Horizon Oil Limited · ASX:HZN
Horizon Oil — Investor Presentation (July 2013)
37 slides from Horizon Oil's investor presentation, Jul 31, 2013
Slide 1: Capital Raising Presentation – Underwritten Entitlement Offer
Horizon Oil Limited ABN 51 009 799 455 For personal use only Capital Raising Presentation – Underwritten Entitlement Offer July 2013 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This investor presentation (“Presentation”) ( Presentation ) has been prepared by Horizon Oil Limited (ABN 51 009 799 455) ((“Horizon Horizon Oil”) Oil ). The Presentation has been prepared in relation to an accelerated non-renounceable pro-rata entitlement offer of n
Slide 3: Important Notice and Disclaimer (continued)
Important Notice and Disclaimer (continued) Future performance (continued) For personal use only You are cautioned not to place undue reliance on forward looking statements, opinions and estimates provided in this Presentation as there can be no assurance that actual outcomes will not differ materia
Slide 4: Entitlement Offer – Executive Summary
Entitlement Offer – Executive Summary Horizon Oil Limited (“Horizon Oil”) is raising AUD53.5 million through a fully underwritten one for seven accelerated For personal use only non-renounceable entitlement offer (“Entitlement Offer”) million via the issue of approximately 162 million ordinary sha
Slide 5: Entitlement Offer – Overview
Entitlement Offer – Overview For personal use only The Entitlement Offer is fully underwritten by UBS AG, Australia Branch ("UBS“). RBS Morgans Corporate Limited is acting as Co-manager to the Entitlement Offer. Austral-Asia Energy Pty Ltd ("IMC") has committed to participate in the Entitlemen
Slide 6: Entitlement Offer – Sources and Uses of Funds
Entitlement Offer – Sources and Uses of Funds Sources of funds For personal use only Net proceeds from Entitlement Offer Net production income from Maari and Beibu Gulf fields Principal near-term uses of funds Early works on Stanley field in PRL 4 and continuation of PDL approval process at 50
Slide 7: Entitlement Offer – Timetable
Entitlement Offer – Timetable For personal use only Event Date1 Trading halt 31 July 2013 Institutional Entitlement Offer 31 July 2013 Announcement of outcome under the Institutional Entitlement Offer 1 August 2013 Trading in Horizon Oil shares resumes 1 August 2013 Record Date for the Entitlement O
Slide 8: Significant Recent Achievements
Significant Recent Achievements For personal use only Beibu Gulf fields on stream and Phase I development nearing completion Pre Pre-development development exploration drilling on WZ 6-12 6 12 fields resulted in reserves upgrade of 18% 10 well development drilling program from WZ 6-12 wellhead
Slide 9: Strategic Alliance with Osaka Gas Co. Ltd. Of Japan
Strategic Alliance with Osaka Gas Co. Ltd. Of Japan 60:40 strategic alliance with global gas company to provide funding + valuation + pathway to LNG For personal use only commercialisation Sale of 40% of Horizon Oil’s Oil s interests in PRL 4, 4 PRL 21 and PPL 259 for milestone milestone-based b
Slide 10: Growth in Acreage, Petroleum Resources, Transaction Multiples and Value of PNG Position
Growth in Acreage, Petroleum Resources, Transaction Multiples and Value of Horizon Oil’s PNG Position For personal use only Horizon Oil Talisman to Horizon Oil to Horizon Oil to Transaction to Talisman Mitsubishi Osaka Gas1 Osaka Gas2 Date 15 Sep 09 23 Feb 12 23 May 13 23 May 13 Licences PRLs 4/53 P
Slide 11: Horizon Oil Snapshot
Horizon Oil Snapshot For personal use only Market capitalisation of A$420m at A$0.37 per share on 30 July 2013 (1,135.3m shares) Current net production: Maari/Manaia 900 bopd priced at Brent plus US$5-6 US$5 6 Beibu Gulf 2,700 bopd priced at Brent less US$4 Current EBITDA ~US$8m per month Fo
Slide 12: Upcoming News Flow and Share Price Catalysts
