Horizon Oil Limited · ASX:HZN
Horizon Oil — Q2 2015 Earnings Presentation
25 slides from Horizon Oil's earnings presentation, Jul 13, 2015
Slide 1: June 2015 Quarterly Report Presentation
For personal use only 13 July 2015 The Manager, Company Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 JUNE 2015 QUARTERLY REPORT PRESENTATION Please find attached the Company’s June 2015 quarterly report presentation. Yours faithfully, Michael Sheridan Chief Financial Of
Slide 2: 2014/15 June quarter results presentation and activities update
For personal use only HORIZON OIL LIMITED ABN 51009799455 2014/15 June quarter results presentation and activities update - July 2015 This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of the business
Slide 3: 2014/15 June quarter results summary
2014/15 June quarter results summary For personal use only June quarter Annual Production 0.37 million bbls 1.31 million bbls Sales 0.32 million bbls 1.21 million bbls Average realised price/bbl US$78.00 US$85.59 Revenue US$25.1 million US$104.0 million Operating cost/bbl US$9.99/bbl US$17.36/bbl1 N
Slide 4: Highlights for financial year ending June 2015
Highlights for financial year ending June 2015 For personal use only 70%
Slide 5: Horizon Oil (HZN:AU) at a glance
Horizon Oil (HZN:AU) at a glance For personal use only Sydney-based public company listed on Australian Securities Exchange and in ASX 300 Index Portfolio of exploration, development and producing assets in Asia-Pacific region Shareholding: IMC (Singapore) - 28%, institutions - 40%, high net w
Slide 6: Shareholder distribution and trading statistics
Shareholder distribution and trading statistics For personal use only June 2015 (to date) Last $0.083 High $0.390 Low $0.083 Volume 49,734,456 12 Months Last $0.083 High $0.390 Low $0.083 Volume 787.29m Fully paid shares 1,302m 1 Partly paid shares 1.50m 2 Employee options 11.44m General options 3.5
Slide 7: Key performance measures – last five calendar years
Key performance measures – last five calendar years For personal use only Completion of Maari Growth Projects expected to increase production in 2015. Revenue will maintain in 2015 even with lower oil prices, because of Production from Beibu Gulf will be maintained through 2015, despite field the be
Slide 8: Asset portfolio
Asset portfolio For personal use only Clear geographic focus on Asia-Pacific region Technical focus on proven, conventional plays with scale, upside and manageable risk * Working with experienced partners such as CNOOC, OMV, Mitsubishi and Osaka Gas Currently producing oil but will have a di
Slide 9: Horizon Oil assets – fiscal regimes
Horizon Oil assets – fiscal regimes For personal use only 25% 100% Government Government Take (oil) Take (oil) Very Favourable Favourable Average Tough Very Tough Spain Croatia Denmark Nigeria Qatar Ireland Philippines Cote d`Ivoire Suriname Indonesia French Guiana Equatorial Guinea Cameroon Norway
Slide 10: Net reserves, Contingent Resources and Prospective Resources
Net reserves1, Contingent Resources1 and Prospective Resources1 as at 31 December 2014 For personal use only RESERVES CONTINGENT RESOURCES PROSPECTIVE RESOURCES Proven + Probable Proven + Probable Best Estimate Total: 14.2 mmboe Total: 20.5 mmboe Total: 17 mmboe 400 bcf 202 bcf Long life of reserv
Slide 11: Balanced portfolio – focus on resource development
Balanced portfolio – focus on resource development For personal use only Large audited reserves and contingent resources base 11% developed / 89% undeveloped – 34% oil / 66% gas 11 mmboe 24 mmboe 67 mmboe 2P + 2C reserves and contingent resources of 101 mmboe 13 July 2015 10
Slide 12: Forecast net production from Reserves + Contingent Resources
Forecast net production from Reserves + Contingent Resources as at 31 December 2014 For personal use only 18,000 16,000 Expect to be able to maintain oil production of 4,000 – 6,000 bpd 14,000 ahead of future large scale gas Barrels of oil equivalent per day 12,000 commercialisation 10,000 PNG g
Slide 13: Beibu Gulf field production and future development areas – China
