Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (November 2022)
26 slides from Horizon Oil's shareholder meeting presentation, Nov 16, 2022
Slide 1: Horizon – Annual General Meeting 2022
Level 6, 134 William Street P +61 2 9332 5000 Woolloomooloo NSW 2011 F +61 2 9332 5050 Australia horizonoil.com.au 16 November 2022 HORIZON – ANNUAL GENERAL MEETING 2022 The Manager Attached are copies of the following documents related to the Annual General Company Announcements Meeting of Horizon
Slide 2: Chairman's Address – Mike Harding
Chairman’s Address – Mike Harding Ladies and Gentlemen, Horizon has again posted a strong set of results for this financial year. Similar to last year, coupled with a strong balance sheet and consistent low cost production and cash generation, we were pleased to return a further AUD 3 cents per shar
Slide 3: CEO's Address – Richard Beament
CEO’s Address – Richard Beament Thanks Mike. Before I provide a company update, I would like to take this opportunity to also welcome you all in person to our first physical AGM in a few years. I’d like to take a few minutes to provide you with an update on the Company, in particular, the strategy a
Slide 4: CEO's address: FY22 highlights continued
o Importantly, this drove over a 100% increase in cashflow generation, which facilitated the recent AUD 3 cent per share distribution to shareholders. o The Group also executed a US$20 million extension to its senior debt facility which allowed us to further optimise the Group’s capital structure. o
Slide 5: CEO's address: Block 22/12 production
While historical production has been dominated by the WZ6-12 and 12-8W fields, the WZ12-8E field in the bottom right hand side of the graphic is the most recent addition to our production base, having only come onto production in April this year. As many of you would know, since the start of Block 2
Slide 6: Block 22/12: Infill, Appraisal & Exploration Opportunities
Slide 11 – Block 22/12: Infill, Appraisal & Exploration Opportunities Looking at the various infill, appraisal and exploration opportunities in Block 22/12 in more detail, this slide shows many of the possible future drilling targets. As mentioned, our objective is to focus on bringing these opportu
Slide 7: Plans for the next 12 months
Slide 16 – Plans for the next 12 months This chart sets out the timing of Operational activity over the period to the end of the 2023 calendar year. Please note that budget processes are underway and I stress that the timings are indicative and remain subject to JV and regulatory approvals, and rig
Slide 8: 2022 AGM Presentation
2022 AGM PRESENTATION 2022 – AGM PRESENTATION
Slide 9: Compliance Statement
COMPLIANCE STATEMENT Disclaimer Reserves Disclosure ► Statements contained in this material, particularly those regarding the possible or assumed ► Unless otherwise stated, all petroleum reserves and resource estimates refer to future performance, costs, dividends, returns, production levels or rate
Slide 10: Delivering on Strategy
DELIVERING ON STRATEGY FURTHER DISTRIBUTIONS TO CONTINUE INVESTING IN MAXIMISE FREE CASHFLOW1 SHAREHOLDERS PRODUCTION GROWTH ► Generated EBITDAX of US$73 million in ► AUD$49.4 million distributed in CY2021 ► WZ12-8E field – commencement of FY22, with net cash of US$42.8 million including AUD 3c capi
Slide 11: FY22 Highlights
FY22 HIGHLIGHTS STRONG CASHFLOW GENERATION DRIVING SHAREHOLDER RETURNS FINANCIAL OPERATIONAL SHAREHOLDER ESG RETURNS ► Sales revenue of US$108.1 ► WZ12-8E project - oil from six ► AUD 3 cent per share capital ► Strong safety record below million wells started in Q2 CY2022, 18 return completed during
Slide 12: Share Price Performance
SHARE PRICE PERFORMANCE $0.18 3c distribution 18 $0.16 16 $0.14 14 $0.12 12 Volume 10^6 $0.10 10 $0.08 8 $0.06 6 $0.04 4 $0.02 2 $- 0 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 HZN Trading Volume (RHS) HZN Share Price S&P/ASX 200 Energy I
