Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (November 2004)
38 slides from Horizon Oil's shareholder meeting presentation, Nov 26, 2004
Slide 1: Chairman's Address and CEO's Presentation cover letter
Hesrianors oH Limited . 26 November 2004 Ay Auntie PUL E WORE RAEI COSTA The Manager, Company Announcements Australian Steck Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sir, ANNUAL GENERAL MEETING CHAIRMAN'S ADDRESS AND CHIEF EXECUTIVE OFFICER’S PRESENTATION In accordance
Slide 2: Chairman's Address: 2003/2004 Performance Scorecard
CHAIRMAN’S ADDRESS HZN AGM 26 NOVEMBER 2004 Ladies and Gentlemen: Once again, on behalf of the Board, a warm welcome to our fellow shareholders and invited guests. I am pleased to report that we remain firmly on track towards building the well-balanced risk/reward portfolio of opportunities that und
Slide 3: Share price performance versus junior oils
On the positive side, the highlights for the year were clearly the farmout of the Bayou Choctaw interest and the award of the rights to Lei Dong Block 24/05, offshore southern China. Brent Emmett will describe in detail the significance of these 2 transactions. On the negative side, we are disappoin
Slide 4: The Portfolio of Opportunities
» perhaps for this reason, (together with the heavy discounting of project value until production is certain) based on the estimates that Brent Emmett will present, it appears very likely that the current share price significantly undervalues the company. For example, the mid point reserve valuation
Slide 5: Oil price outlook
We don’t profess to be oil price forecasting experts, and we readily acknowledge the risks associated with relying on oil price forecasts. However, we do agree with the view expressed by the Reserve Bank of Australia in the October 2004 Bulletin, namely:~ “Overall, the recent increase in oil prices
Slide 6: Block 22/12 and Maari Field development
> Block 22/12, Offshore China The results of recent drilling on Block 22/12 have caused. reconsideration of the previous development concept, with the likely outcome being a development plan that utilizes existing infrastructure and involves substantially less expenditure than previously envisaged.
Slide 7: The Outlook
The Outlook Finally, although the delays in two of the company’s potential development projects (Maari and Block 22/12) are frustrating, overcoming such challenges is common in the oil and gas industry. Our view remains that the two projects (together with likely near term cash flows and development
Slide 8: Horizon Oil Limited Shareholder Presentation
ABN 51 009 799.455 HORIZON OIL LIMITED Shareholder Presentation Annual General Meeting 26 November 2004
Slide 9: The Horizon Oil Team
a, 2 The Horizon Oil Team BOARD RESPONSIBILITIES EXPERIENCE Fraser Ainsworth am Chairman, Member of Audit, Remuneration and Risk Management Committees, Chairman of Nomination Committee 26 years in CSR’s resource & energy business, former MD of Dethi, former MD of SAGASCO, Founder & Executive Directo
Slide 10: About Oasis Horizon Oil
eee About Oasis Horizon Oil « Oasis Energy Investments Pty Ltd is a company specifically incorporated to hold an interest in Horizon Oil = Current shareholding is 149.6 million ordinary shares, equivalent to 33.1% of shares on issue « Shareholders are:- » TRT Holdings, Inc. (and associates) - contro
Slide 11: Investment Objectives
iii: Investment Objectives Horizon. Oj « Objectives >» To build Horizon Oil to a value peak within 5 years (2007) >» To achieve a share price of 50 cents per share, with a stretch target of $1.00 » To provide all shareholders with the opportunity of crystallising their investment = Industry Environm
Slide 12: ee OP Dark ane
ee OP Dark ane ye Es Ls ee \ ie lige) a ii aA oT a oo i nn iit innnnnn AGM Presentation 28 November 2004
Slide 13: Horizon Oil's Portfolio
ae Horizon Oil’s Portfolio _Herizon Oil 150 ; ¢ Tahte of bitarestat Lei Dong ae ee a & ns . Binck 288, Chine & Karel PPL 246, PA e Bayou Chacian, US S 400 - Lei Derg, Chips th qt Bayou g Block 22/12 Choctaw e 86 discoveries # Block 2212 ~ Maar field e prospects a oy é o = F 4 Technical Fisk “Deel Xs
Slide 14: Horizon Oil Valuation
ee Horizon Oil Valuation Horizon. Oi | Net $m cps reserves (mmbo) Market cap (452 m shares) 54 12 Cash 5 1 Maari P50 reserves 5 30 - 50 7-11 Development of Block 22/12 discoveries 4-5 20 - 40 4-9 Bayou Choctaw exploration / development 2-3 30 - 50 7-11 Total — Projects under development 11-13 85 - 1
Slide 15: Work Programme 2005-2006 (1)
eee Work Programme Horizon. Oj 2005 — 2006 (1) * Drill Kapul in PPL 240, PNG / HZN interest 20% / gross potential 130 mmbo * Bayou Choctaw, USA / HZN interest 14.5 - 28% / gross potential 12 - 16 mmbo » Finalise 3D seismic reprocessing December 2004 » Rehabilitate existing producers » Complete new z
