Horizon Oil Limited · ASX:HZN
Horizon Oil — Investor Presentation (November 2013)
34 slides from Horizon Oil's investor presentation, November 2013
Slide 1: Horizon Oil Limited Investor Presentation November 2013
Horizon Oil Limited ABN 51 009 799 455 Investor Presentation November 2013 This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of the business and no assurance can be given by Horizon Oil Limited that i
Slide 2: Horizon Oil Snapshot
Horizon Oil Snapshot Market capitalisation of A$436m at A$0.335 per share on 1 November 2013 (1,301.2m shares) Current net production: Maari/Manaia 900 bopd priced at Brent plus US$5-6 US$5 6 (prior to shut-in shut in for facility upgrade) Beibu Gulf 4,000 bopd priced at Brent less US$4 Curren
Slide 3: Shareholder Distribution and Trading Statistics
Shareholder Distribution and Trading Statistics SHARE PRICE HISTORY TRADING STATISTICS 3
Slide 4: Geographic Focus and Asset Location
Geographic Focus and Asset Location Focus on productive fairways and mature operating areas in SE Asia / Australasia Conventional plays with scale and upside - conservative approach to exploration 4
Slide 5: Investment Proposition
Investment Proposition Focused southeast Asian/Australasian E&P specialist 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 upgrade program to begin Q3 2013 Beib
Slide 6: Net Reserves, Contingent Resources and Prospective Resources
Net Reserves1, Contingent Resources1 and Prospective Resources1 as at 30 April 2013, Post Osaka Gas Transaction 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 22/12 PMP 38160 PRL 21 (El
Slide 7: Forecast Net Production From Reserves + Contingent Resources
Forecast Net Production From Reserves + Contingent Resources as at 30 April 2013, Post Osaka Gas Transaction Includes historical production prior to 30 April 2013 Based on proven and probable reserves and contingent resources, estimated in accordance with SPE-PRMS standard Timing of new field produc
Slide 8: Significant Recent Achievements
Significant Recent Achievements Beibu Gulf fields on stream and Phase I development nearing completion Pre-development exploration drilling on WZ 6-12 fields resulted in reserves upgrade of 18% p 10 well development drilling gpprogram g from WZ 6-12 wellhead p platform completed p safely, y, ahe
Slide 9: Upcoming News Flow and Share Price Catalysts
Upcoming News Flow and Share Price Catalysts Timeframe 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 2013 Progress on Beib
Slide 10: Maari/Manaia Fields – New Zealand
Maari /Manaia Fields – New Zealand 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 10
Slide 11: Maari/Manaia – Key Points
Maari//Manaia – Key Points Maari Wellhead platform / FPSO development in 100 m water depth Maari Moki zone developed with 5 producer wells and 3 water injectors – field developed on basis off 60 mmbo b recoverable bl reserves; successful f l appraisal/development i l/d l wells ll drilled d ill d
Slide 12: Maari Field Development Assets
Maari Field Development Assets 12
Slide 13: Maari/Manaia Upside Potential
Maari /Manaia Upside Potential Two wells to be drilled in 2013/14 (Manaia-2 and Maari Deep) to address new reserves - unrisked potential of 20 - 25 mmbo 13
Slide 14: Maari/Manaia Growth Projects
Maari/Manaia Growth Projects Objective to reconfigure water injection scheme, access undeveloped reserves and optimise production 14
Slide 15: PEP 51313 – New Zealand
PEP 51313 – New Zealand D Deep prospectt and d llead d inventory i t with ith 163 mmbo b exploration l ti potential t ti l 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) 15
Slide 16: Beibu Gulf Fields, China – Development Areas
Beibu Gulf Fields, China – Development Areas 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 24% 18% 25% 16
