Horizon Oil Limited · ASX:HZN
Horizon Oil — Investor Presentation (April 2009)
25 slides from Horizon Oil's investor presentation, Apr 8, 2009
Slide 1: Horizon Oil Share Placement and Share Purchase Plan announcement
For personal use only 8 April 2009 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) SHARE PLACEMENT AND SHARE PURCHASE PLAN Please find attached a presentation in respect of the Company’s proposed capital raising
Slide 2: Private Placement and Share Purchase Plan of up to 220 million shares
HORIZON OIL LIMITED ABN 51 009 799 455 Private Placement and Share Purchase For personal use only CONFIDENTIAL Plan of up to 220 million shares April 2009 This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the na
Slide 3: Disclaimer
DISCLAIMER For personal use only DISCLOSURE DOCUMENT NOT REQUIRED Ø This presentation is provided to you so that you can consider an invitation to participate in a proposed offer of ordinary shares in Horizon Oil Limited (“Horizon Oil”). Do not rely on this information Ø This information is based on
Slide 4: Overview
Overview For personal use only § Horizon Oil is an Asian-focused mid cap E&P company based in Sydney with a current market cap of ca A$104 million (~US$74 million) § The Company is seeking to raise up to A$22 million (US$15.5 million) through the issue of up to 220 million ordinary shares in the Com
Slide 5: Horizon Oil Statistics
Horizon Oil Statistics For personal use only 50,000,000 SHARE PRICE HISTORY $0.60 45,000,000 $0.50 40,000,000 35,000,000 $0.40 TRADING STATISTICS 30,000,000 Volume This month Price 25,000,000 $0.30 Last $0.130 20,000,000 High $0.155 15,000,000 $0.20 Low $0.105 Volume 19,588,412 10,000,000 $0.10 5,00
Slide 6: Horizon Oil Board and Management
Horizon Oil Board and Management For personal use only NON-EXECUTIVE RESPONSIBILITIES EXPERIENCE DIRECTORS Fraser Ainsworth AM Chairman of Board, Chairman of Remuneration, 28 years in CSR’s resource & energy business, former MD of Delhi, former MD of B.COMM, FAICD, FCPA Nomination and Disclosure Com
Slide 7: Asset Location – Focus on SE Asia
Asset Location – Focus on SE Asia For personal use only Productive fairways, mature operating environment … …strong demand for oil and gas Page 6
Slide 8: Reserves and Resources
Reserves and Resources For personal use only Net recoverable in millions of barrels of oil equivalent RESERVES RESOURCES Maari (other zones + Manaia) PRL 4 (Stanley) 4 mmbo PRL 5 9 mmbo (Elevala/Ketu) Block 22/12 13 mmbo Wei 12-8 area 4 mmbo Maari 6 mmbo PRL 5 Block 22/12 PRL 4 (Stanley) (Elevala/Ke
Slide 9: Net Production Forecast
Net Production Forecast1 For personal use only Maari on production in February 2009… 18000 16000 14000 B 12000 O 10000 E 8000 P D 6000 4000 2000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Maari Maari Other Zones 22/12 Wei 6-12 22/12 Wei 12-8 area Stanley condensate Stanley gas New Business
Slide 10: Maari Development – New Zealand
Maari Development – New Zealand For personal use only Installation complete and production underway on a 60 mmbo oilfield… Joint Venture: HZN 10% OMV 69% (Op) Todd 16% CUE 5% …with 40 mmbo upside potential Page 9
Slide 11: Maari Development – Features
Maari Development – Features For personal use only § Production permit through December 2027 with ability to extend § Design plateau production rate 35,000 bopd § Wellhead platform allows well intervention without need to import a rig § Workover rig and coiled tubing unit permanently on platform or
Slide 12: Maari Reserves and Upside Potential
Maari Reserves and Upside Potential For personal use only Zone Gross 2P reserves Net 2P reserves (mmbo) (mmbo) Maari Moki 60 6 Gross unrisked mean resource Net unrisked mean resource potential potential (mmbo) (mmbo) Maari M2A Sands 12 1 Manaia 25 3 Total 97 10 Page 11
Slide 13: Maari Field Operating Cashflow