Upcoming News Flow and Share Price Catalysts Timeframe For personal use only Improved production performance from Maari/Manaia fields and progress on Q3 2013 - 2014 appraisal pp drilling g and field upgrade pg Ramp up to peak oil production of Beibu Gulf fields Phase I development Ongoing - Q3 2
Slide 13: Investment Proposition
Investment Proposition Focused southeast Asian/Australasian E&P specialist. specialist For personal use only Strong, long-lived cashflows from Maari/Manaia fields, offshore New Zealand, re-invested to fund future capital program. Low risk, new reserves appraisal drilling and mid-life field upgra
Slide 14: Geographic Focus and Asset Location
Geographic Focus and Asset Location Focus on productive fairways and mature operating areas in SE Asia / Australasia For personal use only Conventional plays with scale and upside - conservative approach to exploration 14
Slide 15: Net Reserves, Contingent Resources and Prospective Resources
Net Reserves1, Contingent Resources1 and Prospective Resources1 as at 30 April 2013, Post Osaka Gas Transaction For personal use only RESERVES CONTINGENT RESOURCES PROSPECTIVE RESOURCES Proven + Probable Proven + Probable Best Estimate PRL 4 (Stanley Liquids)4 Block 22/12 WZ 12- 0..4 mmbo Block 22/1
Slide 16: Forecast Net Production From Reserves + Contingent Resources
Forecast Net Production From Reserves + Contingent Resources as at 30 April 2013, Post Osaka Gas Transaction For personal use only Includes historical production prior to 30 April 2013 Based on proven and probable reserves and contingent resources, estimated in accordance with SPE-PRMS standard Timi
Slide 17: Maari/Manaia Fields – New Zealand
Maari /Manaia Fields – New Zealand For personal use only PMP 38160: Reserves at 1/05/13 (mmbo) HZN 10% (RISC estimate) OMV 69% (Op) Produced 22 Todd 21% Remaining developed 52 CUE 5% Remaining undeveloped 34 17
Slide 18: Maari/Manaia – Key Points
Maari//Manaia – Key Points Maari W llh d platform Wellhead l tf / FPSO d development l t iin 100 m water t d depth th For personal use only Maari Moki zone developed with 5 producer wells and 3 water injectors – field developed on basis of 60 mmbo recoverable reserves; successful appraisal/devel
Slide 19: Maari/Manaia Growth Projects
Maari/Manaia Growth Projects For personal use only Objective to reconfigure water injection scheme, access undeveloped reserves and optimise production 19
Slide 20: Maari/Manaia Upside Potential
Maari /Manaia Upside Potential For personal use only Two wells to be drilled in 2013/14 (Manaia-2 and Maari Deep) to address new reserves - unrisked potential of 20 - 25 mmbo 20
Slide 21: PEP 51313 – New Zealand
PEP 51313 – New Zealand Deep prospect and lead inventory with 163 mmbo exploration potential For personal use only PEP 51313: HZN 21% ((10% Whio)) OMV 30% (Op) Todd 35% CUE 14% Whio-1 to be drilled in Q1 2014 with mean potential of 27 mmbo (operator estimate) 21
Slide 22: Beibu Gulf Fields, China – Development Areas
Beibu Gulf Fields, China – Development Areas For personal use only Block 22/12 Post-CNOOC Back-in: HZN 26.95% CNOOC 51.00% (Op) ROC 19.60% Majuko Corp 2.45% Gross reserves 1P 2P 3P (mmbo) As at 31/12/2011 18.5 24.0 29.4 Additi Additions 44 4.4 43 4.3 74 7.4 As at 31/12/2012 22.9 28.3 36.8 Increase 2
Slide 23: Beibu Gulf Fields – Key Points
Beibu Gulf Fields – Key Points 2 phase development in 40 - 60 m water depth utilising CNOOC platform facilities, export For personal use only pipeline and terminal on Weizhou Island Phase 1 platforms WZ 6-12 and WZ 12-8W connected by pipeline to PUQB utility platform; forecast completion cost wi
Slide 24: Beibu Gulf Fields – Phased Development Scheme
Beibu Gulf Fields – Phased Development Scheme For personal use only 24
Slide 25: WZ 12-8E Early Production Concept – Phase II
WZ 12 12--8E Early Production Concept – Phase II For personal use only WZ 12‐1PUQB Leased L d mobile bil production d ti platform NOED Mobile Production Platform Flexible pipeline Initially up to three production wells Run extended DST or pilot production Drill more wells (4-5) depending o