Slide 17: Beibu Gulf Fields – Key Points
Beibu Gulf Fields – Key Points 2 phase development in 40 - 60 m water depth utilising CNOOC platform facilities, export 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 within initial US$300m b
Slide 18: Beibu Gulf Fields – Phased Development Scheme
Beibu Gulf Fields – Phased Development Scheme 18
Slide 19: Beibu Gulf Fields Development Construction Progress
Beibu Gulf Fields Development Construction Progress PUQB jacket lift by heavy lift vessel Lanjiang (L) WZ 12-8W platform (R) COSL HYSY 931 jack-up rig drilling over WZ 6 6-12 12 platform (L) PUQB modules being lifted onto platform jacket (R) 19
Slide 20: WZ 12-8E Early Production Concept – Phase II
WZ 12 12--8E Early Production Concept – Phase II WZ 12‐1PUQB Leased L d mobile bil production d i platform l f NOED Mobile Flexible pipeline Production Platform Initially up to three production wells Run extended DST or pilot production Drill more wells (4-5) depending on production perfor
Slide 21: Papua New Guinea
Papua New Guinea Horizon Oil acreage position expanded to ~7,900 sq km, primarily in wet gas “sweet spot” 21
Slide 22: PNG Exploration and Development Program – Key Points
PNG Exploration and Development Program – Key Points 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 (PRL 4) and Elevala/Ketu
Slide 23: Horizon Oil Acreage and Joint Venture Partners
Horizon Oil Acreage and Joint Venture Partners PRL 4: 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% PPLs 372 and 373: HZN 90
Slide 24: Stanley Project Concept
Stanley Project Concept Facilities 2 train, 140 mmscfd gas refrigeration plant Mercury Merc r removal remo al via ia adsorption catalyst catal st beds Gas sales at plant fence, addition gas recycled to enhance liquids recovery 6 inch, 40 km pipeline to transport liquids to Kiunga 60,000 bb
Slide 25: Stanley Production Facility Site
Stanley Production Facility Site 25
Slide 26: Kiunga Base and Condensate Loadout Facility
Kiunga Base and Condensate Loadout Facility 26
Slide 27: PRL 21 (Elevala, Ketu and Tingu) – Development Concept
PRL 21 ((Elevala Elevala,, Ketu and Tingu) Tingu) – Development Concept 27
Slide 28: Elevala-2 Wellsite and Ketu-2 Well Flow test
Elevala--2 Wellsite and Ketu Elevala Ketu--2 Well Flow test 28
Slide 29: Tingu Well Site
Tingu Well Site 12 August 2013 Spudded on 26 August 2013, new gas/condensate discovery; well completed for production and currently being flow-tested Mean prospective resources (RISC estimate): - 459 bcf gas - 25.6 mmbbl condensate - 14.9 mmbbl LPG included in gas 29
Slide 30: Tingu-1 Flow Test with Parker Rig 226
Tingu--1 Flow Test with Parker Rig 226 Tingu 30
Slide 31: PNG Gas Commercialisation Options
PNG Gas Commercialisation Options Power generation – Ok Tedi Mining Limited (OTML) – Frieda River project (if sanctioned) – Local towns and communities in Kiungag – OK Menga g – Frieda River corridor – Export to West Papua: Merauke, Jayapura Mid-scale LNG ~2-4 mtpa Expandable mid scale LNG plant
Slide 32: 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 commercialisation Sale S l off 40% off H Horizon i Oil’ Oil’s iinterests t t iin PRL 4 4, PRL 21 and d PPL 259 ffor milestone-based il t b d consid
Slide 33: Upcoming News Flow and Share Price Catalysts
Upcoming News Flow and Share Price Catalysts Timeframe 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 2013 Progress on Beib
Slide 34: Please visit the Horizon Oil website
Please visit the Horizon Oil website www.Horizonoil.com.au to see:- see:- Detailed Investor Presentation Latest Quarterly Report Analyst reports on HZN Level 7, 134 William St, The reserve and resource information contained in this announcement is based on information compiled by Alan Woolloomooloo