Horizon Oil Limited · ASX:HZN
Horizon Oil — Euroz Securities Conference 2011
31 slides from Horizon Oil's conference presentation, Mar 8, 2011
Slide 1: ASX cover letter: Euroz Securities Conference presentation
For personal use only 8 March 2011 The Manager, Company Announcements Australian Securities Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) PRESENTATION AT EUROZ SECURITIES CONFERENCE 8 MARCH 2011 Please find attached the presentation to be made today by Horizon O
Slide 2: Euroz Securities Conference March 2011
HORIZON OIL LIMITED ABN 51 009 799 455 For personal use only Euroz Securities Conference March 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 be given by H
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 § Listed on ASX – in ASX 300 Index § Market capitalisation of A$407 million at A$0.36 share on 28 February 2011 – 1,130 million shares on issue § Forecast net production for 2011 2,000 -
Slide 5: Horizon Oil Shareholder Distribution
Horizon Oil Shareholder Distribution Institutional funds strongly represented on register… For personal use only SHARE PRICE HISTORY TRADING STATISTICS …possibility of being admitted to ASX 200 Index in 2011 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 Location – Focus on SE Asia / Australasia
Asset Location – Focus on SE Asia / Australasia For personal use only Productive fairways, mature operating environment … …strong demand for oil and gas 7
Slide 9: Net Reserves and Contingent Resources (Proven + Probable)
Net Reserves and Contingent Resources (Proven + Probable) as at 30 September 2010 For personal use only RESERVES CONTINGENT RESOURCES Total reserves and resources – 89.1 mmboe 8
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 § Nameplate capacity of facilities 35,000 bopd, forecast production rate for 2011 20,000 - 25,000 bopd § Production to date 12.8 mmbo, generating gross revenu
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 For personal use only 185 mmbo-in-place discovered... Block 22/12 Post-CNOOC Back-in: HZN 14.7% CNOOC 51% (Op) ROC 19.6% Petsec 12.3% Majuko Corp 2.4% …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 § Development scheme is to utilise CNOOC facilities, services, infrastructure and manpower where possible to achieve capex and opex sharing and accelerated timing to first oil § CNOOC to operate Block development and production § Phase
Slide 18: Block 22/12 Phased Development Scheme
Block 22/12 Phased Development Scheme For personal use only 17
Slide 19: Recent PNG Transactions…heavy artillery arriving
Recent PNG Transactions…heavy artillery arriving Date Company Transactions For personal use only On-going Exxon Development of the Exxon-operated PNG LNG Project On-going InterOil Appraisal / development of Elk / Antelope LNG Project – to be front-ended with condensate stripping phase Sep’08 Sasol P
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 5 – Papua New Guinea
PRL 4 and PRL 5 – Papua New Guinea Possible recoverable resources of 1 – 2 tcf gas and 40 – 70 mmbo condensate… For personal use only …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, 50% interest with partner Talisman Energy Inc. in:- − PRL 4 (Stanley gas / condensate discovery) − PRL 5 (Elevala and Ketu gas / condensate discoveries) § Fields located in relatively flat and accessible
Slide 23: Stanley-2 Well Update
Stanley--2 Well Update Stanley For personal use only Results - Primary Toro target 130 m high to equivalent zone in Stanley-2, with similar thickness – 35 m gross / 23 m net gas pay - Imburu (secondary) target encountered below Toro – 56 m gross / 43 m net gas pay - Pay zones in pressure communicati
Slide 24: Analysts’ Valuations
Analysts’ Valuations For personal use only Firm Date of research Target share price Recommendation Euroz 16 Feb 11 $0.48 BUY Patersons 25 Feb11 $0.44 BUY Wilson HTM 25 Feb 11 $0.41 BUY Merrill Lynch 24 Feb 11 $0.44 BUY UBS 24 Feb 11 $0.47 BUY Moelis & Co 16 Nov 10 $0.52 BUY Macquarie Equities 11 Nov
Slide 25: HZN Share Price … Catalysts for Re-rating
HZN Share Price … Catalysts for Re- Re-rating For personal use only § Achievement of construction milestones on Block 22/12 development § Renewal of PRL 5 § Stanley reserves upgrade and FID on condensate stripping project § Progress on gas sales to regional PNG consumers § Progress by Talisman on We
Slide 26: Coming up in 2011…Management Priorities
Coming up in 2011…Management Priorities For personal use only § Maari field, New Zealand – − Optimise water injection and oil production − Design development scheme to produce Greater Maari Area accumulations § PEP 51313, New Zealand − Process recently-acquired seismic, integrate with existing and i
Slide 27: HY 2011 Financial Results – February 2011
HY 2011 Financial Results – 24 February 2011 For personal use only § Key Results § Profit and Loss § Cash Flow 26
Slide 28: Key Results
Key Results For personal use only Operational § Stanley-2 appraisal well in PRL 4, Papua New Guinea drilled with favourable preliminary results. Multi-well drilling program planned to continue throughout the remainder of the year. § Overall Development Plan for WZ6-12 and WZ12-8W fields, Beibu Gulf
Slide 29: Profit and Loss
Profit and Loss For personal use only 6 Months to 6 Months to Dec 2010 Dec 2009 (US$million) (US$million) Sales Revenue 24.8 24.4 Gross Profit on Oil Sales 15.5 17.1 Impairment of exploration phase expenditure (PRL 5) (7.3) - Profit from Sale of Assets - 54.1 EBITDAX 18.0 22.0 EBIT 5.3 68.9 Profit b
Slide 30: Cash Flow
Cash Flow For personal use only 6 Months to 6 Months to Dec 2010 Dec 2009 (US$million) (US$million) Opening Cash 26.5 10.0 Net Cash from Operating Activities (excl G&A) 19.4 20.0 General & Administrative Expenditure (3.5) (2.5) Repayment of Bank Loans (7.3) (14.6) Repayment of Finance Lease on FPSO
Slide 31: 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 Level 7, 134 William St, Woolloomooloo NSW 2011 The reserve and resource information contained in this Tel: +612 9332 5000 ann