Horizon Oil Limited · ASX:HZN
Horizon Oil — RIU Good Oil Conference 2018
19 slides from Horizon Oil's conference presentation, Sep 12, 2018
Slide 1: ASX cover letter: RIU Good Oil Conference presentation
Horizon Oil Limited ABN 51 009 799 455 Level 6, 134 William Street, Woolloomooloo NSW Australia 2011 Tel +61 2 9332 5000, Fax +61 2 9332 5050 www.horizonoil.com.au 12 September 2018 The Manager, Company Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) RIU
Slide 2: RIU Good Oil Conference 12 & 13 Sept 2018
HORIZON OIL LIMITED/ ABN 51 009 799 455 RIU Good Oil Conference 12 & 13 Sept 2018
Slide 3: Disclaimer
Disclaimer 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 trend projections and any estimated
Slide 4: Horizon Oil as an investment proposition
Horizon Oil as an investment proposition Strong, long-lived production profile and strong cash flow generation • Current production entitlement is ~5,500 bopd of net oil sales from developed, offshore, conventional oil fields • Strong net operating cash flow from China and New Zealand, FY2019 foreca
Slide 5: Horizon Oil (ASX:HZN) snapshot
Horizon Oil (ASX:HZN) snapshot A focused portfolio of conventional production, development and exploration assets in Asia-Pacific region, including : • 26.95% interest in Beibu Gulf oil fields, offshore China • 26% interest in Maari/Manaia oil fields, offshore New Zealand • 30% interest in Western L
Slide 6: 2018 Key Achievements
2018 Key Achievements • Oil sales volume of 1.65 million barrels 16% higher than FY 2017 • Sales revenue of US$100.0 million 46% higher than FY 2017 • EBITDAX of US$68.5 million 52% higher than FY 2017 • Net cashflow from operating activities of US$57.6 million 62% higher than FY 2017 • Low operatin
Slide 7: Beibu Gulf, China (26.95%)
Beibu Gulf, China (26.95%) Production from multiple fields via 18 wells, currently approximately 12,000 bopd Customary petroleum contract, with remaining cost recovery oil entitlement of US$49 million to be recovered through 2019 and 2020 Low operating costs; below US$10 per bbl sold for FY 20
Slide 8: Beibu Gulf - near-term development project
Beibu Gulf - near-term development project Leased mobile production platform (MOPU) • Development plan (ODP) for integrated development of WZ 12-8E and associated fields to be submitted for Government approval in 2018 • Three stage development, with target first production in 2020 • Platform on WZ 1
Slide 9: Maari / Manaia fields, New Zealand (26%)
Maari / Manaia fields, New Zealand (26%) • Gross production currently ~6,500 bopd from 9 production wells • Joint venture focus on production optimisation and operating cost reductions able to be derived from ownership of FPSO • Continued evaluation of opportunity for future development of material
Slide 10: Western Forelands Region, PNG
Western Forelands Region, PNG • Horizon Oil holds material interests in all four fields that will supply the proposed Western LNG project and has an ~30% interest in the total gross audited resources including 64 mmbbls of condensate and ~2,200 PJ of sales gas • Planning for the proposed Western LNG
Slide 11: Western LNG resources distribution and ownership
Western LNG resources distribution and ownership • Significant exploration and appraisal activity by HZN and its partners, including 19 wells and 11 production tests, has enabled independent certification of a material resource in the Western Foreland Region • Flow tests confirmed capacity for Stanl
Slide 12: Western LNG, project overview
Western LNG, project overview • Western LNG comprises a 1.5 – 2.0 mmtpa (nameplate) modular liquefaction facility, to be located near-shore Daru Island • 520 km gas and condensate pipelines would connect western foreland fields, containing independently audited appraised resources of 22002 PJ of sal
Slide 13: Western LNG development scheme
Western LNG development scheme WLNG development - 1.5 mtpa sales capacity Aggregated raw gas production profile - 2C resources 300 250 Wellhead rate (mmscfd) 200 150 100 1C resources profile 50 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Production year PRL 21
Slide 14: 2019 Outlook
2019 Outlook Financial Continued strong operating cash flows supported by developed, low cost, conventional oil fields Progressive reduction in debt Block 22/12, China Continued higher production entitlement (~35% share of production) Final investment decision of the proposed WZ 12-8E phased
Slide 15: APPENDICES
APPENDICES 14
Slide 16: FY2018 Financial overview
FY2018 Financial overview (US$ million) FY 2018 FY 2017 ∆ ∆ (%) • Material increase in sales volumes Sales Volume (mmbbl) 1.65 1.42 0.23 16% • Robust and increasing EBITDAX and cashflow generation at field level Revenue 100.0 68.5 31.5 46% • Underlying profit before tax of EBITDAX 68.5 45.2 23.3 52%
Slide 17: FY 2018 Key cashflow drivers
FY 2018 Key cashflow drivers 140 US$m 120 100 (25) 75 (8) 100 (9) 58 (17) 80 (13) 60 (8) (17) 40 24.5 27.6 20 0 Opening Revenue Opex Net Corporate & Interest Net cash Acquisition Investment Exploration Debt Closing cash cash balance operating tax inflows from of oil & gas in oil & gas expenditure re
Slide 18: Full Year performance and 2019 forecast
Full Year performance and 2019 forecast 17
Slide 19: For more information please contact
For more information please contact: T: +61 2 9332 5000 Level 6, 134 William St Horizon Oil Limited F: +61 2 9332 5050 Woolloomooloo NSW 2011 Michael Sheridan Chief Executive Officer E: info@horizonoil.com.au horizonoil.com.au Media enquiries Gavan Collery M: +61 419 372 210 ResourceComms Pty Ltd E: