Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (November 2006)
47 slides from Horizon Oil's shareholder meeting presentation, Nov 22, 2006
Slide 1: AGM Chairman's Address and Executive Director's Presentation
Horizon OH Limited ARN 515 755 Level 10. Suite |, : 00 Wiliern Sree! Sydney NSW Austraiia 201 | Yet —61 29332 5000, Pax —6) 29332 5030 wwewhonzorol.comau 22 November 2006 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 ANNUAL GENE
Slide 2: Chairman's Address
CHAIRMAN’S ADDRESS HZN AGM 22 NOVEMBER 2006 Ladies and Gentlemen: 1. Introduction Once again — a warm welcome (and a special welcome to Mr Ming Wong based in Singapore and Ms Jyn Baker based in Perth). Ming and Jyn are senior executives of the Singapore based IMC Pan Asia Alliance Pte Ltd. IMC are n
Slide 3: Chairman's address outline and 2006 scorecard
Brent Emmett and Paul Nimmo will present a comprehensive description of this high value asset together with a review of the substantial further progress made over the year towards building a portfolio of growth assets ranging from significant production to high reward exploration prospects. In this
Slide 4: Board rating of performance against 2006 priorities
Here is how the board rated our performance:- Management Priorities 2006 (as presented to 2665 AGM) & Raise equity finance for Maari and proceed with construction phase of project Commit to 12-8 West FID in Block 22/12 and begin construction phase; drill 6-12 South prospect Build production at Bayou
Slide 5: Bayou Choctaw and new business
Bayou Choctaw (2/5) An encouraging geological result in our first well but disappointing operationally. Fortunately there are several additional exploration prospects / locations identified and ready for drilling. Whilst Horizon Oil was fully carried through the exploitation well drilled, the cash f
Slide 6: Share price performance versus peers
we assess that the price would need to stabilise at a materially higher level before we could assert that the “price (was) up to (risked) valuation”. In addition to the increased share price, we are also pleased with Horizon Oil's share price performance compared with our peers as confirmed in this
Slide 7: Market capitalisation and financing issues
Faghis issue Nov. 2006] 250 200 g 150 samo 5 az 100 50 ve x s gs <a & se - £ £ £ F FS Even after allowing for the possible impact on value of the substantial increases in the oil price over this period, the 7 fold increase from $30 million to $230 million is indeed encouraging. 3. Financing Issues D
Slide 8: Financing facility and rights issue
accommodate the financing requirements of the group’s other potential development assets. The facility agreements were signed in August 2006 after satisfactory conclusion of BOS International’s due diligence. The availability of funding is subject to normal conditions precedent for such finance faci
Slide 9: The Outlook is promising, but...
4. The Outlook is promising, but... Notwithstanding the recent decline in oil prices from record highs, we remain of the view that fundamental supply / demand interactions, coupled with OPEC’s demonstrated ability to maintain a floor under prices during market weakness, are likely to keep prices abo
Slide 10: Incentive options and management retention
Annual Report, and in the presentation later, notwithstanding the challenges described above. Secondly, because these industry conditions make it even more important (in shareholder interests) that Horizon Oil retains these special skills of our management team. That is why the board strongly endors
Slide 11: Closing remarks
As Brent Emmett observes in the Annual Report:- “"..we believe we have the right strategy, geographic focus, assets and people to deliver high returns for shareholders”. 10
Slide 12: Annual General Meeting November 06
MMORTZON OIL LIMITED | Annual General Meeting 22 November 2006 DEVELOP a : “= APPRAISE eee DISCOVER La we EXPLORE ‘iis: pres looking: as RENEE tation cantain ue references to forward sumptions, re Atations, estimates ard These are uncertain by the mature af the business and to aemurance can be given
Slide 13: Chairman's Address
MORIZO*’ O1L LIMITED Chairman's Address fig) &nnual General Meeting 2a Movember 2006 DEVELOP a : “= APPRAISE eee DISCOVER La we EXPLORE ‘iis: pres looking: as RENEE tation cantain ue references to forward sumptions, re Atations, estimates ard These are uncertain by the mature af the business and to
