Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (September 2014)
39 slides from Hibiscus Petroleum Bhd's investor presentation, September 2014
Slide 1: Extracting Value
Extracting Value Before proceeding to read further, please refer to the Disclaimer on pages 38-39 of this presentation. 1
Slide 2: Table of Contents
Table of Contents 1. Resources and Reserves 2. Hibiscus Strategy 3. Planning for Success 4. Value Creation a) Exploration b) Development c) Production 2
Slide 3: Introduction to HPB
Introduction to HPB Market Capitalisation: MYR 1.37 bil (USD 433 mil) Ordinary Shares: 891.6 million 12 month Trading Range: MYR 1.37 – MYR 2.68 Average Daily Volume: 897, 146 Debt: Nil Listing: Main Board, Bursa Malaysia 3
Slide 4: Resources and Reserves
Resources and Reserves 2P + 2C Oil Reserves (MMbbls)* Prospective Resources (MMbbls)* 43.0 64.8 6.9 4.3 246.4 8.0 1,135.0 Australia - Sea Lion: 63% (Concession Operator) Australia - West Seahorse : 100%** (Concession Operator) RAK - Dahan: 21% (Concession Operator) JPDA - Kitan: 25%*** Norway: 2-8%
Slide 5: Resources and Reserves
Resources and Reserves 2P+ 2C Oil Reserves MMbbls JPDA - Kitan 4.31 Australia - West Seahorse 8.02 Prospective Resources MMbbls3 Australia – Sea Lion 6.9 RAK - Dahan 43.0 Norway 64.8 Sharjah – Zubara 246.4 Oman – Masirah Block 50 1135.0 All figures represent resource net to Hibiscus 1. Based on Wood
Slide 6: Mission
Achieving Scale To be a Respected Independent E&P Company 2016 100 MMbbls 2P/2C Reserves Mission 10,000 bbls/day production Advancing assets from Exploration to Production 6
Slide 7: Management Team
Management Team Dr Kenneth Pereira (Managing Director) • Former Managing Director of Interlink Petroleum Ltd, a Mumbai-listed E&P company • Chief Operating Officer of SapuraCrest Petroleum Berhad (1997 – 2008) 200 Joyce Vasudevan (Chief Financial Officer) • Former Head of Strategic & Operations Plan
Slide 8: Hibiscus Strategy
Hibiscus Strategy PROSPECTIVE CONTINGENT RESOURCES RESOURCES RESERVES DECREASING RISK Highest value creation takes place in the Cash-flow generated from production $/boe, risked exploration phase funds dividends, equity for development when discoveries are made and high impact exploration which in t
Slide 9: Competitive Advantage
Competitive Advantage Virtual Drilling Cost effective and overlay on accelerated conventional development methodology solution – ‘Plan for Success’ DEVELOPMENT EXPLORATION & PRODUCTION 9
Slide 10: Plan for Success
Plan for Success • Planning for Success offers a compelling RISK / REWARD ratio: – Planning for Success requires a very SMALL INVESTMENT – The REWARD is potentially 12 – 18 months earlier First Oil • Large Operators have internal processes that prevent such an approach • Small Operators have the abi
Slide 11: Exploration De-risking
Exploration De-risking Identification of prospects Defining Virtual Choosing well Drilling location While the bulk of G&G takes place Purchasing of Conventional after new seismic is acquired, the long lead items G&G process commences even before the & logistics concession is leased and is carried re
Slide 12: Work Programmes
Work Programmes NORWAY 2-9% 13 Licenses Stake Exploration 1H 2015 – Drilling MIDDLE EAST one well Oman Block 50 22% Development Stake Q3 2015 – Extended Well Test Sharjah Offshore 35% Exploration Stake JPDA 25% Q3 2015 - Drilling Kitan Oil Field Stake Production *Once completed 10,000 bbls/day avera
Slide 13: Production
@@ Petroieu m PRODUCTION
Slide 14: Kitan Oil Field
Kitan Oil Field Asset Name: Kitan Oil Field (JPDA 06–105)* Asset Type: Production Country: Joint Petroleum Development Authority (Australia – Timor Leste) Acquisition Date: June 2014 Water Depth/ Size: Up to 330m/ 85 km2 Work Completed: • Field developed with FPSO and three subsea wells • Approval o
Slide 15: Production Value: Kitan Oil Field
Production Value KITAN OIL FIELD DRILLING in Q3 2014 Cost Control Kitan-3 measures 4.3 mmbbl 2P + 2C Reserves implemented Sidetrack USD 40m* USD 36 m* Initial Acquisition Value USD 18 m GLAS DOWR FPSO * HPB estimates 1 2 3 15
Slide 16: Development
@@ Petroieu m DEVELOPMENT
Slide 17: West Seahorse Field
West Seahorse Field Asset Name: West Seahorse (VIC/L31) Asset Type: Development Country: Australia Acquisition Date: January 2013 Water Depth/ Size: Up to 150m/ 460km2 Participating Interest: 100%* (Concession operator) Discovery Date: September 1981 Timing for FID: October 2014 Work Completed: • Ob
Slide 18: Development Value: West Seahorse Field
Development Value WEST SEAHORSE FIELD DRILLING in Q4 2015 First Oil 8.0 mmbbl 2P + 2C Reserves, USD 82m* Production License and Field MOPU Development Plan approval Initial Acquisition USD 40m* Value USD 36 m WEST SEAHORSE DEVELOPMENT PLAN 1 2 3 * HPB estimates 18
Slide 19: Oman Story
Oman Story Asset Name: Oman Block 50 Asset Type: Development Country: Oman Effective Date: August 2011 Water Depth/ Size: Up to 150m/ 16,900km2 Participating Interest: 22% (through Lime) Discovery Date: March 2014 (1st offshore discovery off east of Oman) Work Completed: • Drilling of two exploratio
Slide 20: Drilling Review
