Horizon Oil Limited · ASX:HZN
Horizon Oil — UBS Australian Resources & Energy Conference 2011
26 slides from Horizon Oil's conference presentation, Jun 16, 2011
Slide 1: Horizon Oil presentation at UBS Australian Resources & Energy Conference
For personal use only 16 June 2011 The Manager, Company Announcements Australian Securities Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) PRESENTATION AT UBS AUSTRALIAN RESOURCES & ENERGY CONFERENCE 15 – 16 JUNE 2011 Please find attached the presentation to be m
Slide 2: UBS Resources and Energy Conference
HORIZON OIL LIMITED ABN 51 009 799 455 For personal use only UBS Resources and Energy Conference 15 &16 June 2011 This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of the business and no assurance can
Slide 3: Horizon Oil in the Australian E&P Sector
Horizon Oil in the Australian E&P Sector For personal use only 2
Slide 4: Horizon Oil Profile
Horizon Oil Profile For personal use only § E&P petroleum company with geographic focus on SE Asia / Australasia § ASX listed – inclusion within ASX 300 Index § Market capitalisation of A$384m at A$0.34 per share on 14 June 2011 (1,130.8m shares) § Net production currently 1,500 bopd, generating EBI
Slide 5: Shareholder Distribution and Trading Statistics
Shareholder Distribution and Trading Statistics For personal use only SHARE PRICE HISTORY TRADING STATISTICS 4
Slide 6: Horizon Oil Board and Management
Horizon Oil Board and Management For personal use only NON-EXECUTIVE DIRECTORS RESPONSIBILITIES EXPERIENCE Fraser Ainsworth AM Chairman of Board, Chairman of 28 years in CSR’s resource & energy business, former MD of Delhi, former MD of SAGASCO, Founder & B.Comm, FAICD, FCPA Remuneration, Nomination
Slide 7: Investment Strategy
Investment Strategy For personal use only § Distinct southeast Asian geographic focus § Strong, long-lived cashflows from Maari field, offshore New Zealand, to fund future capital program § Substantial inventory of discovered reserves and resources to bring into production with minimal exposure to g
Slide 8: Asset Review
Asset Review Focus on productive fairways and mature operating environments in SE Asia / Australia … For personal use only …where there is strong demand for oil and gas 7
Slide 9: Net Reserves, Contingent Resources and Exploration Potential
Net Reserves, Contingent Resources and Exploration Potential as at 31 December 2010 – Post PRL 21 & Block 22/12 Acquisitions For personal use only RESERVES CONTINGENT EXPLORATION Proven + Probable RESOURCES POTENTIAL Proven + Probable Unrisked Mean 1 Reduced to allow for CNOOC participation at 51% 2
Slide 10: Net Production Forecast
Net Production Forecast For personal use only 9
Slide 11: Maari / Manaia Fields – New Zealand
Maari / Manaia Fields – New Zealand For personal use only On stream March 2009… Maari / Manaia: HZN 10% OMV 69% (Op) Todd 16% CUE 5% …robust, reliable development scheme with upside potential 10
Slide 12: Maari Development Concept
Maari Development Concept For personal use only • Production permit covering Maari and Manaia 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 perm
Slide 13: Maari Key Points
Maari Key Points For personal use only § Maari Moki zone developed with 5 producer wells and 3 water injectors – 60 mmbo recoverable reserves § Successful appraisal / development wells drilled from platform on secondary zones – M2A sands and Manaia Mangahewa formation, both wells equipped for produc
Slide 14: Maari Upside Potential
Maari Upside Potential For personal use only Potential to increase recoverable reserves from 60 mmbo to 80 – 100 mmbo 13
Slide 15: PEP 51313 – New Zealand
PEP 51313 – New Zealand For personal use only 2,595 sq km block with 5 year term, logical extension of Maari / Manaia… PEP 51313: HZN 30% Todd 50% (Op) CUE 20% …deep prospect and lead inventory in proven play-types 14
Slide 16: China 22/12 – Discoveries and Prospects
China 22/12 – Discoveries and Prospects 176 mmbo-in-place discovered... For personal use only Block 22/12 Post- CNOOC Back-in: HZN 26.95% CNOOC 51.00% (Op) ROC 19.60% Majuko Corp 2.45% …development underway, on stream late 2012 15
Slide 17: Block 22/12 Development Plan – Key Points
Block 22/12 Development Plan – Key Points For personal use only § Relatively uncomplicated development in 40 – 60 m water depth; reasonable metocean conditions § Operator CNOOC is experienced in the region and capable; project management team established and development work underway § Development s
Slide 18: Block 22/12 Phased Development Scheme
Block 22/12 Phased Development Scheme For personal use only 17
Slide 19: Block 22/12 recent acquisition overview
Block 22/12 recent acquisition overview For personal use only § Terms - Consideration of A$38m in cash and 15m options in Horizon Oil stock with an exercise price of A$0.37 and 3 year term - Conditions precedent satisfied and no pre-emptive rights exist; transaction endorsed by CNOOC and completed o
Slide 20: Papua New Guinea
Papua New Guinea Uptick in industry activity, with large projects gaining traction… For personal use only … major gas aggregation play emerging in Western Corridor / Offshore 19
Slide 21: PRL 4 and PRL 21 – Papua New Guinea
PRL 4 and PRL 21 – Papua New Guinea Possible recoverable resources of 1 – 2 tcf gas and 40 – 70 mmbo condensate… For personal use only PRL 4: HZN 50% (Op) Talisman 50% PRL 21: HZN 45% (Op) Talisman 35% Dabajodi 20% …condensate stripping phase planning underway 20
Slide 22: Western Province Play – Papua New Guinea
Western Province Play – Papua New Guinea For personal use only § Significant resource position, joint venture with partner Talisman Energy Inc. in:- − PRL 4 (Stanley gas / condensate discovery) – 50% − PRL 21 (Elevala and Ketu gas / condensate discoveries) – 45% § Fields located in relatively flat a
Slide 23: Analysts' Valuations
Analysts’ Valuations For personal use only Firm Date of Target share Recommendation research price UBS 3 Jun 11 $0.57 BUY Euroz 3 Jun 11 $0.37 HOLD Macquarie Equities 3 Jun 11 $0.58 BUY Merrill Lynch 2 Jun 11 $0.47 BUY Moelis & Co 6 Jun 11 $0.70 BUY Morgan Stanley 6 Jun 11 $0.45 BUY Patersons 3 May
Slide 24: HZN Share Price … Catalysts for Re-rating
HZN Share Price … Catalysts for Re- Re-rating For personal use only § Achievement of construction milestones on Block 22/12 development § Final Investment Decision on Stanley condensate stripping project § Progress on gas sales to regional PNG consumers § Progress by Talisman on Western Corridor gas
Slide 25: Coming up in 2011…Management Priorities
Coming up in 2011…Management Priorities For personal use only § Maari field, New Zealand − Optimise water injection and oil production − Design development scheme to produce Greater Maari Area accumulations § PEP 51313, New Zealand − Process recently-acquired seismic, integrate with existing and int
Slide 26: Please visit the Horizon Oil website
Please visit the Horizon Oil website www.horizonoil.com.au to see: see:-- Detailed Investor Presentation For personal use only Latest Quarterly Report Analyst reports on HZN The reserve and resource information contained in this announcement is based on information compiled by Alan Fernie (Manager –
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