Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q1 FY2016-17 Earnings Presentation
35 slides from Hindustan Oil Exploration's earnings presentation, Jul 25, 2016
Slide 1: Investor Presentation, 25 July 2016
INVESTOR PRESENTATION, 25 JULY 2016 * Page 11, update on 2 September 2016
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall n
Slide 3: Contents
Contents 1 Q1 FY 16-17 Highlights 2 Company Overview 3 Asset Portfolio 4 Growth Strategy HINDUSTAN OIL EXPLORATION COMPANY LIMITED|3
Slide 4: Q1 FY 16-17 Highlights
Q1 FY 16-17 HIGHLIGHTS
Slide 5: Statement of Profit & Loss
Statement of Profit & Loss Q1 FY 16-17 Q1 FY 15-16 FY 2016 Particulars ₹ millions ₹ millions ₹ millions INCOME Revenue from operations 60 107 283 Other income 35 18 88 Total revenue 95 125 372 EXPENSES Operating expenses 27 36 125 Decrease in stock of crude oil (6) 14 22 Employee benefits expense 3
Slide 6: Balance Sheet
Balance Sheet As at As at EQUITY AND As at As at ASSETS June 30, March 31, LIABILITIES June 30, March 31, 2016 2016 2016 2016 ₹ Millions ₹ Millions ₹ Millions ₹ Millions Non-current assets Shareholders’ funds Property, Plant and Equipment 655 677 Share capital 1,305 1,305 Development work in progres
Slide 7: Q1 FY 2016-17 Highlights
Q1 FY 2016-17 Highlights Mr. P. K. Borthakur former Director (offshore) ONGC joined the Board of HOEC as a Non Executive Independent Director. Consent to Operate existing three wells obtained from State Pollution Control Board. Completion and Testing operations completed at Dirok – 1 Well. G
Slide 8: Company Overview
COMPANY OVERVIEW Sb ES a Sev ae eh
Slide 9: Company Overview
Company Overview 1st Private Oil & Gas company in India 3 Decades of presence in Oil & Gas Business 7 Blocks (Production/Development stage) across India $500+ Million of Investments 85,000+ Shareholders Promoted by Late Shri H.T. Parekh HINDUSTAN OIL EXPLORATION COMPANY LIMITED|9
Slide 10: Over 25 Years in BSE Listing
Over 25 Years in BSE Listing Signed PSC for PY3, PY1 and PY3 was shut- Asjol block ENI becomes in the promoter consequent to Change in Share Commencement public offer, Reserves holding pattern, of Production holds 47.18% downgraded in with ENI sale of from PY3 block PY1 30.89 % shares 1983-90 1994-9
Slide 11: Shareholding Pattern & Board Members (Non-Executive Directors)
HOEC Shareholding Pattern & Board Members (Non-Executive Directors) Shareholding Pattern (more than 10 %) AKG 14.15% HDFC 11.36% 74.4900% Retail/Others (85,000+) 0% 20% 40% 60% 80% % Holding AKG – Ashok Kumar Goel Board of Directors (Non-Executive) Sunil Behari Mathur Sharmila Amin Mr. P.K. Borthaku
Slide 12: Board Members (Executive Directors)
Board Members (Executive Directors) P ELANGO Managing Director • Over 28 years of experience in Upstream Oil & Gas Sector • Held several leadership roles in different areas of the business and is a recognized leader in the Indian industry • Earlier CEO of Cairn India, played a key role in building C
Slide 13: Technical Experts
Technical Experts Bhuwan Chandra Gariya EXPLORATION MANAGER • Over 31 years of experience as a Petroleum Geoscientist in exploration, appraisal, reservoir, development, including seismic data acquisition processing and interpretation • Earlier Chief geophysicist at ONGC worked for 24 years • Experti
Slide 14: Technical Experts
