Asis ecascaroen if) Offset ...to reduce prospect risk AGM Presentation 25 November 2005
Slide 31: Lei Dong Block 24/05
Dong Block 24/05 Morizon Oil has access to an entire virgin basin... es JOO? RSL ig Oil Shale . surrounded by five productive analogue basins AGM Presentation 25 November 2005
Slide 32: Seismic acquisition comparison
947 1985km = 2km*4km 25m shot 25m group 96 ch 48 fold 950 205km = 1km*ikm 25m shot 12.5m group 120 ch 60 fold | 3145ki igi
Slide 33: New Business Focus Area
M77 New Business Focus Area Focus is South China Sea north and east of Malacca » Uncomplicated geological targets with productive analogues » Stable jurisdictions where we have experience and contacts » Markets for oll and gas » Mature and easy operating environment » Acceptable fiscal terms » Deal
Slide 34: Gulf of Thailand
Pe ul of Thailand Horizon Oil is part of a group | — 2 Open 2005 mga . bidding on 2 open blocks inthe oll and gas fairway AGM Presentation 25 November 2005
Slide 35: Management Priorities 2006
Ps Management Priorities 2006 cheney £) il Raise equity finance for Maari and proceed with construction phase of project Build production at Bayou Choctaw with development drilling and re- completion; generate exploration prospects Commit to 12-8 West FID and begin construction phase; drill 6-12 Sou
Slide 36: Activity Schedule
We Activity Schedule Task Namie 4 BOGS. 2006. 2007 i 2008 iow JanMar May Jul opp Nov Jan Mar May Ju es Jani Mar hae bul: Jul ep Mov) Jan Mar May Jul Bayou Choctaw Workover of Existing Zones — Workover of New Zones (2 wells; : ES] Warkover of New Zones (G wells) : : eeeer| PUD Drilin : { +7 wells} St
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