Horizon Oil Limited · ASX:HZN
Horizon Oil — Wilson HTM Oil & Gas Conference 2009
26 slides from Horizon Oil's conference presentation, Apr 30, 2009
Slide 1: ASX cover letter: Horizon Oil presentation at Wilson HTM Conference
For personal use only 30 April 2009 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 HORIZON OIL (HZN) PRESENTATION AT WILSON HTM OIL & GAS CONFERENCE Please find attached the presentation to be made today by Horizon Oil’s Chief Ex
Slide 2: Wilson HTM Oil & Gas Conference April 2009
HORIZON OIL LIMITED ABN 51 009 799 455 Wilson HTM For personal use only Oil & Gas Conference April 2009 “Dealing with the Threats and Opportunities” This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature o
Slide 3: "New World" Threats
“New World” Threats For personal use only § Weak global economy through at least 2011 § Banks unsettled and debt markets tight § Equity market tight and potentially dilutive, especially for smaller resource companies § Investors have less appetite for risk § Oil price crunched and perhaps returning
Slide 4: "Supply Destruction"
“Supply Destruction” For personal use only Page 3
Slide 5: "New World" Company Design
“New World” Company Design For personal use only § Minimal reliance on debt and equity capital markets to fund growth § Focus on developing existing reserves and resources § Diversify gas commercialisation approach § Look for under-priced acquisition opportunities § Take a cautious view on explorati
Slide 6: Investment Proposition
Investment Proposition For personal use only § Distinct southeast Asian geographic focus § Strong, long-lived cashflows from Maari field, offshore New Zealand, to fund future capital program § Substantial inventory of discovered reserves and resources to bring into production with minimal exposure t
Slide 7: Asset Location – Focus on SE Asia
Asset Location – Focus on SE Asia For personal use only Productive fairways, mature operating environment … …strong demand for oil and gas Page 6
Slide 8: Horizon Oil Statistics
Horizon Oil Statistics For personal use only SHARE PRICE HISTORY 50,000,000 $0.60 45,000,000 $0.50 40,000,000 35,000,000 TRADING STATISTICS $0.40 30,000,000 Volume This month Price 25,000,000 $0.30 Last $0.120 20,000,000 High $0.145 $0.20 15,000,000 Low $0.110 10,000,000 Volume 37,644,704 $0.10 5,00
Slide 9: Horizon Oil Board and Management
Horizon Oil Board and Management For personal use only NON-EXECUTIVE RESPONSIBILITIES EXPERIENCE DIRECTORS Fraser Ainsworth AM Chairman of Board, Chairman of Remuneration, 28 years in CSR’s resource & energy business, former MD of Delhi, former MD of B.COMM, FAICD, FCPA Nomination and Disclosure Com
Slide 10: Reserves and Resources
Reserves and Resources For personal use only Net recoverable in millions of barrels of oil equivalent RESERVES RESOURCES Maari (other zones + Manaia) PRL 4 (Stanley) 4 mmbo PRL 5 9 mmbo (Elevala/Ketu) Block 22/12 13 mmbo Wei 12-8 area 4 mmbo Maari 6 mmbo PRL 5 Block 22/12 PRL 4 (Stanley) (Elevala/Ke
Slide 11: Net Production Forecast
Net Production Forecast For personal use only Maari on production in February 2009… 18000 16000 14000 B 12000 O 10000 E 8000 P D 6000 4000 2000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Maari Maari Other Zones 22/12 Wei 6-12 22/12 Wei 12-8 area Stanley condensate Stanley gas New Business …
Slide 12: Maari Development – New Zealand
Maari Development – New Zealand For personal use only Installation complete and production start-up of a 60 mmbo oilfield… Joint Venture: HZN 10% OMV 69% (Op) Todd 16% CUE 5% …with 40 mmbo upside potential Page 11
Slide 13: Maari Development – Features
Maari Development – Features For personal use only § Production permit through December 2027 with ability to extend § Design plateau production rate 35,000 bopd § Wellhead platform allows well intervention without need to import a rig § Workover rig and coiled tubing unit permanently on platform or