Technical Experts Doppalapudi Surendra Mohan SENIOR TECHNICAL ADVISOR • Thirty two years of experience in Exploration and Development domains in national oil company, private major oil company, multinational companies and joint ventures. • Diverse working experience with national, global multination
Slide 15: Project Management Team
Project Management Team P R Krishna Asset Manager (Assam) & Head – Contracts & Procurement • 25 years of Procurement and Supply Chain Management experience in on shore and offshore oil and gas fields encompassing exploration, development and production phases. Demonstrable experience in fast track e
Slide 16: Asset Portfolio
ASSET PORTFOLIO ASSET PORTFOLIO
Slide 17: Asset Map (Production/Development)
Asset Map (Production/Development) AAP-ON-94/1 North Balol Asjol ASSAM-ARAKAN CB-OS/1 CB-ON-7 CB-OS/1 CAMBAY PY-1 PY-3 CAUVERY HINDUSTAN OIL EXPLORATION COMPANY LIMITED|17
Slide 18: Asset Portfolio (Production/Development)
Asset Portfolio (Production/Development) Block Name Operator Location Oil/Gas PI Partner(s) PY-1 HOEC Offshore Gas 100% Nil CB-ON-7 HOEC Onshore Oil 35% North Balol HOEC Onshore Gas 25% Asjol HOEC Onshore Oil 50% AAP-ON-94/1 HOEC Onshore Gas 27% CB-OS/1 ONGC Offshore Oil 38% PY-3 HEPI Offshore Oil 2
Slide 19: Assam – AAP-ON-94/1 (Operator: HOEC, 27% PI)
Assam – AAP-ON-94/1 (Operator : HOEC, 27% PI) • ~$100 million of Exploration & PROSPECT MAP Appraisal investment by JV Investment • 3 Exploration, 2 Appraisal wells drilled • Multiple Girujan Sands (18+) Reservoir • 6 Sands tested with gas flow • Opening 2 new gas sands • Plan of Development was POD
Slide 20: Assam to come on stream by Q4 FY 2016-17
Assam to come on stream by Q4 FY 2016-17 DEVELOPMENT ACTIVITIES • Public Hearing for EC • Consent to Operate Wells Obtained from Completed 3 July 15 State Pollution Control Board Complete Three • All Tenders Floated • Dirok -1 Well Completed and Tested Existing Wells • ROU for Pipeline • Re entry& C
Slide 21: Development Cost Optimized Through Innovation
Development Cost Optimized Through Innovation Logbaba EPF- Camerroon Built by Expro • Early Monetisation • Adoption of Modular Gas • M-GPP contract on build, through a 4” parallel Processing ( M-GPP) on Opex maintenance and pipeline to connect to Model results in operate (BMO) model OIL India Gas Pr
Slide 22: Assam: Easy Access to Market
Assam : Easy Access to Market Gas to BCPL Through Existing Pipeline BHORPOWAI • Existing infrastructure provides ready access to gas market. • Discussion on Gas Sales Agreement with Oil India Limited is in progress. • Government notified prices to be applicable. • Due to low cost, the project stays
Slide 23: Assam – Summary
Assam – Summary Past Cost carry of • HOEC entitled to higher share of revenue, PI in exploration being 40% ~$100 Million • Modular Gas Processing Plant awarded to EXPRO UK, on Build, Operate Development Cost and Maintenance (BOM) Model, reduces capital cost & lead time. Optimized Through • Secured O
Slide 24: PY-1 (Operator: HOEC, 100% HOEC PI)
PY-1 (Operator : HOEC, 100% HOEC PI) First Gas • November 2009 Decline in production due to water cut • Over $400mn of Investment • 4 Development wells and an Cumulative Offshore Platform & Pipeline Investment • 55 mmscfd processing plant on 209 acres land • Avg. Prod. Q1 FY 16-17 : 1.6 mmscfd Produ
Slide 25: PY-1: Technical Work Plan FY 16-17