Drilling Review During a 48-hour test, hydrocarbons were flowed to the surface and the well achieved light oil flow rate of up to 3000 stock tank barrels per day with no water production 20
Slide 21: Exploration
@@ Petroieu m EXPLORATION
Slide 22: Sharjah Offshore
Sharjah Offshore Asset Name: Sharjah Offshore Asset Type: Exploration Country: United Arab Emirates Acquisition Date: June 2011 Water Depth/ Size: Up to 350 m/ 1600km2 Work Completed: • Seismic Acquisition • Mapped drill-ready prospects Upcoming Programme: Drilling of one exploration well in Q3 2015
Slide 23: Exploration Value Creation: Sharjah Offshore
Exploration Value Creation SHARJAH OFFSHORE Discovery DRILLING in Q3 2015 increases GCOS and valuations of Discovery other prospects Made USD 40m** Unrisked Recoverable Exploration Trap GCOS Prospective Resources (mmbbl) Miocene-Pliocene Flower 11% Structures 20 Miocene Channels and clinoform 11% 17
Slide 24: HiRex
HiRex • Formed in March 2013 Undiscovered Resources No Basin • A 41% owned joint venture between Hibiscus Oil Gas (MMBO) (BCFG) Petroleum and Rex International Holdings 1 Central Burma 1,808 12,672 • Primarily focused on high-impact exploration and marginal field development in Asia-Pacific and 2 Ir
Slide 25: Forward Strategy
Forward Strategy Demonstrate good Unearth full value execution of of petroleum upcoming projects system including West discovered in Seahorse and Oman Sharjah A Respected Delivering Independent on Promises E&P company HiRex: To Capital deliver on raising for objectives of funding of acquiring at fut
Slide 26: Forward Strategy
Forward Strategy 2014 2015 Stage Block A S O N D J F M A M J J A S O N D Sharjah Exploration Sea Lion Norway Oman Block 50 Development West Seahorse Production Kitan 26
Slide 27: Project funding options
Project funding options (Figures in USD mm) HPB’s Equity* Debt* Stage Block Estimated Cash* Description Financing Financing Expenditure* Sharjah 2 2 Drilling three exploration wells in VIC/P57 17 17 2015: Sharjah Exploration (50% farm out) , Lime 5 3 2 Norway and Norway Australia Oman - Extended Wel
Slide 28: Funding Options
Funding Options Successful 50% farm + out of VIC/L31 Utilisation of Development of Potential New Funds Existing Assets Opportunities US 48 million Up to USD 65 million 28
Slide 29: Development of Existing Assets
Development of Existing Assets (Figures in USD mm) HPB’s Estimated Equity* Debt* Stage Block Cash* Description Expenditure* Financing Financing Drilling three exploration wells Sharjah 2 2 in 2015: Sharjah (50% farm out) , Norway and Australia Exploration Sea Lion 17 17 Lime Norway 5 3 2 Extended We
Slide 30: New Opportunities
New Opportunities Examples of project types being explored Up to USD 65 million • Development of proven resources Opportunity 1 • 30% interest and operatorship • Field located in Malaysia • Acquisition of producing asset with exploration upside • Seller looking to divest from the country where HPB h
Slide 31: Appendix
HIBISCU Appendix
Slide 32: Capital Structure
Capital Structure Capital Structure : 31 August 2014 • Non-Independent Directors and Management hold largest block (18.8%) Price Total Number Mkt Cap • Diversified shareholder base (RM) RM’000 • Most large shareholders are involved in or familiar with the oil and gas Total Number of industry 1.54 89
Slide 33: Rex Technology: Geographical Coverage
Rex Technology: Geographical Coverage EXCLUSIVE USE: ON A PROJECT BASIS: FIRST RIGHT OF REFUSAL: (through Lime) (through Lime) (through HiRex JV) Iran Qatar Norway Malaysia Australia New Jordan Syria Thailand Zealand Kuwait Turkey Indonesia Philippines Iraq Yemen Myanmar Brunei Papua New Lebanon Pal
Slide 34: Rex Virtual Drilling
Rex Virtual Drilling Conventional Seismic Interpretation Rex Virtual Drilling Interpretation Risk Risk Factor Conventional Rex VD Risking Category Principle P Trap Geometry 0.60 0.95 P Trap • An advanced seismic resonance evaluation P Seal 0.80 0.99 scheme P Reservoir • Able to pinpoint exact locati
Slide 35: Range of Certainty
Petroleum Economics Increasing Commerciality Low High Undiscovered - Discovered - Prospective Contingent Discovered - High Resources Resources Reserves High Estimate 3C 3P Range of Certainty Best Estimate 2C 2P Low Estimate 1C 1P Low Source: Society of Petroleum Engineers and World Petroleum Council
Slide 36: Hibiscus compared to Asian listed peers
Hibiscus compared to Asian listed peers – Hibiscus is well positioned compared Market capitalisation (US$m)—as at 17 July 2014 to Asian mid-cap oil and gas peers 1,018 1,200 – Balanced portfolio and an inventory 1,000 661 569 800 of 10.8mmboe of 2P reserves across 461 600 351 307 229 400 multiple as
Slide 37: Thank You
@@ Petroieu m THANK YOU
Slide 38: Disclaimer
Disclaimer This presentation has been prepared by Hibiscus Petroleum Berhad (the “Company”) solely for use at a presentation to be made as of this date and may not be used by any other party or for any other purpose. By attending the meeting where the presentation is made, or by reading the presenta
Slide 39: Disclaimer (continued)
This presentation is made to and directed only at (i) persons outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth individuals, and other persons t
Hibiscus Petroleum Berhad — Investor Presentation (September 2014) on 6ix