Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q2 FY2018 Earnings Presentation
26 slides from Hindustan Oil Exploration's earnings presentation, Oct 30, 2017
Slide 1: Investor Presentation, 30 October 2017
INVESTOR PRESENTATION, 30 OCTOBER 2017 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall n
Slide 3: Contents
Contents 1 Q2 FY 17-18 Highlights 2 Company Overview 3 Growth Strategy 4 Key Strengths HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 3
Slide 4: Q2 FY 2018 Highlights & Plans
Q2 FY 2018 Highlights & Plans Debt free balance Sheet & self funding for organic growth. Strong financials Gross working capital ₹ 194 Crores includes ₹ 153 Crores cash and cash equivalent. Dirok gas & condensate commercial sales commenced on 26 August 2017 and continuing Dirok Gas Modular G
Slide 5: Company Overview
Company Overview Strong portfolio of Discovered Resources Founded as the very First Oil and Gas Diverse Investors with Professional Board Company in private sector by late Debt free balance sheet with funds for Organic Shri. H. T. Parekh Growth Portfolio of 9 Blocks with discovered resources Presenc
Slide 6: HOEC Shareholding Pattern & Board Members
HOEC Shareholding Pattern & Board Members Shareholding Pattern (more than 10 %) HDFC 10.79% 75.06% 14.15% (78,000+) Retail & Others AKGT Board of Directors Sunil Behari Mathur P.K. Borthakur Sharmila Amin P. Elango R. Jeevanandam Chairman Director Director Managing Director Director & CFO Note: Shar
Slide 7: Growth Strategy
Growth Strategy Enhance Cambay • Infuse capital to enhance Revive Offshore production from existing fields • Acquire additional acreage Focus on North East • PY-1 Re-entry campaign planned through OALP and HELP bidding to enhance production rounds • Ramp up production capacity • Fast track developme
Slide 8: Assam (AAP-ON-94/1): Step-up Production
Assam (AAP-ON-94/1): Step-up Production Dirok gas and condensate commercial sales commenced on 26 August, 2017 & continuing Modular Gas Processing Plant and all facilities to be commissioned before 31 March, 2018 Production capacity to be 36mmscfd of gas and 1000 barrels of condensate from 6 w
Slide 9: Assam: Attractive fiscal terms
Assam : Attractive fiscal terms ▪ Past Cost (Exploration & Appraisal) carry of $100 Million, HOEC entitled to higher revenue share in Initial years ▪ Cess and Royalty is paid by the licensee Oil India Limited ▪ No profit petroleum during initial years Attractive ▪ Over 75 % operating margin at a pri
Slide 10: Growth Opportunity: Prolific Dirok
Growth Opportunity: Prolific Dirok Dirok 4 Girujan Girujan Tipam Tipam Tipam Barail Barail Barail Disang Disang Map Not to Scale Dirok field is endowed with Girujan, Tipam and Barail Formation Potential exist for both increasing reserves and improving recovery factor on well performance. Reser
Slide 11: Next Focus: Increasing Production from PY-1
Next Focus: Increasing Production from PY-1 Significant Resource Base ▪ Significant resources exists in this fractured granite basement reservoir Planned Activities ▪ Re-entry of wells targeting Mercury hill and Earth tertiary sand is planned in Q1 FY 18-19 to enhance production . ▪ Being re-entry f
Slide 12: Focus 'First Oil' B-80 (Mumbai High-DSF block)
Focus ‘First Oil’ B-80 (Mumbai High–DSF block) Discovered Resource Base ▪ In house estimate of resources is STOIP 40 million barrels & 26 bcf of gas ▪ Tested production rates oil : 3737 bopd and gas 7.90 mmscfd ▪ Two pay zones Panna 200 & 300 Planned Activities under Phase -1 of FDP ▪ Drill two new
Slide 13: PY3 and PY1 Integration
PY3 and PY1 Integration PY-3 field was shut-in on 31 July 2011 when it was producing 3000+ bopd without any sub- surface issues. Field has potential to produce 7000+ bopd with an additional well and side track of one existing well. HOEC has 21% stake in PY-3 operates PY-1 Gas field with an off
Slide 14: Cambay Marginal Fields