Slide 13: Horizon's Portfolio
HORIZON’S PORTFOLIO CHINA, BEIBU GULF, 26.95% PRODUCTION / 55% EXPLORATION ► CNOOC (51% - Operator) ► Roc Oil (19.6%) ► Majuko Corp. (2.45%) NEW ZEALAND, MAARI, 26% ► OMV (69% - Operator) ► Cue Energy (5%) 2022 – AGM PRESENTATION 55 5
Slide 14: China
CHINA 2022 – AGM PRESENTATION
Slide 15: Block 22/12: Reliable, High Margin Production
BLOCK 22/12: RELIABLE, HIGH MARGIN PRODUCTION Export to Weizhou WZ 6-12 North ASSET OVERVIEW Terminal WZ 6-12 Mid WZ 6-12 South ► Block 22/12, Beibu Gulf, China, 26.95% production / 55% exploration WZ 6-12 Sliver CNOOC ► JV: CNOOC (51% - Block 22/12 Operator), Roc Oil (19.6% - 12-8E Operator), Majuk
Slide 16: Block 22/12: WZ12-8E Development Project
BLOCK 22/12: WZ12-8E DEVELOPMENT PROJECT WZ12-8E DEVELOPMENT PROJECT WZ12-8E PHASE 1 DEVELOPMENT ► Project commissioned and brought on to production in April 2022 WZ12-8E WHP ► WZ12-8E Phase 1: 6 development wells and 1 water disposal well successfully drilled and Export pipeline completed, has cont
Slide 17: Block 22/12: WZ12-8E Phase 2
BLOCK 22/12: WZ12-8E PHASE 2 WZ12-8E PHASE 2 WZ12-8E PHASE 2 WELL LOCATIONS ► Favourable production results from WZ12-8E Phase I Weizhou well drilled: development drilling programme have led to JV sanctioning a A1 WZ12-8E follow-on Phase 2 development drilling programme wellhead ► 3 additional Jiaow
Slide 18: Block 22/12: WZ6-12 Infill Drilling & Workover Programme
BLOCK 22/12: WZ6-12 INFILL DRILLING & WORKOVER PROGRAMME WZ6-12 DRILLING AND WORKOVER PROGRAMME ► A five well workover program completed in Sept 22- successfully reinstated / enhanced production from existing WZ6-12 wells – with incremental production benefit on completion of in excess of 1,500 bopd
Slide 19: Block 22/12: Infill, Appraisal & Exploration Opportunities
BLOCK 22/12: INFILL, APPRAISAL & EXPLORATION OPPORTUNITIES WZ6-12 DRILLING AND WORKOVER PROGRAMME WZ6-12A10S1 ► The JV has a strong portfolio of 2P, 2C and 2U infill, appraisal and infrastructure led near-field opportunities WZ6-12A12/S1 ► During 2022, significant efforts were made to accelerate dev
Slide 20: Block 22/12: History & Forecast (Gross)
BLOCK 22/12: HISTORY & FORECAST (GROSS) History Forecast 20,000 History 2P forecast Indicative future activities 2P forecast Gross oil rate (bopd) 15,000 History Indicative future activities 10,000 End of production period 5,000 Cumulative production to 30 Sept 2022: 33.6 MMbbl 0 2018 2019 2020 2021
Slide 21: New Zealand
NEW ZEALAND 2022 – AGM PRESENTATION
Slide 22: Maari: Stable Performance
MAARI: STABLE PERFORMANCE ASSET OVERVIEW ► Maari, New Zealand, 26% ► JV: OMV (69% - Operator), Cue Energy (5%) ► Maari/Manaia generates approximately 30% of Horizon operating cashflow ► Cash operating costs for FY2022 of $28/bbl produced ► CY2022 production impacted by COVID led deferrals of workove
Slide 23: Maari: History & Forecast (Gross)
MAARI: HISTORY & FORECAST (GROSS) History Forecast 10,000 History Forecast Life extension Indicative future activities End of 8,000 Production Forecast period Indicative future activities Gross Oil Rate (bopd) History 6,000 Life extension 4,000 2,000 Cumulative production to 30 Sept 2022: 45.5 MMbbl
Slide 24: Plans for the Next 12 Months
PLANS FOR THE NEXT 12 MONTHS1 2022 2023 Q4 Q1 Q2 Q3 Q4 Block 22/12 WZ12-8 East phase 2 infill drilling (between three and five wells) In progress Block 22/12 water-handling capacity In progress & ongoing upgrade Block 22/12 infill drilling (between one Subject to JV approval and three wells)1 Reinst
Slide 25: 2023 Summary Activity Outlook
2023 SUMMARY ACTIVITY OUTLOOK FURTHER DISTRIBUTIONS TO CONTINUE INVESTING IN MAXIMISE FREE CASHFLOW1 SHAREHOLDERS PRODUCTION GROWTH ► Recent investment in Block 22/12 WZ12- ► Potential for further capital management ► WZ12-8E field – commencement of 8E development – Phase 1 & 2, and WZ6- initiatives
Slide 26: 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 2022 – AGM PRESENTATION