Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (2021)
23 slides from Horizon Oil's shareholder meeting presentation, 2021
Slide 1: 2021 AGM Presentation
2021 AGM PRESENTATION INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION
Slide 2: Compliance Statement
COMPLIANCE STATEMENT Disclaimer Reserves Disclosure • Statements contained in this material, particularly those regarding the possible or assumed • Unless otherwise stated, all petroleum reserves and resource estimates refer to future performance, costs, dividends, returns, production levels or rate
Slide 3: Our Strategy
OUR STRATEGY Further Distributions to Maximise Free Invest in New Business Shareholders Cashflow if exceptional when prudent to do so INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 3
Slide 4: Financial and Commercial Highlights – FY21
FINANCIAL AND COMMERCIAL HIGHLIGHTS – FY21 Production and financial metrics were within or exceeded FY21 guidance range (USD unless specified) Much improved oil price Corporate costs reduced Production 1.33 MMbbls $63.6 million revenue EBITDAX $36.4 million Sales 1.27 MMbbls $20 million free cashflo
Slide 5: Operations
OPERATIONS The priority has been to increase production, reduce costs and maximise returns from the producing assets No loss of containment, strong 10 workovers restored production WZ12-8E project sanctioned at safety record across both assets time of low oil price Greenhouse Gas reductions Maintena
Slide 6: Sustainability (Our ESG Priority Areas)
SUSTAINABILITY (OUR ESG PRIORITY AREAS) Right sized for Horizon, and meaningful to our stakeholders and the wider community HSE Governance People – employees Climate Change and communities • Work closely with • Zero tolerance policy on • We support our team to • Our priority is to Operators - target
Slide 7: Share Price Performance – July 2020 to Present
SHARE PRICE PERFORMANCE – JULY 2020 TO PRESENT $0.16 45.00 Capital return HZN vs Brent Oil vs Energy Index of 3cps $0.14 40.00 35.00 $0.12 30.00 $0.10 25.00 $0.08 20.00 $0.06 15.00 $0.04 10.00 $0.02 5.00 $0.00 - Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-
Slide 8: The Producing Assets
THE PRODUCING ASSETS China, Beibu Gulf, 26.95% production / 55% exploration • CNOOC (51% - Operator) • Roc Oil (19.6%) • Majuko Corp. (2.45%) New Zealand, Maari, 26% • OMV (69% - Operator)* • Cue Energy (5%) * Sale to Jadestone Energy pending NZ Regulatory approvals INVESTOR PRESENTATION ANNUAL GENE
Slide 9: China Block 22/12: Reliable, High Margin Production
CHINA BLOCK 22/12: RELIABLE, HIGH MARGIN PRODUCTION • Production is currently ~9,900 bopd (gross) from 19 wells across 5 discrete fields • Production rates are maintained through a combination of near-field drilling, increased water handling and production optimisation via well workovers and continu
Slide 10: China Overview
2021 HALF YEAR RESULTS 24 AUGUST 2021 CHINA OVERVIEW Export to Weizhou WZ 6-12 North Terminal WZ 6-12 Mid WZ 6-12 South WZ 6-12 Sliver CNOOC facilities WZ 12-8 East WZ 12-8 West WZ 12-8 Mid INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 10
Slide 11: Planned WZ6-12 Sliver Infill Well
PLANNED WZ6-12 SLIVER INFILL WELL* • The Sliver infill well is proposed for 2022* and is estimated to recover ~0.5mmbbl gross (risked) WZ6-12 The A7 and A6 wells produce Platform • Planned to intersect a mix of discovered (Contingent from only some of the 10 Resources) and undiscovered (Prospective
Slide 12: China: Appraisal & Exploration Opportunities
