Horizon Oil Limited · ASX:HZN
Horizon Oil — Euroz Securities Limited Rottnest Island Conference 2009
23 slides from Horizon Oil's conference presentation, Mar 12, 2009
Slide 1: Horizon Oil presentation at Euroz Securities Conference
For personal use only 12 March 2009 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) PRESENTATION AT EUROZ SECURITIES LIMITED CONFERENCE 11 – 12 MARCH 2009 Please find attached the presentation to be made today by
Slide 2: Investor Presentation – Euroz Rottnest Island Conference
HORIZON OIL LIMITED ABN 51 009 799 455 For personal use only Investor Presentation Euroz Securities Limited Rottnest Island Conference March 2009 This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of t
Slide 3: Strategy
Strategy For personal use only Geographic focus on southeast Asia Emphasis on bringing existing discovered reserves and resources into production – minimal exposure to geological risk Modest and highly selective exploration program Strong, long-term cashflows from Maari field, offshore New Zealand,
Slide 4: 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 3
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 Price 25,000,000 $0.30 This month 20,000,000 Last $0.110 $0.20 15,000,000 High $0.155 Low $0.105 10,000,000 $0.10 Volume 19,036,630 5,00
Slide 6: 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 7: Net Production Forecast
Net Production Forecast 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 8: Maari Development – New Zealand
Maari Development – New Zealand For personal use only Installation complete and production start-up of a 60 mmbo oilfield… Joint Venture: HZN 10% OMV 69% (Op) Todd 16% CUE 5% …with 40 mmbo upside potential Page 7
Slide 9: 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 at shore
Slide 10: 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 9
Slide 11: 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 Cumulative
Slide 12: 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 umbilicals i
Slide 13: 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 12
Slide 14: 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 Island st
Slide 15: Phased Development Concept
Phased Development Concept For personal use only Page 14
Slide 16: Papua New Guinea
Papua New Guinea For personal use only Possible recoverable resources of 1-2 tcf gas and 40-70 mmb condensate… …development options emerging Page 15
Slide 17: 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 Initia
Slide 18: Valuation of Key Assets
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) 41 Total
Slide 19: Funding Position
Funding Position For personal use only Near term funding requirements US$10 million related to: - Maari development costs March 2009 to June 2009 until self funding –US$7 million - Pre-development expenditure – Block 22/12 and Stanley – US$2.3 million US$19.25 million BOSI corporate facility repayab
Slide 20: 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 tax
Slide 21: 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 20
Slide 22: Top Shareholders
Top 20 Shareholders For personal use only Source: RADAR investor Relations Page 21
Slide 23: Oil Supply Costs
Oil Supply Costs For personal use only Page 22
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