Horizon Oil Limited · ASX:HZN
Horizon Oil — Investor Presentation (October 2006)
33 slides from Horizon Oil's investor presentation, Oct 6, 2006
Slide 1: Investor Presentation - Update (ASX cover letter)
6 October 2006 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sir, INVESTOR PRESENTATION - UPDATE Please find attached a copy of a presentation providing investors and analysts with an update on Horizon Oil Limited’s activit
Slide 2: Horizon Oil Limited Investor Update October 2006
ABN 51 009 799 455 HORIZON OIL LIMITED Investor Update October 2006 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 Horizon Oil Limited that its expe
Slide 3: Location Of Assets
Location Of Assets Investor Presentation October 2006
Slide 4: Horizon Oil Statistics
Horizon Oil Statistics This Month Last $0.290 High $0.345 Low $0.275 Volume 5,634,078 12 Months Last $0.290 High $0.475 Low $0.13 Volume 234.5 million Total Number of Shares 656.6 million Free Float 656.6 million No. Shareholders 3,788 Market Capitalisation $190.4 million Top 20 / Issued Capital 64.
Slide 5: The Horizon Oil Team
The Horizon Oil Team NON-EXECUTIVE RESPONSIBILITIES EXPERIENCE DIRECTORS Fraser Ainsworth AM Chairman, Member of Audit, 27 years in CSR’s resource & energy business, former MD of Delhi, former MD of B.COMM, FAICD, Remuneration and Risk Management SAGASCO, Founder & Executive Director of Potential En
Slide 6: Objective and Progress
Objective and Progress Objective To build a specialist Asian E&P company of +/- US$500 million value, that will be highly valued by the market and potential acquirors Progress to date Maari field development underway– first production Q1 2008 Wei 6-12S discovery to serve as development hub for Block
Slide 7: Investment Proposition
Investment Proposition Discovered reserves underwrite current share price Unrisked value of discovered reserves 63 – 66 cps vs. current share price 29 cps Increase in share price expected as Maari development progresses AWE up 275% on Yolla and Cliff Head and Beach up 200% on BMG Further significant
Slide 8: Market Valuation
Market Valuation Reserves valuation @ A$20/2P barrel (comparables:- BPT, COE, MOS etc):- Stage Asset HZN market value (cps) Cash (A$4 million) 1 Development Maari 2P 17 Development Bayou Choctaw 8 Pre-development Block 22/12 discovered fields 24 - 27 Appraisal Maari other zones 5 Appraisal Block 22/
Slide 9: Re-rating as Development Progresses - Examples
Re-rating as Development Progresses - Examples Govt approval First gas granted for - Yolla Yolla Tui FID FID + Finance secured (Yolla) Cliff Head and Cliff Head FID discovery First production Cliff Head Tui Discovery First oil - BMG Acquisition of 25% BMG Investor Presentation October 2006
Slide 10: Reserves and Resources (1)
Reserves and Resources (1) Asset Location Gross 2P Reserves Horizon Oil Net 2P Reserves (mmbo) 1 Interest (mmbo) 1 % Development Maari field Offshore New (Moki formation) Zealand 50 - 56 10 5-6 Onshore Louisiana, Bayou Choctaw field USA 6 - 10 14 - 28.5 1-2 Pre-development Block 22/12 discovered fie
Slide 11: Reserves and Resources (2)
Reserves and Resources (2) Asset Location Gross Unrisked Mean Horizon Oil Net Unrisked Mean Resources Potential Interest Resources Potential (mmbo)1 % (mmbo)1 Appraisal Maari (other zones and Manaia Offshore New 10 - 20 10 1-2 prospect) Zealand Block 22/12 (Wei 12-2 discovery) Offshore China 8 30 /
Slide 12: Net Production Forecast
Net Production Forecast Maari and Wei 6-12S on production in 2008… 12000 10000 8000 Bopd 6000 4000 2000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 1 Bayou Choctaw Maari Maari Other Zones 22/12 Wei 6-12S 1 1 2 22/12 Wei 12-8W 22/12 Other Discoveries New Business …generating A$200 mill
Slide 13: Maari Development – New Zealand
Maari Development – New Zealand Development 20% complete on a 50+ mmbo oilfield… …with 10 – 20 mmbo upside potential Investor Presentation October 2006
Slide 14: Maari Development Scheme
Maari Development Scheme Investor Presentation October 2006
Slide 15: Maari Development Progress
