Horizon Oil Limited · ASX:HZN
Horizon Oil — Excellence in Oil and Gas Conference 2008
34 slides from Horizon Oil's conference presentation, May 2008
Slide 1: Excellence in Oil and Gas Conference
HORIZON OIL LIMITED ABN 51 009 799 455 Excellence in Oil and Gas Conference May 2008 Brent Emmett - CEO 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
Slide 2: Presentation Outline
Presentation Outline What we set out to do … and why Overview of Horizon Oil Reserves and production forecast Key development assets • Maari field, New Zealand • Block 22/12, offshore China • Stanley field, Papua New Guinea Exploration and new business program • Thailand • New projects under review
Slide 3: What we set out to do...
What we set out to do... Build a specialist Asian E&P company of +/- US$500 million value, that will be highly valued by the market and potential acquirors Asset portfolio attributes: balanced (E vs D), concentrated, material interests, focus on quality Investor Presentation May 2008
Slide 4: Why Focus on Asia?
Why Focus on Asia? Strong demand for oil and pipeline gas Japan China Uncomplicated geological targets in productive fairways Taiwan Straightforward drilling Myanmar Laos and development parameters Thailand Vietnam Cambodia Philippines Mature operating environment Malaysia Good deal flow with Brunei
Slide 5: World Oil Demand Growth by Region 2007–2012
World Oil Demand Growth by Region 2007 – 2012 5 4.5 4 3.5 3 Million b/d India 2.5 2 China 1.5 1 0.5 US 0 Asia Pacific North America Middle East Latin America Africa Europe FSU Source: Wood Mackenzie Investor Presentation May 2008
Slide 6: Location Of Assets
Location Of Assets Investor Presentation May 2008
Slide 7: Asset Summary
Asset Summary Development PMP 38160 / PEP 38413, offshore New Zealand: 10% Maari field development installation near complete – first production Q3 2008 Block 22/12, offshore China: 30% 14.7% FEED underway on Wei 6-12 and Wei 12-8 fields – first production early 2010 Appraisal PEP 38413, offshore Ne
Slide 8: Horizon Oil Statistics
Horizon Oil Statistics This month Last $0.435 High $0.480 Low $0.305 Volume 42,143,861 12 Months Last $0.435 High $0.480 Low $0.210 Volume 182.6 million Fully paid shares 796.51 million Partly paid shares 2.5 million Employee options 31.8 million No. of shareholders 4,065 Market capitalisation $346
Slide 9: The Horizon Oil Team
The Horizon Oil Team NON-EXECUTIVE DIRECTORS RESPONSIBILITIES EXPERIENCE Fraser Ainsworth AM Chairman of Board, Chairman of 27 years in CSR’s resource & energy business, former MD of B.COMM, FAICD, FCPA Remuneration, Nomination and Delhi, former MD of SAGASCO, Founder & Executive Director of Disclos
Slide 10: Reserves, Resources and Exploration Potential
Reserves, Resources and Exploration Potential Net recoverable in millions of barrels of oil equivalent Investor Presentation May 2008
Slide 11: Net Production Forecast
Net Production Forecast Maari on production in 2008… 12000 10000 8000 BOPD 6000 4000 2000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 M aari M aari O the r Z o ne s 2 2 /1 2 W e i 6 -1 2 S 2 2 /1 2 W e i 1 2 -8 W 2 2 /1 2 O the r D is c o ve rie s N e w B us ine s s …generating US$10 million per
Slide 12: Activity Schedule
Activity Schedule Investor Presentation May 2008
Slide 13: Maari Development – New Zealand
Maari Development – New Zealand Installation near complete of a 50+ mmbo oilfield… …with 40 mmbo upside potential Investor Presentation May 2008
Slide 14: Maari Development Summary
Maari Development Summary Overall development concept:– 5 production / 3 injection horizontal wells with wellhead platform / FPSO production facilities FID capex budget US$365 million (including contingency). Current forecast cost to completion US$508 million US$46 million finance facility provided
Slide 15: FPSO - Raroa
FPSO - Raroa JU - MODU.- Ensco 107 =e r{)--) ‘Cue Taranaki Pty Ltd odd Energy}
Slide 16: Maari Installation Progress