Maari Field Operating Cashflow For personal use only § Plateau EBITDA net to HZN at US$50 oil: US$4.5 million per month at US$75 oil: US$7 million per month § Cumulative production after 2 years of 20 mmbo, generating EBITDA net to HZN at US$50 oil: US$81 million at US$75 oil: US$131 million § Cumul
Slide 14: Maari Update
Maari Update For personal use only § Development drilling program with Ensco 107 jack-up rig began 11 November 2008. Program is to batch drill 3 oil production wells, followed by 3 water injectors and 2 oil production wells § Wellhead platform and FPSO operational, connecting flow-lines and umbilica
Slide 15: China 22/12 – Discoveries and Prospects
China 22/12 – Discoveries and Prospects For personal use only 194 mmbbl oil-in-place discovered... Joint Venture: HZN 30% ROC 40% (Op) Petsec 25% FAR 5% …development planning underway Page 14
Slide 16: Block 22/12 Development Planning
Block 22/12 Development Planning For personal use only Phased development concept § Philosophy is to utilise CNOOC facilities and manpower where possible § Unmanned wellhead platform at Wei 6-12S location, tied back to CNOOC Wei 12-1 processing platform § Oil export via CNOOC pipeline to Weizhou Isl
Slide 17: Phased Development Concept
Phased Development Concept For personal use only Page 16
Slide 18: Papua New Guinea
Papua New Guinea Possible recoverable resources of 1-2 tcf gas and 40-70 mmb condensate… For personal use only …development options emerging Page 17
Slide 19: Western Province Play – Papua New Guinea
Western Province Play – Papua New Guinea For personal use only § Significant resource position:- - 100% interest in PRL 4 (Stanley gas / condensate discovery) - 49.65% interest in PRL 5 (Elevala and Ketu gas / condensate discoveries § Fields located in relatively flat and accessible foreland area §
Slide 20: Unrisked Valuation of Key Assets
Unrisked Valuation of Key Assets For personal use only Assumptions - effective date 1/1/09, US$50 / barrel oil price flat, certified 2P reserves / resources, independently sourced capex and opex profiles NPV10 (US$ million) Maari (Moki zone) 85 PNG (Stanley condensate) 88 China (Wei 6-12 and 12-8W)
Slide 21: Funding Position
Funding Position For personal use only Bank debt (BOS International) – : US$19.3 million corporate facility + US$46 million Maari project facility § Part rollover of corporate facility approved by local BOSI management, subject to credit approval, under which - US$9.6 million of the corporate facili
Slide 22: Investment Highlights
Investment Highlights For personal use only Reserves and Resources § Strong position-: 14 mmbo 2P reserves (all oil) and resources of 26 mmbo + 486 bcf gas New Zealand § Maari on production and ramping up to 3,500 bopd net to HZN; generates US$4.5 million per month net cash flow before interest and
Slide 23: Investment Risks
Investment Risks For personal use only § BOSI credit committee does not approve local management recommendation to part rollover US$19.3 million corporate facility repayable 30 June 2009; or § Company fails to sell 25 – 50% interest in PNG position; or § Expressions of interest for convertible note
Slide 24: Term Sheet
Term Sheet For personal use only § Offer Placement and Share Purchase Plan of ordinary HZN shares § Size Placement 170 million shares (50 million shares subject to shareholder approval) Non-underwritten Share Purchase Plan (estimated 50 million shares) § Price A$0.10 per share 23.1% discount to last
Slide 25: Horizon Oil website and contact details
Please visit the Horizon Oil website www.horizonoil.com.au to see:- Detailed Investor Presentation For personal use only Latest Quarterly Report Analyst reports on HZN Level 7, 134 William St, Woolloomooloo NSW 2011 Tel: +612 9332 5000 Fax: +612 9335 5050 exploration@horizonoil.com.au Page 24