Cambay Marginal Fields Wells: 9 wells (2 Producing) North Reservoir : Balol, Babaguru & Kand Balol Sands Reserves : 2P (100%): 6.79 BCF (PI: 25%) Gross Prod. Q2 FY 17-18 (100%): 37.3 mmscf Wells : 6 wells (2 Producing) Asjol Reservoir : Upper Suraj Pay Sandstone Reserves : 2P (100%): 0.6 mmbbls (PI
Slide 15: New Blocks: Kherem (Arunachal Pradesh)
New Blocks: Kherem (Arunachal Pradesh) Block Area: 16.45 Sq. Km. Drilled Wells: 3 Tested Production: ➢ Oil 402 bopd ➢ Gas not measured Discovered Resources: DSF Data HOEC Internal Resources Million BBLs Million BBLs STOIIP 3 10.27 GIIP (BCF) 17 54.19 Bordumsa OCS N Reservoir Properties: 6’
Slide 16: Key Strengths
Key Strengths Proven development and operating experience in both onshore and offshore with multiple JV partners Professional management & competent technical team with rich oil and gas experience Debt free balance sheet & Investment cycle to cash 12-18 months . Ability to raise capital for inorgani
Slide 17: Annexure
ANNEXURE
Slide 18: Statement of profit & loss Q2 FY 2018
Statement of profit & loss Q2 FY 2018 For the quarter April to July to Particulars July to June 2017 Sep 2016 Sep 2017 ₹ millions ₹ millions ₹ millions INCOME Revenue from operations 84 37 56 Other income 33 45 61 Total revenue 117 82 117 EXPENSES Expenses from producing oil and gas blocks 30 25 25
Slide 19: Statement of Assets and Liabilities Un-Audited
Statement of Assets and Liabilities Un-Audited As at As at As at As at ASSETS EQUITY AND LIABILITIES Sep 30, 2017 Mar 31, 2017 Sep 30, 2017 Mar 31, 2017 ₹ millions ₹ millions ₹ millions ₹ millions Non-current assets Shareholders’ funds (a) Property, Plant and Equipment (a) Equity share capital 1,305
Slide 20: Investment Multiples
Investment Multiples Block AAP-ON-94/1 PY-1 PY-3 N. Balol Asjol CB-ON-7 Royalty & Cess Nil (Licensee) 10% Nil (Licensee) 10% Nil (Licensee) Nil (Licensee) Cost Recovery limit 80% 100% 100% 80% 100% 60% Investment Multiple <1 0% 0% 0% 20% 0% 0% 1<1.5 10% 5% 5% 20% 10% 25% 1.5<2 25% 5% 5% 30% 20% 30%
Slide 21: Development Cost Optimized Through Innovation
Development Cost Optimized Through Innovation Logbaba EPF- Camerroon Built by Expro • Early Monetisation • Adoption of Modular Gas Processing • M-GPP contract on build, maintenance through a 4” parallel ( M-GPP) on Opex Model results in and operate (BMO) model awarded to pipeline to connect to ✓ Red
Slide 22: Professional Management Team
Professional Management Team P ELANGO Managing Director • Over 28 years of experience in Upstream Oil & Gas Sector • Held several leadership roles in different areas of the business and is a recognized leader in the Indian industry • Earlier CEO of Cairn India, played a key role in building Cairn in
Slide 23: Strong Technical Capabilities
Strong Technical Capabilities B. C. Gariya Sagar N. Mehta P R Krishna Debabrata Panda Exploration Manager & Head-Cambay Business Unit Asset Manager (Assam) & Head – Drilling & Completions Head Technical HOEC Head – Contracts & Procurement Indreshwar Bharali P. B. Raju S. S. Josyula D. S. Mohan Senio
Slide 24: Asset Portfolio (Production / Development)
Asset Portfolio (Production / Development) Opera Block Name Location Oil/Gas PI Partner(s) tor ASSAM-ARAKAN PY-1 HOEC Offshore Gas 100% Nil Kherem CB-ON-7 HOEC Onshore Oil 35% North Balol AAP-ON-94/1 Asjol North Balol HOEC Onshore Gas 25% CB-OS/1 CB-ON-7 Asjol HOEC Onshore Oil 50% CAMBAY AAP-ON-94/1
Slide 25: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Hindustan Oil Exploration Company Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L11100GJ1996PLC029880 CIN: U74900MH2014PTC259212 G. Josephin Daisy Gaurang Vasani/ Pooja Dokania jdaisy@hoec.com vgaurang@stellar-ir.com/ dpooja@
Slide 26: Glossary
Glossary 2P - Proved + Probable reserves BCF - Billion Cubic Feet of Gas GGS - Gas Gathering Station M-GPP - Modular Gas Processing Plant MMbbls - Million Barrels of Oil MMSCFD - Million Standard Cubic Feet per Day MMSCMD - Million Standard Cubic Meter per Day STOIIP - Stock Tank Oil Initially In Pl
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