Horizon Oil Limited · ASX:HZN
Horizon Oil — Good Oil Conference 2015
27 slides from Horizon Oil's conference presentation, Sep 3, 2015
Slide 1: Good Oil Conference Presentation (ASX cover letter)
Horizon Oil Limited ABN 51 009 799 455 Level 6, 134 William Street, Woolloomooloo NSW Australia 2011 Tel +61 2 9332 5000, Fax +61 2 9332 5050 www.horizonoil.com.au 3 September 2015 For personal use only The Manager, Company Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 H
Slide 2: Horizon Oil Limited – Good Oil Conference
For personal use only HORIZON OIL LIMITED ABN 51009799455 Good Oil Conference 3 September 2015 Brent Emmett CEO 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 b
Slide 3: Presentation outline
Presentation outline For personal use only Company overview − Asset locations − Company snapshot − Reserves and production forecast − China – Papua New Guinea – New Zealand Horizon Oil as an investment proposition − Global oil supply/demand outlook − Response to low oil prices − Highlights for F
Slide 4: 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 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 Aug 2015 (to date) Last $0.080 High $0.094 Low $0.065 Volume 39,879,463 12 Months Last $0.080 High $0.340 Low $0.060 Volume 799.78m Fully paid shares 1,302m 1 Partly paid shares 1.50m 2 Employee options 11.44m General options 3.5m
Slide 7: Net Reserves, Contingent Resources and Prospective Resources
Net Reserves1, Contingent Resources1 and Prospective Resources1 as at 30 June 2015 For personal use only RESERVES CONTINGENT RESOURCES PROSPECTIVE RESOURCES Proven + Probable Proven + Probable Best Estimate Total: 13.7 mmboe Total: 87.1 mmboe Total: 78 mmboe including 400 bcf Including 286 bcf Lon
Slide 8: Forecast net production from Reserves + Contingent Resources
Forecast net production from Reserves + Contingent Resources as at 1 July 2015 For personal use only Assumptions Development of WZ 12-8E field with production commencing 2017 Development of 12-10-1 and -2 fields in Beibu Gulf in 2018 Stanley condensate start-up with gas sales to OTML commencin
Slide 9: 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 10: 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 3 September 2015 9
Slide 11: Horizon Oil's share of Block 22/12 gross revenue
Horizon Oil’s share of Block 22/12 gross revenue – calculated on 2P Reserves For personal use only HZN DECK: 2015: US$60/bbl 2016: US$65/bbl 2017: US$75/bbl 2018+: US$80/bbl The above graph demonstrates Horizon Oil’s increased share of cost recovery in the period Oct 2015 to Aug 2018, once CNOOC h
Slide 12: 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 13: 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 Developm
Slide 14: 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 15: 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 16: 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 underw
Slide 17: Presentation outline
Presentation outline For personal use only Company overview − Asset locations − Company snapshot − Reserves and production forecast − China – Papua New Guinea – New Zealand Horizon Oil as an investment proposition – how to play the recovery in oil price? − Global oil supply/demand outlook − Resp
Slide 18: WoodMackenzie macro oil short-term outlook (1)
WoodMackenzie macro oil short-term outlook (Aug 2015) (1) For personal use only 3 September 2015 17
Slide 19: WoodMackenzie macro oil short-term outlook (2)
WoodMackenzie macro oil short-term outlook (Aug 2015) (2) For personal use only 3 September 2015 18
Slide 20: Barclays global oil supply/demand outlook
Barclays global oil supply/demand outlook (Sep 2015) For personal use only 3 September 2015 19
Slide 21: 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 Opex reduced (down ~20% YTD in Block 22/12) Capex for 2015-2016 materially reduced and discretionary expenditure minimised Estimate
Slide 22: 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 as critically impacted by low oil prices Pro
Slide 23: Highlights for financial year ending June 2015
Highlights for financial year ending June 2015 For personal use only 70%
Slide 24: Key performance measures – last five financial years
Key performance measures – last five financial years For personal use only Completion of Maari Growth Project in July 2015 expected to increase The outlook for 2016 in the current oil price environment remains production in 2016 positive due to the benefit of oil price hedging Average cash cost of U
Slide 25: Balanced portfolio – focus on resource development
Balanced portfolio – focus on resource development For personal use only Large audited reserves and contingent resources 11% developed / 89% undeveloped – 34% oil / 66% gas 11 mmboe 24 mmboe 67 mmboe 2P + 2C reserves and contingent resources of 101 mmboe 3 September 2015 24
Slide 26: 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 27: For personal use only
For personal use only 3 September 2015 26