Beibu Gulf field production and future development areas – China For personal use only WZ 6-12N and WZ 12-8W fields producing above forecast Potential for higher oil recovery from WZ 12-8W Phase II WZ 12-8E development plan to be submitted for Government approval by end 2015; audited gross 2C
Slide 14: Beibu Gulf fields – phased development scheme
Beibu Gulf fields – phased development scheme For personal use only Phased approach to development of new reserves – utilising existing infrastructure 13 July 2015 13
Slide 15: Papua New Guinea
Papua New Guinea For personal use only PNG is rich in oil, gas and minerals with track record of successful large-scale development projects Stable fiscal regime and succession of “pro- development” governments Jurisdiction well-supported by lenders Horizon Oil acreage position ~7,900 sq km
Slide 16: Horizon Oil acreage and joint venture partners - Papua New Guinea
Horizon Oil acreage and joint venture partners - Papua New Guinea For personal use only Successful Tingu-1 exploration/appraisal well drilled in 2013 extended PRL 21 gas / condensate resources materially Development application for Elevala/Tingu/Ketu fields in PRL 21 filed in March 2014 Develo
Slide 17: Stanley and Elevala/Ketu field development schemes
Stanley and Elevala/Ketu field development schemes For personal use only Stanley field Petroleum Development Licence awarded in May 2014 Development drilling subsequently completed, both wells Stanley-3 and -5 met or exceeded expectations Elevala and Tingu to be developed as one field Eleval
Slide 18: PNG gas commercialisation options
PNG gas commercialisation options For personal use only Sales to regional buyers for power generation − Ok Tedi Mining Limited (OTML) and Frieda River project (when sanctioned) − Local towns and communities in Kiunga – Ok Menga – Frieda River corridor − Export to West Papua: Merauke, Jayapura Mi
Slide 19: Maari/Manaia fields – New Zealand
Maari /Manaia fields – New Zealand For personal use only Maari field facilities and FPSO Raroa repaired and upgraded in H2 2013 Maari Growth Projects Program successfully completed and Ensco 107 jack-up rig released in July 2015 Field production currently 16,000 bopd+ Workover program about
Slide 20: Response to current low oil price environment
Response to current low oil price environment For personal use only Brent oil price Operating income substantively maintained by oil price hedging 2014 – mid 2016 and reduced opex Capex for 2015 materially reduced and discretionary expenditure minimised Target capex + net G&A for calendar year 2
Slide 21: Strong risk management with a well established hedging policy
Strong risk management with a well established hedging policy For personal use only Oil price hedge profile 842,500 mmboe hedged from 1 Jan 2015 through mid 2016 at average of US$95/bbl. Oil price hedging program means cash flows in 2015 and 2016 not critically impacted by low oil prices. Prod
Slide 22: Forecast net operating income 2015-2017
Forecast net operating income 2015-2017 For personal use only Calendar Year 2013 Actual1 2014 Actual1 2015E 2016E 2017E Assumed oil price US$60/bbl US$65/bbl US$75/bbl Operating income after opex (including the Special Oil Gain 62 91 82 90 80 Levy payable in China) and excl extraordinaries2 (US$m) S
Slide 23: Balanced portfolio – focus on resource development
Balanced portfolio – focus on resource development For personal use only Large audited reserves and contingent resources base 11% developed / 89% undeveloped – 34% oil / 66% gas 11 mmboe 24 mmboe 67 mmboe 2P + 2C reserves and contingent resources of 101 mmboe 13 July 2015 22
Slide 24: Strategic priorities
Strategic priorities For personal use only Focus on growing Horizon Oil to be an E&P leader in Asia-Pacific upstream space Optimise oil and gas production from our existing producing fields Develop discovered resources within our existing asset portfolio, taking advantage of anticipated capita
Slide 25: For personal use only
For personal use only 13 July 2015 24