Horizon Oil Limited · ASX:HZN
Horizon Oil — Good Oil Conference 2006
30 slides from Horizon Oil's conference presentation, Sep 6, 2006
Slide 1: Horizon Oil presentation at Good Oil Conference (ASX announcement)
6 September 2006 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) PRESENTATION AT GOOD OIL CONFERENCE IN FREMANTLE, WESTERN AUSTRALIA The attached presentation will be given today by Brent Emmett, Horizon Oil’s Ch
Slide 2: Investor Presentation, Good Oil Conference
HORIZON OIL LIMITED ABN 51 009 799 455 Investor Presentation Good Oil Conference 5 – 6 September 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
Slide 3: Presentation Outline
Presentation Outline Strategy: Focus on share price Reserves and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on SE Asia • China • Thailand Why buy Horizon Oil (HZN)? Investor Presentation 2006
Slide 4: Presentation Outline
Presentation Outline Strategy: Focus on share price Reserves and value Key development assets Maari field, New Zealand Block 22/12, offshore China Exploration and new business program Focus on SE Asia China Thailand Why buy Horizon Oil (HZN)? Investor Presentation 2006
Slide 5: Asset Weighting – Where Does Horizon Oil Fit?
Asset Weighting – Where Does Horizon Oil Fit? EXPLORATION HIGH RISK HIGH REWARD X HZN DEVELOPMENT PRODUCTION MODERATE RISK LOW RISK MODERATE – HIGH REWARD LOW REWARD Investor Presentation 2006
Slide 6: Examples of Re-rating with Development Progress
Examples of Re-rating with Development Progress Investor Presentation 2006
Slide 7: Location Of Assets
Location Of Assets CHINA USA BLOCK 22/12 30% BAYOU CHOCTAW 14.0 – 28.5% CHINA BLOCK 24/05, LEI DONG 100% GULF OF THAILAND 25% PAPUA NEW GUINEA PRL 4 (STANLEY) 27.95% PRL 5 (ELEVALA/KETU) 10.36% NEW ZEALAND PMP 38160 (MAARI) 10% Investor Presentation 2006
Slide 8: Trading Statistics
Trading Statistics (as at 1 September 06) 12 Months Last $0.34 Shareholder Distribution High $0.49 Low $0.10 Oasis Energy Volume 252.1 million (incl management) 20.4% Total Number of Shares 656.6 million Retail 34.7% Free Float 656.6 million No. Shareholders 3,745 Market Capitalisation $223.3 millio
Slide 9: Presentation Outline
Presentation Outline Strategy: Focus on share price Reserves and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on SE Asia • China • Thailand Why buy Horizon Oil (HZN)? Investor Presentation 2006
Slide 10: Reserves, Resources and Exploration Potential
Reserves, Resources and Exploration Potential Net recoverable oil in millions of barrels (mmbo) N et R eserves Unrisked Net Exploration Potential N et R eserves in D evelop men t and Aw aiting Appraisal Appraised for D evelopm ent Maari (other Block 22/12 zones + (Wei 6-12 B lock 22/12 Manaia) area)
Slide 11: Production Forecast and Market Valuation
MARKET VALUATION @ $A$20/barrel of proven + PRODUCTION FORECAST – Net daily oil (bopd) probable reserves / resources / potential 250 12000 200 10000 8000 Bopd 6000 Exploration 150 potential 4000 (risked) Share Value (cents) 2000 0 100 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Bayou Choc
Slide 12: Presentation Outline
Presentation Outline Strategy: Focus on share price Reserves and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on SE Asia • China • Thailand Why buy Horizon Oil (HZN)? Investor Presentation 2006
Slide 13: Maari Development – New Zealand
Maari Development – New Zealand Development underway on a 50+ mmbo oilfield… …with 10 – 20 mmbo upside potential Investor Presentation 2006
Slide 14: Maari Development Progress
Maari Development Progress Overall development concept confirmed - 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 Positive FID from all partners Novemb
Slide 15: China 22/12 – Discoveries & Prospects
China 22/12 – Discoveries & Prospects 6-1-2 Wei 6-12 Field 6-1-3 Wei 6-12 South Wei 6-1-1 Wushi 1-3-1 Wushi 1-4 P50 20-30 mmb OIP Wushi 1-3W-1 Wei 6-12 West Wei 6-9-1 Wei Wei 12-1 Field 12-1 Oil Field Wei 6-12 SE Wei 6-9-2 P50 STOOIP = 750 mmb Wushi 1-5 P50 30-100 mmb OIP Wei 6-12 SW Wei 12-2 Field
Slide 16: Block 22/12 Development Planning
Block 22/12 Development Planning Development options Stand-alone development - Processing / production platform and floating storage at Wei 6-12S location - Unmanned minimal structures for other fields, tied back to Wei 6-12S hub facility Add on to existing Chinese facilities - Unmanned minimal stru
Slide 17: 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 2006
Slide 18: 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 19: Amplitude Anomalies over Block 22/12
Amplitude Anomalies over Block 22/12 Block 22/12 Anomalies 12-1 Field Complex 300 mmbo …utilised to define drilling targets Investor Presentation 2006
Slide 20: Presentation Outline
Presentation Outline Strategy: Focus on share price Reserves and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on SE Asia • China • Thailand Why buy Horizon Oil (HZN)? Investor Presentation 2006
Slide 21: 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 2006
Slide 22: 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 2006
Slide 23: 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 24: 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 2006
Slide 25: Gulf of Thailand
Gulf of Thailand Investor Presentation 2006
Slide 26: 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 27: 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 2006
Slide 28: Presentation Outline
Presentation Outline Strategy: Focus on share price Reserves and value Key development assets • Maari field, New Zealand • Block 22/12, offshore China Exploration and new business program • Focus on SE Asia • China • Thailand Why buy Horizon Oil (HZN)? Investor Presentation 2006
Slide 29: Investment Proposition
Investment Proposition Discovered reserves underwrite current share price Increase in share price expected as Maari development progresses Further significant increase anticipated as development of other discoveries progresses – “project delivery” Potential for multiple returns from exploration prog
Slide 30: 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 Suite 1, 10th Floor, 100 William Street, Sydney, NSW 2011 Australia www.horizonoil.com.au T: +(612) 9332 5000 F: +(612) 9332 5050