Slide 14: 2006 Performance Scorecard
7 72006 PERFORMANCE SCORECARD Management Priorities 2006 (as presented to 2005 AGM) Gutcome / Status Raise equity finance for Maari and proceed with construction phase of project Commit to 12-8 West FID in Block 22/12 and begin construction phase; drill 6-12 South prospect Build production at Bayou
Slide 15: WTI spot and NYMEX future
900g HeQWeAON Zz HOREIUESEIg WY 03-Jan-05 03-May-05 03-Sep-05 03-Jan-06 03-May-06 03-Sep-06 03-Jan-07 03-May-07 03-Sep-07 03-Jan-08 03-May-08 03-Sep-08 03-Jan-09 03-May-09 4, 03-Sep-09 03-Jan-10 03-May-10 03-Sep-10 03-Jan-11 03-May-11 03-Sep-11 WTI SPOT & NYMEX FUTURE ($/Bbl)
Slide 16: Relative share price performance
Yo Relative share price performance Horizon Oj os s ge eS oy e e © § © FF F © & F 3 es s & 3 Fe SK LS & SOP KS oe ee ee ee ee ee — Horizon Oif — Small Resources Index (XSR} Small Ordinaries Index (XSO) AGI Presentation 22 November 2006
Slide 17: Annual General Meeting November 06
MMORTZON OIL LIMITED | Annual General Meeting 22 November 2006 DEVELOP a : “= APPRAISE eee DISCOVER La we EXPLORE ‘iis: pres looking: as RENEE tation cantain ue references to forward sumptions, re Atations, estimates ard These are uncertain by the mature af the business and to aemurance can be given
Slide 18: Shareholder Presentation
Lia es ie |Snearenolcer Presentation Annual General Meeting 22 Moverper 2006 -* APPRAISE eee see La we Pp { EX LORE Tig presentation centains same referers ta forward looking assuriptions, representations, estimains and outcomes. These are uncertain by the cuture ef the business and to aemurance can
Slide 19: Portfolio of Assets
ion Of Assets EE oce ea AGI Presentation 22 November 2006
Slide 20: Objective Re-visited and Progress
Bs Objective Re-visited and Progress Horizon Oi] Objective To bul a spec alist 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 v Wel 6-12S discovery to serve
Slide 21: Investment Proposition
eee investment Proposition Horizon Oj) » Discovered reserves underwrite current share price Unrisked value of discovered reserves 56 - 63 cps vs, current share price 32 cps » Increase in share price expected as Maari development progresses AWE up 275% on Yolla and Cliff Head and Beach up 200% on BMG
Slide 22: Market Valuation
Pa Market Valuation Reserves valuation @ A$20/2P barrel (comparables:~ BPT, COE, MOS etc): Stage Asset HZN market value (cps) Cash (A$24 million) 3 Development Maari 2P 14-16 Development Bayou Choctaw 4 Pre-development Block 22/12 discovered fields 22-25 Appraisal Maari other zones 3-5 Appraisal Blo
Slide 23: Re-rating as Development Progresses
pe Xe-rating as Development Progresses Horizonoi - Examples AWE - AUSTRALIAN WORLDWIDE 20-SeR 36 ‘Govt approval -~ . First gaa P34 ‘Grated for “oe eet Voor 32 aoe . Z _ Yel 6,8 : poe FID. Finance. 34 BR secured.(¥olla) Clit Head i oe oa and. Cliff Head. FAD 7 oe discovery. = P aaa aen 4a 8 R16. ist
Slide 24: Resources Summary
Resources Summary i ll : By aii — i es : — Le iu cn Psy /atei5 Wor Ol a0/attial mpl AGI Presentation 22 November 2006
Slide 25: Net Production Forecast
a Net Production Forecast _Horizon.O7 Maari and Wei 6-12S on production in 2008... PRODUCTION FORECAST I i | wom are ane ans 2016 Py @ Masri * (L anew generating A$200 million EBITDA in 2008 and 2009 at USS6O0 oil AGI Presentation 22 November 2006
Slide 26: Maari Development - New Zealand
Ws Maari Development - New Zealand —_Horizon.Oif_ Development 26% complete on a 50+ mmbo oilfield... Oll/ Condensate pipeline = Oi and Gas Weil Gas pipeline + 0 aborconed N Methanol/ LPG pipeline | -& Ol shows | | Horizon 0) Permit | Gi | Gas Condensate Fields | MAARI | PMP 38160 TASMAN - SEA . als
Slide 27: OuwHH( ii iiiiiiiititththttitittnntnt'
OuwHH( ii iiiiiiiititththttitittnntnt' Hori . a i Prosontation 22 November 2006
Slide 28: Maari Development Progress
@ Maari Development Progress Horizon Oj] va Overall development concept confirmed - 5 production / 3 injection horizontal wells with wellhead platform / FPSO production facilities FID capex budget US$365 million (including contingency) US$40 million finance facility provided to HZN by BOS Internatio
Slide 29: Maari WHP Construction
277 6 Maari WHP Construction FIRST GUT OF MAART COMMENCED ON 24-80-06 _ 7 4 resentation 22 November 2006
Slide 30: Maari WHP Construction
— 7) Maari WHP Construction _Horizon.Oj ist WELDING WAS COMMENCED ON 2ist 2006 tation 22 November 2006