Slide 14: Maari Reserves and Upside Potential
Maari Reserves and Upside Potential For personal use only Zone Gross 2P reserves Net 2P reserves (mmbo) (mmbo) Maari Moki 60 6 Gross unrisked mean resource Net unrisked mean resource potential potential (mmbo) (mmbo) Maari M2A Sands 12 1 Manaia 25 3 Total 97 10 Page 13
Slide 15: Maari Field Operating Cashflow
Maari Field Operating Cashflow For personal use only § Plateau EBITDA net to HZN at US$50 oil: US$4.5 million per month at US$75 oil: US$7 million per month § Cumulative production after 2 years of 20 mmbo, generating EBITDA net to HZN at US$50 oil: US$81 million at US$75 oil: US$131 million § Cumul
Slide 16: Maari Update
Maari Update For personal use only § Development drilling program with Ensco 107 jack-up rig began 11 November 2008. Program is to batch drill 3 oil production wells, followed by 3 water injectors and 2 oil production wells § Wellhead platform and FPSO operational, connecting flow-lines and umbilica
Slide 17: China 22/12 – Discoveries and Prospects
China 22/12 – Discoveries and Prospects For personal use only 194 mmbbl oil-in-place discovered... Joint Venture: HZN 30% ROC 40% (Op) Petsec 25% FAR 5% …development planning underway Page 16
Slide 18: Block 22/12 Development Planning
Block 22/12 Development Planning For personal use only Phased development concept § Philosophy is to utilise CNOOC facilities and manpower where possible § Unmanned wellhead platform at Wei 6-12S location, tied back to CNOOC Wei 12-1 processing platform § Oil export via CNOOC pipeline to Weizhou Isl
Slide 19: Phased Development Concept – Export via CNOOC System
Phased Development Concept – Export via CNOOC System For personal use only Page 18
Slide 20: Papua New Guinea
Papua New Guinea Possible recoverable resources of 1-2 tcf gas and 40-70 mmb condensate… For personal use only …development options emerging Page 19
Slide 21: Western Province Play – Papua New Guinea
Western Province Play – Papua New Guinea For personal use only § Significant resource position:- • 100% interest in PRL 4 (Stanley gas / condensate discovery) • 49.65% interest in PRL 5 (Elevala and Ketu gas / condensate discoveries § Fields located in relatively flat and accessible foreland area §
Slide 22: Funding Position – Near Term
Funding Position – Near Term Funding requirements For personal use only Operations § Remaining Maari development costs funded by project revenues § Pre-development expenditure Block 22/12 and Stanley and other costs ~ US$4 million Corporate § US$19.3 million BOSI corporate facility repayable 30 June
Slide 23: Funding Position – Medium Term
Funding Position – Medium Term For personal use only Funding requirements Operations § China Block 22/12 development at 14.7% interest ~US$45 million net § PNG Stanley development at 50% interest ~US$65 million net § Unspecified overhead, exploration and development costs ~US$20 million net Corporat
Slide 24: Valuation of Key Assets
Valuation of Key Assets For personal use only Assumptions - effective date 1/1/09, US$50 / barrel oil price flat, certified 2P reserves / resources, independently sourced capex and opex profiles NPV10 (US$ million) Maari (Moki zone) 85 PNG (Stanley condensate) 88 China (Wei 6-12 and 12-8W) 41 Total
Slide 25: Investment Highlights
Investment Highlights For personal use only Reserves and Resources § Strong position-: 14 mmbo 2P reserves (all oil) and resources of 26 mmbo + 486 bcf gas New Zealand § Maari on production and ramping up to 3,500 bopd net to HZN; generates US$4.5 million per month net cash flow before interest and
Slide 26: For personal use only
Please visit the Horizon Oil website www.horizonoil.com.au to see:- Detailed Investor Presentation For personal use only Latest Quarterly Report Analyst reports on HZN Level 7, 134 William St, Woolloomooloo NSW 2011 Tel: +612 9332 5000 Fax: +612 9335 5050 exploration@horizonoil.com.au Page 25