Slide 26: Papua New Guinea
Papua New Guinea For personal use only Horizon Oil acreage position expanded to ~7,900 sq km, primarily in wet gas “sweet spot” 26
Slide 27: PNG Exploration and Development Program – Key Points
PNG Exploration and Development Program – Key Points For personal use only Commanding 7,900 sq km acreage position in liquids-rich “sweet spot” of foreland area with certified condensate and gas resources of 125 mmboe net, subject to reduction when transaction with Osaka Gas completes Stanley (P
Slide 28: Horizon Oil Acreage and Joint Venture Partners
Horizon Oil Acreage and Joint Venture Partners PRL 4: For personal use only HZN 30% (Op) Osaka Gas 20% Talisman 40% Mitsubishi 10% PRL 21: HZN 27% (Op) Osaka Gas 18% Talisman 32.5% Kina 15% Mitsubishi 7.5% PPL 259: HZN 15% Osaka Gas 10% Eaglewood 65% P3GE 10% PPL 430: HZN 50% (Op) g Eaglewood 50% PP
Slide 29: Tingu Well Site Mid-June 2013
Tingu Well Site Mid- Mid-June 2013 For personal use only Scheduled spud – late August 2013 Mean prospective resources (RISC estimate): - 459 bcf b f gas - 25.6 mmbbl condensate - 14.9 mmbbl LPG included in gas 29
Slide 30: PNG Gas Commercialisation Options
PNG Gas Commercialisation Options P Power generation ti For personal use only – Ok Tedi Mining Limited (OTML) – Frieda River project (if sanctioned) – Local towns and communities in Kiunga – OK Menga – Frieda River corridor – Export to West Papua: Merauke, Jayapura Mid-scale Mid scale LNG ~2-4 2
Slide 31: Risks relating to Horizon Oil
Risks relating to Horizon Oil There are numerous widespread Th id d risks i k associated i t d with ith investing i ti iin any fform off b business i and d the th share h market k t generally. ll ThThere are also l a range off specific ifi risks i k associated i t d with ith Horizon H i Oil’ Oil’s b
Slide 32: Risks relating to Horizon Oil (continued)
Risks relating to Horizon Oil (continued) Security of tenure All licences in which the Company has interests are subject to renewal conditions or are yet to be granted, which will be at the discretion of relevant Ministries in each country. The maintenance of licences, obtaining For personal use onl
Slide 33: Risks relating to Horizon Oil (continued)
Risks relating to Horizon Oil (continued) Failure to make or integrate acquisitions For personal use only Business combinations entail a number of risks including the effective integration of acquisitions (including the realisation of synergies), significant one time write-offs or restructuring char
Slide 34: Risks relating to Horizon Oil (continued)
Risks relating to Horizon Oil (continued) Labour and employment matters For personal use only While the Company has good relations with its employees, these relations may be impacted by changes in the scheme of labour relations which may be introduced by the relevant country governmental authorities
Slide 35: International Entitlement Offer Restrictions
International Entitlement Offer Restrictions International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New( New Shares Shares")) of the Company in any jurisdiction in which it would be unlawful. unlawful New Shares may not be offered or sold in any country
Slide 36: International Entitlement Offer Restrictions (continued)
International Entitlement Offer Restrictions (continued) New Zealand Thi document This d t has h nott been b registered, i t d filed fil d with ith or approvedd by b any New N Zealand Z l d regulatory l t authority th it underd the th Securities S iti Act A t 1978 (New (N Z Zealand). l d) The New Sh
Slide 37: Horizon Oil website and contact details
Please visit the Horizon Oil website www.Horizonoil.com.au to see:- see:- Detailed Investor Presentation Latest Quarterly Report For personal use only Analyst reports on HZN Level 7, 134 William St, The reserve and resource information contained in this announcement is based on information compiled