Echelon Resources Limited · ASX:ECH
Echelon Resources — Merger or Acquisition (February 2024)
13 slides from Echelon Resources's merger presentation, Feb 14, 2024
Slide 1: Acquisition of 25% Non-Operated Interest in the Producing Mereenie Oil and Gas Field
Level 4, 360 Kent Street P +61 2 9332 5000 Sydney NSW 2000 F +61 2 9332 5050 Australia horizonoil.com.au 14 February 2024 ACQUISITION OF 25% NON-OPERATED INTEREST IN THE The Manager PRODUCING MEREENIE OIL AND GAS FIELD Company Announcements ASX Limited Exchange Centre 20 Bridge Street Following the
Slide 2: Acquisition of 25% Non-Operated Interest in the Producing Mereenie Oil and Gas Field, Northern Territory
ACQUISITION OF 25% NON-OPERATED INTEREST IN THE PRODUCING MEREENIE OIL AND GAS FIELD, NORTHERN TERRITORY, AUSTRALIA FEBRUARY 2024
Slide 3: Compliance Statement & Important Information
COMPLIANCE STATEMENT & IMPORTANT INFORMATION ► Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other tr
Slide 4: Investment Thesis
INVESTMENT THESIS ACQUISITION DELIVERS EXPOSURE TO ATTRACTIVE DOMESTIC GAS MARKETS AND ENHANCES HORIZON’S CAPITAL MANAGEMENT POTENTIAL ► Initial purchase price of US$27.6 million1 (A$42.5 million) funded from debt, with deferred and contingent milestone payments of up to US$5.8 million1 (A$9 million
Slide 5: Transaction Highlights
TRANSACTION HIGHLIGHTS MEREENIE IS A HIGH MARGIN AND LOW-COST CONVENTIONAL OIL & GAS PROJECT WHICH IS LINKED TO THE EAST COAST GAS MARKETS VIA THE NORTHEN GAS PIPELINE (NGP). THE PROJECT HAS A TRACK RECORD OF STABLE PRODUCTION AND CASH FLOWS CONVENTIONAL PRODUCING STRATEGIC ASSET POSITION IN HIGH QU
Slide 6: Mereenie Asset Background
MEREENIE ASSET BACKGROUND MATURE LOW RISK ASSET WITH STABLE PRODUCTION AND UPSIDE Mereenie drilling Mereenie anticline ► Discovered in 1963 and commenced production in 1984 ► Elongate four-way dip anticline, 40 km long and more than 5 km wide. Reservoirs - Pacoota Formation (which has been the devel
Slide 7: Mereenie Asset Background – Recent Developments
MEREENIE ASSET BACKGROUND – RECENT DEVELOPMENTS THE MEREENIE JV HAS OVERSEEN SIGNIFICANT OPERATIONAL IMPROVEMENTS OVER THE PAST 5 YEARS – INCLUDING THE OPENING AND CONNECTION TO THE NGP Central Opening of the 2021 Mereenie 2023 Mereenie Helium recovery Flare gas Processing NGP Development Developmen
Slide 8: Stable Production & Material Impact on the Portfolio
STABLE PRODUCTION & MATERIAL IMPACT ON THE PORTFOLIO MEREENIE - MATERIAL INCREASE IN GROUP RESOURCES AND PRODUCTION, OFFSETING DECLINE IN OTHER ASSETS GROUP PRODUCTION FORECAST TO 2030, BOEPD GROUP 2P DEVELOPED BUILD, MMBOE +129% 12 8,000 11.2 11 7,000 10 9 6,000 6.3 6.3 8 Mereenie 2P Developed 7 5,
Slide 9: Stable Production & Material Impact on the Portfolio
STABLE PRODUCTION & MATERIAL IMPACT ON THE PORTFOLIO MEREENIE - MATERIAL INCREASE IN GROUP RESOURCES AND PRODUCTION, OFFSETING DECLINE IN OTHER ASSETS GROUP PRODUCTION FORECAST TO 2030, BOEPD GROUP 2P DEVELOPED BUILD, MMBOE +129% 12 8,000 11.2 11 7,000 10 9 6,000 6.3 6.3 8 Mereenie 2P Developed 7 5,
Slide 10: Mereenie Running Room
MEREENIE RUNNING ROOM Gas development wells targeting Pacoota 1 and Pacoota 3 reservoirs Mereenie geological cross-section ► Two wells contemplated for 2024 targeting Pacoota 1 and Pacoota 3 sands, generally in an under-exploited crestal location, with upside potential of shallower sands considered
Slide 11: Why Australian Domestic Gas?
WHY AUSTRALIAN DOMESTIC GAS? Growing shift by Federal Government to Forecast supply shortfall in NT/East Coast Gas to continue to provide a critical part of become overtly supportive of the gas without new investment – current supply power generation well into the future industry, recognising the cr
Slide 12: Summary
SUMMARY HORIZON TO ACQUIRE A MATERIAL NON-OPERATED ASSET IN A LOW-RISK STRATEGIC DOMESTIC ONSHORE GAS ASSET, WITH A FUNDING STRUCTURE WHICH ALLOWS THE COMPANY TO CONTINUE ITS DISTRIBUTION STRATEGY ► Entry into a Tier 1 oil and gas jurisdiction with strong market demand ► Cash accretive producing ass
Slide 13: Contacts
CONTACTS RICHARD BEAMENT, CEO +61 2 9332 5000 info@horizonoil.com.au Horizon Oil Limited Level 4, 360 Kent Street Sydney NSW 2000 Australia horizonoil.com.au
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