Horizon Oil Limited · ASX:HZN
Horizon Oil — OTCQB Virtual Investor Conference 2022
18 slides from Horizon Oil's conference presentation, Aug 5, 2022
Slide 1: Horizon Oil OTCQB Investor Presentation ASX Announcement
Level 6, 134 William Street P +61 2 9332 5000 Woolloomooloo NSW 2011 F +61 2 9332 5050 Australia horizonoil.com.au 4 August 2022 HORIZON OIL LIMITED The Manager Company Announcements OTCQB INVESTOR PRESENTATION ASX Limited Exchange Centre 20 Bridge Street Attached please find Horizon’s presentation
Slide 2: Horizon Oil OTCQB Webcast Virtual Investor Conference
HORIZON OIL OTCQB WEBCAST VIRTUAL INVESTOR CONFERENCE AUGUST 2022 OCTQB WEBCAST - VIRTUAL INVESTOR CONFERENCE Block 22/12: WZ6-12 platform
Slide 3: Compliance Statement
COMPLIANCE STATEMENT Disclaimer Reserves Disclosure • Statements contained in this material, particularly those regarding the possible or assumed future • Unless otherwise stated, all petroleum reserves and resource estimates refer to those performance, costs, dividends, returns, production levels o
Slide 4: Horizon's Portfolio
HORIZON’S PORTFOLIO Block 22/12, Beibu Gulf, China, 26.95% production / 55% exploration • CNOOC (51% - Operator) • Roc Oil (19.6%) • Majuko Corp. (2.45%) Mari, New Zealand, 26% • OMV (69% - Operator)* • Cue Energy (5%) *Sale to Jadestone Energy pending NZ Regulatory approvals OCTQB WEBCAST - VIRTUAL
Slide 5: Horizon Snapshot
HORIZON SNAPSHOT • Two oil producing assets - Block 22/12, Beibu Gulf, China (26.95%); Maari Project, New Zealand (26%) • Horizon is a low-cost oil producer, highly leveraged to the oil price and generating strong cash flows • We have a strong balance sheet (net cash over US$40m), and a history of r
Slide 6: Horizon Snapshot
HORIZON SNAPSHOT ASX: HZN OTCQB: HZNFF Shares on issue: 1.6 billion Market Cap. A$220 million @ 14 cents $0.18 18 HZN vs Brent Oil vs Energy Index $0.16 16 $0.14 14 $0.12 12 $0.10 10 $0.08 8 $0.06 6 $0.04 4 $0.02 2 $- 0 Dec 2021 Apr 2022 Aug 2021 Jun 2022 Oct 2021 Mar 2022 Nov 2021 Jan 2022 Jul 2021
Slide 7: FY22 Financial and Commercial Highlights
FY22 FINANCIAL AND COMMERCIAL HIGHLIGHTS LOW COST, CASH GENERATIVE OIL PRODUCER REVENUE2,3 (US$’000) 50,000 150 • Robust production & sales volumes – 1.3 million barrels produced and 1.2 million barrels sold in FY22 40,000 120 15,096 • Revenue growth – Revenue increased 70% during FY22 to US$108 US$
Slide 8: FY22 Operational and ESG Highlights
FY22 OPERATIONAL AND ESG HIGHLIGHTS Operational ESG • WZ12-8E project - oil from six wells started in Q2 • Strong safety record below industry benchmarks CY2022, 18 months after FID • Infill wells in Block 22/12 in ‘21 added 2,200 bopd • Zero tolerance policy on bribery and other forms of (gross ini
Slide 9: Block 22/12: Reliable, High Margin Production
BLOCK 22/12: RELIABLE, HIGH MARGIN PRODUCTION • Production is currently ~15,000 bopd (gross) from 25 wells across 8 discrete fields • Production rates are maintained through a combination of near-field drilling, increased water handling and production optimisation via well workovers and continually
Slide 10: Block 22/12 Overview
2021 HALF YEAR RESULTS 24 AUGUST 2021 BLOCK 22/12 OVERVIEW Export to Weizhou WZ 6-12 North Terminal WZ 6-12 Mid WZ 6-12 South WZ 6-12 Sliver CNOOC facilities WZ 12-8 East Jiaowei WZ 12-8 East Weizhou WZ 12-8 West WZ 12-8 Mid OCTQB WEBCAST - VIRTUAL INVESTOR CONFERENCE OTCQB WEBCAST - VIRTUAL INVESTO
Slide 11: Block 22/12: WZ12-8E Development Project
BLOCK 22/12: WZ12-8E DEVELOPMENT PROJECT • Oil production forecast to average ~4,000bopd (gross) in the first year of production • HZN net 2P reserves estimate 0.6mmbbls (gross ~2.3 mmbbls) WZ12-8E WHP • Success in this first phase may lead to future additional infill wells Export pipeline • Platfor
Slide 12: Block 22/12: Infill, Appraisal and Exploration Opportunities
BLOCK 22/12: INFILL, APPRAISAL AND EXPLORATION OPPORTUNITIES • The JV has a strong portfolio of North infill, appraisal and infrastructure led near-field exploration M3 opportunities, two of which are proposed for drilling by CYE 20221 • Success in these opportunities will help to extend plateau pro
Slide 13: Block 22/12: History and Indicative Forecast
BLOCK 22/12: HISTORY AND INDICATIVE FORECAST 20,000 History Forecast WZ12-8E 2P undeveloped reserves: 2.3 MMbbl ODP1 forecast 15,000 recovery 16.2 MMbbl Gross oil rate (bopd) Indicative future activities est. net Capex $5-10 p.a. 10,000 2P developed reserves at 30-June-2021: 11.4 MMbbl end of PSC 5,
Slide 14: Maari: Stable Performance
MAARI: STABLE PERFORMANCE Cashflow Production Field Life Costs • Maari/Manaia generates • CY2022 production • Production license and 2P • Cash operating costs for approximately 30% of impacted by COVID led reserves forecast to end of FY2022 of $28/bbl produced Horizon operating cashflow deferrals of
Slide 15: Maari History and Indicative Forecast
MAARI HISTORY AND INDICATIVE FORECAST 30,000 History Forecast Note that all data on this slide (production and recovery) is gross 25,000 20,000 Oil Rate (bopd) Indicative future activities Indicative future activities in the current licence beyond the current licence 15,000 period1 period1 2P develo
Slide 16: 2022 Operations Activity
2022 OPERATIONS ACTIVITY 2022 Q1 Q2 Q3 Q4 Successfully completed, BLOCK 22/12 WZ12-8 EAST DRILLING (x8) FIRST OIL all production wells online BLOCK 22/12 WZ6-12 WORKOVERS (x5) In progress AND APPRAISAL DRILLING (x1) A final decision on this BLOCK 22/12 WZ6-12 INFILL DRILLING (x1)1 opportunity will
Slide 17: Investment Highlights
INVESTMENT HIGHLIGHTS • 26.95% Block 22/12, Beibu Gulf, China Material positions in • 26% Maari Project, New Zealand excellent producing assets • JV’s - IOC’s with decades of relevant in-country experience Right sized organization • Focused active management approach and a small, high calibre, hands
Slide 18: For More Information Please Contact Us
Maari well head platform FOR MORE INFORMATION PLEASE CONTACT US RICHARD BEAMENT, CEO Horizon Oil Limited +61 2 9332 5000 Level 6, 134 William Street info@horizonoil.com.au Woolloomooloo NSW 2011 Australia horizonoil.com.au OCTQB WEBCAST - VIRTUAL INVESTOR CONFERENCE