Slide 31: Maari WHP Construction
yo) Maari WHP Construction CNC & STRIP CUTTING ON PROGRESS _soesnaggp _ si oi al ‘sentation 22 November 2006
Slide 32: China 22/12 - Discoveries & Prospects
Be China 22/12 ~ Discoveries & Prospects HorizonQiL 60+ mmbo recoverable reserves discovered... Wushi 1-4 P50 20-30 mmb O1P Wei 6-12 SE P50 48 mmb O1P Wushi 1-5 P50 30-100 mmb OIP Wei 6-12 SW i / i P50 56 mmb GFP i x a Wei 12-2 Field P50 50-59 mmb OIP. Wei 12-8 E Field P50 88 mmb GIP cae cl,32-8 Dev
Slide 33: Block 22/12 Development Planning
Pe Biock 22/12 Development Planning Stand-alone development concept Processing / wellhead platform and FSO / FPSO with 20,000 - 25,000 bopd capacity at Wei 6-125 location > Development candidates Unmanned minimal structures for Wei 6-12 and other nearby fields, tied back to Wei 6-12S hub facility De
Slide 34: Wei 6-12 South Discovery
Pee Wei G-12 South Discovery . Gross pay interval of 500 m in numerous reservoir sands with collectively 100 m of net pay (predominantly oil-bearing) Reservoir sands generally good quality, up to 25 m thick; DSTs over 3 main pay zones flowed at combined rate of 5,750 bopd Second sidetrack drilled 40
Slide 35: Wei 6-12 South Discovery
i 6-12 South Discovery Horizon O11 Wei 6-128-18b Wei 6-128-1 NNE Well Path Trajectory Bea HED 197200 Wei 6-128-1$a TSC Sand p THD Serd Core 3 Trays 5-8 UV Photography PHO TESA TAs, Tait T32 Upper Sand FAL Deak HND© iighest frown wl from jogs LEG = jowest Snowe aif horn logs saa AGI Presentation 22 N
Slide 36: Amplitude Anomalies over Block 22/12
Po Arnplitude Anomalies over Block 22/12 _HorizonOil . several anomalies remain to be drilled AGI Presentation 22 November 2006
Slide 37: Papua New Guinea
Bs Papua New Guinea 2P recoverable resources of 524 bef gas and 25 mmb condensate... sear a oe / PACIFIC OCEAN PRLS (10.38%) g)) ElevalaKetu (hag Condensate ai Horizon ¢ Perenit # Kutubu Gét Pipatine il Fats Gas Finks GULP OF PAPLA development options emerging AGI Presentation 22 November 2006
Slide 38: Oil and Gas Producing Regions
Oil and Gas Producing Regions Focus is South China Sea north and east of Malacca in an area with » Strong oll and gas demand » Uncomplicated geological targets in productive fairways » Good deal flow with limited INOIAN : competition OCEAN C 4 » Mature operating environment A SOOKn AGI Presentation
Slide 39: Lei Dong Block 24/05
WEAR SAB Billion BO Discovered CNOOC Producing 26,000 BOPD BEIBU GULF BLOCK 2212 Horizon Of 30% Area 456 sq km \ BRUIOING GAG Gas Discovery WS SAR Oll Discevery, Husky Energy Exploring He Lei Dong Block 24/05 An entire virgin basin in which to follow up Block 22/12 success... Le G Mining Oi a Shale
Slide 40: Lei Dong Block - Structures and Leads
ong Block ~ Structures and Leads Horizon.0j] 141° 007" 11 20° 111 407" Lead Area (kim2) Pay Cn} Univigked Prospect Potential Gaumbe} G1 a0~ 20-120 o-2 20+ 20-120 10-2 I 16-80 tek = 20-180 Pek aO~ 26-89 4* Leads 50-200 inl Apparent Structures Stratigraphic and Drape Laads Potential Source Area = gros
Slide 41: |
| AGI Presentation 22 November 2006
Slide 42: Gulf of Thailand
f of Thailand Gul : oe GULE OF Gad, We "Gas Fields / Discoveries coe Gas pipeline ss Proposed Gas pipeline a oy Fi Ae Le MALACCA STRAT AGI Presentation 22 November 2006
Slide 43: Block G10/48 Prospects and Leads
[Gece BLOCK G10/48 SOUTHERN PATTAN! BASIN PROSPECTS AND LEADS Unrisked Prospect Potential (rambo) A0- LEO 10-80 20-140 Gr 20 10-50 soNaKE LA BASIN GS-30 Hlalm|O a|ae/s 10-50 S-20 we | BO- 200 “BLOCK G10/48 Located in the southern Pattan! Basin Petroleum system proven Mayura oil discovery, 10-15 mmbo
Slide 44: Block G10 - South
Pe Biock G10 — South oe HE ie Lead B
Slide 45: Management priorities
ic oritie MEME Management Pr € 2 COMSTTUCTION » Obtain Petroleum Contract for Lei Dong and farmout » Complete initial seismic acquisition on Block G10/48 in Thailand and define drilling locations » Realise value for Bayou Choctaw » Advance evaluation and commercialisation of PRL 4 and PRL 5 in PNG »
Slide 46: Activity Schedule
Ms Activity Schedule Tach: Name Fad Bie, Parl Bic Bs Sep. Say Jan eae ‘Mee | lal See TRE aS een Te, ‘Sap Now" eT Ble, aati Developmert iy [aT aT oe an Te Ray air Sontracts fully bie “Design, Construct and install On: Production Block 22/12 Development ~Pre-Feastbility Stucy (ial 12-80) Feasibility S
Slide 47: rrr
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