Maari Installation Progress FPSO Raroa steaming into Wellington harbour, New Zealand, to undergo regulatory clearance Maari wellhead platform on location, in the process of jacking up the deck Raroa buoy going overboard the Toisa Porteus with anchors attached Investor Presentation May 2008
Slide 17: Maari Upside Potential
Maari Upside Potential Prospect Unrisked Prospect Mean Recoverable Potential Range (Gross) Reserves Potential OOIP (Gross) mmbo mmbo Maari M2A 20 – 30 12 Manaia Updip 35 – 140 25 Investor Presentation May 2008
Slide 18: China 22/12 – Discoveries & Prospects
China 22/12 – Discoveries & Prospects 60+ mmbo recoverable reserves and resources discovered... …development planning underway Investor Presentation May 2008
Slide 19: Wei 6-12 South Discovery
Wei 6-12 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 400 m to
Slide 20: Block 22/12 Development Planning
Block 22/12 Development Planning Stand-alone phased development concept Wellhead platform and FPSO with 20,000 – 25,000 bopd capacity at Wei 6-12S location Unmanned minimal structures at Wei 12-8W and Wei 12-8E hub facility FEED underway, FID mid 2008, construction 2008/09, on production early 2010
Slide 21: Phase 1 Wei 6-12 WHP and FPSO
Phase 1 Wei 6-12 WHP and FPSO Investor Presentation May 2008
Slide 22: Phase 2 Wei 6-12 WHP and FPSO and Wei 12-8W WHP tie-back
Phase 2 Wei 6-12 WHP and FPSO and Wei 12-8W WHP tie-back Investor Presentation May 2008
Slide 23: Phase 3 Wei 12-8E and Wei 12-2 WHP tie-back to Wei 6-12
Phase 3 Wei 12-8E and Wei 12-2 WHP tie-back to Wei 6-12 Investor Presentation May 2008
Slide 24: Papua New Guinea
Papua New Guinea Gross 2P recoverable resources of 930 bcf gas and 38 mmb condensate… …development options emerging Investor Presentation May 2008
Slide 25: Stanley-1 Wellsite
Stanley-1 Wellsite Stanley Well Head Investor Presentation May 2008
Slide 26: Stanley – Surrounding Terrain
Stanley – Surrounding Terrain Investor Presentation May 2008
Slide 27: New Business Focus Area – Exploration
New Business Focus Area – Exploration Investor Presentation May 2008
Slide 28: South East Asia Gas Demand
South East Asia Gas Demand 7000 6000 5000 4000 mmcfd 3000 2000 1000 0 T h a ila n d Java M a la y s ia V ie tn a m S in g a p o r e S u m a tr a 2005 2020 S o u r c e : W o o d M a c k e n zie E n e r g y M a r k e t S e r v ic e a n d S E A G A S Thai Average Gas Prices (Per PTTEP) 2005 2006 2007 U
Slide 29: Gulf of Thailand – Acreage Position
Gulf of Thailand – Acreage Position Investor Presentation May 2008
Slide 30: Gulf of Thailand Prospects and Leads Inventory
Gulf of Thailand Prospects and Leads Inventory Block Area HZN Unrisked recoverable oil Unrisked recoverable interest potential gas potential (sq km) (%) Gross Net Gross Net (mmbo) (mmbo) (bcf) (bcf) G1/48 17,610 20 70 14 G3/48 11,800 20 40 8 G6/48 2,280 20 105 21 G10/48 18,780 25 163 41 G11/48 13,60
Slide 31: G10/48 and G11/48 Prospects and Leads
G10/48 and G11/48 Prospects and Leads Oil Discovery Gas Fields / Discoveries Gas Discovery Gas pipeline Oil Lead Proposed Gas pipeline Gas Lead ~3 tcf Ubon Pattani Trough Malay Basin Sontaya-1 Mayura-1 Bussabong 5X 16-C 1 ~4 tcf Boondarik-1 Bua Luang-1 G10/48 18-C 1A THAILAND G11/48 Area ~7 tcf 0 20
Slide 32: Investment Highlights
Investment Highlights Strong reserves and resources position 14 – 16 mmbo 2P reserves (all oil) and resources of 17 mmbo + 357 bcf gas Re-rating expected as Maari nears first production US$10 million per month net cash flow to Horizon Oil before interest and tax at US$100 per barrel oil Further re-r
Slide 33: Activity Schedule
Activity Schedule Investor Presentation May 2008
Slide 34: Please visit the Horizon Oil website
Please visit the Horizon Oil website www.horizonoil.com.au to see:- Detailed Investor Presentation 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
Horizon Oil — Excellence in Oil and Gas Conference 2008 on 6ix