Slide 16: Work Programme 2005-2006 (2)
Pee Work Programme _Herizon Oil 2005 ~ 2006 (2) « Maari field, NZ / HZN interest 10% / P,, reserves 50 mmbo gross > FID by mid 2005 > Develop and onstream Q1 2007 at initial rate of 35,000 bopd gross # Lei Dong, China / HZN interest 100% / virgin basin » Reprocess and interpret up to 2,800 km existi
Slide 17: Bayou Choctaw lease map
VICTORY LEASE THACT 1 285 Acres Moron OF 23.5% VICTORY LEASE TAACT 2 200 Agres ee Ges Well * Ot and Gag Well e (il, abandoned - Dry hole BAYOU CHOCTAW [T4028 5%) Horizon G0 14.0% WILBERT LEASE 1113 Acres pa ST RATEGIC AGM Presentation 28 November 2004
Slide 18: Seismic Line on Bayou Choctaw
a Seismic Line on Bayou Choctaw Harzonojl ia EI HH AGM Presentation 28 November 2004
Slide 19: Recent Processing on Bayou Choctaw
es Recent Processing on Harizan Oj) Bayou Choctaw : . AGM Presentation 28 November 2004
Slide 20: Block 22/12 - China
eee ee Block 22/12 - China Horizon Oj) @ Ol Well OH ered Gas Well : Oiland Ge Shaw ~® Ol abandoned oe hey Foote: ON Meld ime Gas Pekd oor Poosipect, ‘Wetheteland | Peachanitin Foal ~ BLOCK aa/i2 welag-71 Wel 12-6 AGM Presentation 28 November 2004
Slide 21: Block 22/12 Development Plan
fie eeBlock 22/12 Development Plan Herzanoj) = Concept » Unmanned minimal structure(s) (water depth 30 m) connected by flowlines to CNOOC 12-1 platform >» Crude processing and export carried out on 12-1 platform » Processing and transportation fee paid to CNOOC » Strong local market for crude oil *
Slide 22: Maari Development
ee Maari Development Harizan. Oj) Oi / Condensate pepetine Che Gas pipeline @ 00 eberdonedl Methanol LPG pipaling <—@ Tl shows Co Harisen Gil Pernt te Gil and Gas Feile ‘Sm Gas Condensate Fields 432 ie? PEP 38413 AGM Presentation 28 November 2004
Slide 23: Maari Development Planning
fies Maari Development Planning _Herizan0i)_ * Field fully appraised, development planning and design underway = Qverall development concept to be confirmed by end 2004 - most likely horizontal wells with wellhead platform / FPSO or jack-up DPU / FSO = FEED to follow immediately thereafter * FID Apr
Slide 24: Maari preferred development option
om ent Opt elopm ery fe Preferred Maari AGM Presentation 28 November 2004
Slide 25: Wellhead platform with jack-up drilling rig
llhead platform with jack-up i drilling rig alongside (FPSO not shown) ce AGM Presentation 28 November 2004
Slide 26: Jack-up drilling and production unit
Pe Jack-up drilling and production unit _Horizen.Oj (PPL) with FSO in backgrouwnel AGM Presentation 28 November 201
Slide 27: Papua New Guinea acreage
eee PPL 226 (10,00%6) PAL 8 (7.28%) Eleva {Gas/Condensala disco PPL 240 (20.00%) i Kapul Prospect Guinea Acreage Co Horiens 00 permet oon RUDE OF Pipeliee 00 Fleids Gas Flats tion 28 November 2004
Slide 28: PRLS
PRLS Pe Sp io P08) ae ope 4 saa 4 ee A PPL2SG “OH Biarah Lisle Po paretar) Bligh PNG Lik tea OR ‘pesbe (PH Liniied i We" VE ide? ME 13° WE AGM Presentation 28 November 2004
Slide 29: Kapul Prospect
Came oe Prospect | pasate rs : : . ee Asahi wee PN91-122 ‘ean Hi Waki AGM Presentation 28 November 2004
Slide 30: Kapul Prospect seismic line
ited Kapul Prospect PPL240 - Kapul Structure: dip line PN91 - 122 s Proposed Kapul-1. T Carb —— Near top KFZ B Carb Wedge — B Carb T Toro wun T lagifu —= Basement ag: y TWT (sec) AGM Presentation 28 November 2004
Slide 31: Lei Dong Block 24/05
i el Dong Block 24/05 oo secesesis —— LSE LE, CHINA: ' he (aLock aaa WEDINAN BAG Hosizon it 30% Exscovered. WUSHI SAG OW Discovery PUSHAN SAG CAP Procicing (if HORIZON OIL INTERESTS SOUTH CHINA Hainenisland BLOCK 2405 Herzen Oil 100%. aes Km? HE 4E9E WE AGM Presentation 28 November 2004
Slide 32: AGM Presentation 28 November 2004
AGM Presentation 28 November 2004
Slide 33: Comparison Of East
a Comparison Of East
Slide 34: Comparison Of East
ee Comparison Of East AGI# Bresantalion 28 November 2004
Slide 35: sanias crear
sanias crear x) 586 SE
Slide 36: Activity Schedule
fe Activity Schedule Horizan.0jl_ Task Marne ba 2005 Zui. H Pliers dul i Sen Now ? Jan | Mari Mavi Jul T Sen [Nov | Jan! Mar i May! Jul Sep [New fan | Mar! Maw Jul Bayou Choctaw Workover of Existing “ones Workover of New Zanes Stable production” POD Cniling (~8 wells} Exploration ‘Drilling (-4 wells
Slide 37: Management Priorities 2005
Management Priorities i / 2005 _Herizon Oil Follow up on Kapul, if warranted Grow Bayou Choctaw production with re-completion and development drilling programmes Commit to Maari FID and begin design and construction phase Submit 12-8 West ODP and begin design and construction phase Finalise Lei Dong
Slide 38: Contact details
Level 10, Suite 1, 100 Wiltam Streat Sydney, NSW 2011, Austoia yaurvehorizonall. com.2u 1461 2.0032 5000, F 481 2 G32 6050