Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (November 2005)
15 slides from Horizon Oil's shareholder meeting presentation, Nov 25, 2005
Slide 1: Chairman's Address and Executive Director's Presentation
25 November 2005 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sir, ANNUAL GENERAL MEETING CHAIRMAN'S ADDRESS AND EXECUTIVE DIRECTOR’S PRESENTATION In accordance with Listing Rule 3.13.3, Horizon Oil Limited lodges the Chai
Slide 2: Chairman's Address: Introduction
CHAIRMAN’S ADDRESS HZN AGM 25 NOVEMBER 2005 Ladies and Gentlemen: 1. Introduction Once again – a warm welcome! At the outset, I must say how delighted I am to be able to drop the word “potential” from our description of the Maari Oilfield Project – as we announced this week, this project is now real
Slide 3: Scorecard for 2004/2005
- People - The outlook including management’s assessment of the reserves potentials of our Asset Portfolio 2. Scorecard for 2004 / 2005 As has been our usual practice, at last year’s AGM we presented our management priorities for the year ahead, noting that assessments of performance against those t
Slide 4: Scorecard comments: Maari development
At last year’s AGM we expressed our frustrations at the slow progress in the Maari field development decision making process. However, we now stand to reap the benefits of an appropriately cautious and disciplined approach towards project planning and analysis. The planning work (led by experienced
Slide 5: Bayou Choctaw, asset portfolio and share price
defend it vigorously. The Board is confident in the knowledge that the Company and its partners have conducted operations at Bayou Choctaw and maintained the property in accordance with high industry standards. - On building the asset portfolio, we have marked that down on the basis of the unsuccess
Slide 6: Relative share price performance
Relative share price performance Small Ordinaries Index Small Resources Index HZN HZN Maari Heavy institutional buying FID 200 Kapul results Maari 0.18 Relative Movement (Rebased to 100) Kapul drilling Bussabong JV FID drilling & Lei Dong acquisition 180 Block 22/12 drilling Block 22/12 results 0.16
Slide 7: Market discount and investor marketing
In addition, the experience of other development project participants is that until projects are not only firmly committed, but – more significantly – first production is about to occur, the market will continue to heavily discount the value of these projects. Some shareholders have expressed the vi
Slide 8: The Industry Environment
exploration drilling activity. Management deserves recognition for achieving this improvement in the quality of our share register. 3. The Industry Environment Turning now to oil prices and some of the consequences of the generally held view that the oil price is likely to “stay higher for longer” (
Slide 9: NYMEX Light Sweet Crude Forward Strip
NYMEX Light Sweet Crude Forward Strip 62 60 58 US$/Bbl 56 54 52 50 Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- 06 06 07 07 08 08 09 09 10 10 11 11 12 12 AGM Presentation 25 November 2005 Some of the consequences of this “higher for longer” outlook are: - substantially incre
Slide 10: Financing Issues
Nevertheless, we have been able to maintain a pipeline of opportunities (which Brent Emmett will more fully describe later) without compromising our strict selection criteria. - Indeed, in relation to the above point, the bullish environment requires even greater emphasis on cool, objective and disc
Slide 11: Financing the Maari Project
In January 2005 an underwritten share purchase plan raised $9.5 million after expenses and the August 2005 placement to Macquarie Bank injected $3 million. Cash on hand is currently $8.4 million (US$6.1 million), which is a sound position in the context of steady state operations and forecast commit
Slide 12: Equity raising and hedging
designed to concurrently accommodate the financing requirements of Horizon Oil’s other potential development assets. We are planning an equity raising within the next six months or so primarily to provide the equity component of Maari development costs. Whilst the specifics of this raising are yet t
Slide 13: People
We intend to make every effort to minimise shareholder dilution (by way of equity issues) until expected cash inflows (from Maari in particular) commence. In this context we will carefully screen the timing of significant expenditures on new business opportunities in the interim, and hopefully utili
Slide 14: The Outlook: Asset Portfolio
I am also delighted to report that Brent Emmett’s Service Agreement (the main terms of which are noted in the Remuneration Report) has been extended (on materially the same terms) for 5 years from 1 January 2006. In our view this is very good news for shareholders! 6. The Outlook Brent Emmett and Pa
Slide 15: Outlook conclusion
Whilst the positive impact on shareholder value of the green light for the Maari Project Development is self-evident, this slide supports our view that Horizon Oil has a well-balanced portfolio of other opportunities with the potential to add substantial additional shareholder value. Notwithstanding