CHINA: APPRAISAL & EXPLORATION OPPORTUNITIES • The JV has a strong portfolio of infill, appraisal and near- M3 field exploration opportunities, four of which are proposed for Sliver drilling in 2022* • Success in these opportunities will help to extend plateau production into the longer term A7 Weiz
Slide 13: China: WZ12-8E Development Project – Summary
CHINA: WZ12-8E DEVELOPMENT PROJECT – SUMMARY • Construction well advanced • Horizon’s share of total capital expenditure ~US$20 million at current oil prices • Development costs are phased through 2021 and 2022 and are to be funded from WZ12-8E WHP Horizon’s existing cash reserves and field producti
Slide 14: China: WZ12-8E Development Project - Status
CHINA: WZ12-8E DEVELOPMENT PROJECT - STATUS Self-installing WZ12- 8E platform during construction INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 14
Slide 15: China: History and Indicative Forecast
CHINA: HISTORY AND INDICATIVE FORECAST 20,000 History Forecast WZ12-8E 2P undeveloped reserves: 2.3 MMbbl ODP* forecast 15,000 recovery 16.2 MMbbl Gross oil rate (bopd) Indicative future activities est. net Capex $5-10 p.a. 10,000 2P developed reserves at 30-June-2021: 11.4 MMbbl end of PSC 5,000 Cu
Slide 16: New Zealand: Stable Reservoir Performance
NEW ZEALAND: STABLE RESERVOIR PERFORMANCE • Production decline rate arrested through continued water injection and well optimisation • Workovers of MR7 and MR9 in Q4 CY2020 successfully restored production, workover of MR8A recently completed and cleaning up • MR6A workover completed however current
Slide 17: Maari / Manaia Summary Map and Cross-Section
MAARI / MANAIA SUMMARY MAP AND CROSS-SECTION • Maari Moki • Maari Mangahewa • Maari M2A Wellhead platform & FPSO • Manaia Mangahewa INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 17
Slide 18: Maari - The Way Forward
MAARI - THE WAY FORWARD OMV sale to Jadestone delayed – but in the meantime, OMV continues to operate the field effectively Opportunities Jadestone Field Life Extension Decommissioning • “There are significant • Sale announcement • Work streams initiated • NZ Government propose near-term production-
Slide 19: Maari History and Indicative Forecast
MAARI HISTORY AND INDICATIVE FORECAST 30,000 History Forecast Note that all data on this slide (production and recovery) is gross 25,000 20,000 Oil Rate (bopd) Indicative future Indicative future activities activities in the current beyond the current licence 15,000 licence period* period* 2P develo
Slide 20: 2022 Operations Activity
2022 OPERATIONS ACTIVITY* 2022 Estimated net cost Q1 Q2 Q3 Q4 range (US$M) CHINA WZ12-8 EAST DRILLING (x8) FIRST OIL 12-15 CHINA WZ12-8 SE NEAR-FIELD 2-3 EXPLORATION (x1)* CHINA WZ6-12 WORKOVERS (x3)* 1-2 CHINA WZ6-12 INFILL AND OTHER 3-4 NEAR-FIELD DRILLING (x2)* MAARI LIFE EXTENSION AND No signifi
Slide 21: 2022 Summary Activity Outlook
2022 SUMMARY ACTIVITY OUTLOOK Capitalising on higher oil prices to maximise value China: Delivery of WZ12-8E New Zealand: work with OMV, Maintain ESG commitments, project, safe and successful Jadestone and NZ Gov’t to plan costs, shareholder value drilling operations for the future • The first 6 mon
Slide 22: Our Strategy
OUR STRATEGY Maximise Free Cashflow* Further Distributions to Invest in New Business Targeting US$25-35 million FY22 Shareholders if exceptional when prudent to do so • WZ12-8E commencement, infill • A$49.4 million already distributed • Strong investment metrics, low wells, production efficiencies,
Slide 23: For More Information Please Contact Us
FOR MORE INFORMATION PLEASE CONTACT US CHRIS HODGE Horizon Oil Limited P +61 2 9332 5000 Level 6, 134 William Street info@horizonoil.com.au Woolloomooloo NSW 2011 Australia horizonoil.com.au INVESTOR PRESENTATION