PY - 1 : Technical Work Plan FY 16-17 Technical Advisory Committee of Experts Constituted Focus Areas • Reprocess 3D with “Controlled Beam. Migration” • Identify type of fractures, flow of HC & water, to ascertain their production potential. • Re-evaluate reserves • Relook into the resources of undr
Slide 26: PY-1 – Undeveloped Resources to be accessed
PY-1 – Undeveloped Resources to be accessed Planned Activities: • Study on Exploring synergies with adjoining fields/block to optimize the operating cost for all stakeholders completed. • Proposal Submitted by HOEC • Results of coil tubing encourages to revisit the reserve estimation and subsequent
Slide 27: PY-3 (Operator: Hardy, 21% HOEC PI)
PY-3 (Operator : Hardy, 21% HOEC PI) • July 1997, with FPS & PY-1 BLOCK First Oil SUN subsea completion PLATFORM PY-3 • Field shut-down since July BLOCK 2011 • Last Production : 3,300 TIE POINT Current bbls/day Status • Opportunity to develop TAHARA field with optimized cost •Proposal submitted by H
Slide 28: Cambay Marginal Fields (Operator: HOEC)
Cambay Marginal Fields (Operator : HOEC) •Wells : 9 wells (2 Producing) North Balol CAMBAY BASIN North Balol •Reservoir : Balol, Babaguru & Kand Sands (HOEC PI : 25%) Asjol •Avg Prod. Q1 FY 16-17 (100%): 0.4 mmscfd •Q1 FY 16-17 Net Revenue : INR 2.1 mn Cost Recovery CB-ON-7 •Q1 FY 16-17 Opex : INR 1
Slide 29: CB-ON-7 R2 Area
CB-ON-7 R2 Area Snapshot: • Government has decided to grant 97.15 Sq. km of ring-fenced R2 area to JV of HOEC and GSPC through New PSC • Recent discovery by private operator in June 2015 on the June 2015 surrendered area of the Block enhances prospectivity of the Block • Proposed PSC envisages minim
Slide 30: Leverage Expertise in Marginal Fields
Leverage Expertise in Marginal Fields Marginal Fields’ Contribution Future Opportunity Netback ($/boe) Block Particulars 16 • Acquire 3D Seismic Asjol 10 • Drill 2 Wells 8 • Work-over 1 well • Acquire 3D Seismic CB-ON-7 • Drill 2 Wells North Balol Asjol CB-ON-7 • Gas Monetization Considerable netb
Slide 31: Growth Strategy
GROWTH STRATEGY
Slide 32: Growth Strategy
Growth Strategy... Focus Deliver from low risk onshore assets in Assam and Low risk Gujarat to double the current revenue by Q4 FY 2016- onshore 17 Build Talent Build a strong geo-technical team & Deploy Technology • Revive offshore assets (when the price cycle turns) and access undeveloped resource
Slide 33: Execution plan linked to our strategy
...execution plan linked to our strategy • Fast-tracked Assam Project to deliver first-gas by Q4 FY 16-17 • Initiated process to leverage opportunities in DSF 2016 Onshore Assets • Technical Talent strengthened Team • Technical Advisory Committee (TAC) of Seven experts constituted • Monthly Technica
Slide 34: Glossary
Glossary 2P - Proved + Probable reserves BCF - Billion Cubic Feet of Gas GGS - Gas Gathering Station GPP - Gas Processing Plant Kbbls - Thousand Barrels of Oil MMbbls - Million Barrels of Oil PI - Participating Interest PSC - Production Sharing Contract WIP - Work-in-Progress EC - Environmental Clea
Slide 35: Contact Information
Contact Information For further information, please contact: Company : Investor Relations Advisors : HOEC Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L11100GJ1996PLC029880 CIN: U74900MH2014PTC259212 Kamalakannan Premnatha Gaurang Vasani/ Pooja Dokania kpremnatha@hoec.com vgaurang@stellar-ir.com/ dpooja@
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