Maari Development Progress Overall development concept confirmed – 5 production / 3 injection horizontal wells with wellhead platform / FPSO production facilities Capex budget set at US$365 million (including contingency) US$40 million finance facility provided to HZN by BOS International 22 year pr
Slide 16: China 22/12 – Discoveries & Prospects
China 22/12 – Discoveries & Prospects 60+ mmbo recoverable reserves discovered... …with +/- 100 mmbo recoverable exploration potential Investor Presentation October 2006
Slide 17: Block 22/12 Development Planning
Block 22/12 Development Planning Stand-alone development concept Processing / production platform with 20,000 – 25,000 bopd capacity and floating storage at Wei 6-12S location Unmanned minimal structures for Wei 6-12 and other nearby fields, tied back to Wei 6-12S hub facility Dehydration platform a
Slide 18: Wei 6-12 South Discovery
Wei 6-12 South Discovery 6-12 SOUTH PRO SPECT 6-12 South Prospect P50 resource Prospect mmbo South 20 Upthrown 8 Km Investor Presentation October 2006
Slide 19: Wei 6-12S Results
Wei 6-12S Results Initial wireline log analysis indicates potentially significant oil discovery Gross pay interval of 500 m in numerous reservoir sands with collectively 100 m of net pay (predominantly oil-bearing), exceeding pre-drill expectation Reservoir sands generally good quality, ranging in t
Slide 20: Amplitude Anomalies over Block 22/12
Amplitude Anomalies over Block 22/12 12-1 Field Complex 300 mmbo Wei 6-12-1 5 – 10 mmbo Wei 6-12-S 28 mmbo …several anomalies remain to be drilled Investor Presentation October 2006
Slide 21: Bayou Choctaw Field - USA
Bayou Choctaw Field - USA A Gulf Coast salt dome with shallow production and deeper potential... …offering near-term cashflow potential Investor Presentation October 2006
Slide 22: First Well – AMI No. 1
First Well – AMI No. 1 NE SW L13 AMI 1 Produced 380,000 bo from Upper Bol Mex Potential 200,000 bo in Marg Idi & Marg Howeii Potential 500,000 bo in Cib Haz Potential 1,000,000 bo in Upper and Lower BM Cib Haz Bol Mex Investor Presentation October 2006
Slide 23: Upcoming Drilling Program
Upcoming Drilling Program Proposed Locations for next 3 wells Investor Presentation October 2006
Slide 24: Papua New Guinea
Papua New Guinea 2P recoverable resources of 524 bcf gas and 25 mmb condensate… …development options emerging Investor Presentation October 2006
Slide 25: New Business Focus Area
New Business Focus Area Focus is South China Sea north and east of Malacca in an area with Strong oil and gas demand Uncomplicated geological targets in productive fairways Good deal flow with limited competition Mature operating environment Investor Presentation October 2006
Slide 26: Lei Dong Block 24/05
Lei Dong Block 24/05 An entire virgin basin in which to follow up Block 22/12 success… …surrounded by five productive analogue basins Investor Presentation October 2006
Slide 27: Lei Dong Block – Structures and Leads
Lei Dong Block – Structures and Leads 110’ 40’’ 111’ 00’’ 111’ 20’’ 111’ 40’’ Lead Area (km2) Pay (m) Unrisked Prospect Potential (mmbo) 9-1 5-20 20-50 20-120 9-2 5-20 20-50 20-120 10-1 5-15 10-30 10-80 11-1 10-20 10-30 20-150 20’ 7-1 5-12 20-50 20-80 50’’ 4* Leads 10-50 10-30 50-200 11-1 10-1 7-1 9
Slide 28: Lei Dong Block – Structures 9-1 & 9-2
Lei Dong Block – Structures 9-1 & 9-2 SW NE 0 secs 1.0 2.0 2 Km NW SW 0 1.0 2.0 Investor Presentation October 2006
Slide 29: Gulf of Thailand
Gulf of Thailand Investor Presentation October 2006
Slide 30: Block G10 – Structures and Leads
Block G10 – Structures and Leads Unrisked Lead Prospect Potential (mmbo) A 20-110 B 10-80 C 20-110 D 5-20 E 10-50 F 5-30 G 10-50 H 5-20 I 30-200 BLOCK G10/48 Located in the southern Pattani Basin Petroleum system proven Mayura oil discovery, 10-15 mmbo potential No activity since 1996 – 3 wells on e
Slide 31: Block G10 – Lead B
Block G10 – Lead B South North 1.0 2.0 2 Km 3.0 West East 1.0 2.0 3.0 Investor Presentation October 2006
Slide 32: Activity Schedule
Activity Schedule Investor Presentation October 2006
Slide 33: Suite 1, 10th Floor, 100 William Street, Sydney, NSW 2011 Australia www.horizonoil.com.au
Suite 1, 10th Floor, 100 William Street, Sydney, NSW 2011 Australia www.horizonoil.com.au T: +(612) 9332 5000 F: +(612) 9332 5050