Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (November 2021)
33 slides from Horizon Oil's shareholder meeting presentation, Nov 19, 2021
Slide 1: Horizon – Annual General Meeting 2021
Level 6, 134 William Street P +61 2 9332 5000 Woolloomooloo NSW 2011 F +61 2 9332 5050 Australia horizonoil.com.au For personal use only 19 November 2021 HORIZON – ANNUAL GENERAL MEETING 2021 The Manager Attached are copies of the following documents related to the Annual General Company Announcemen
Slide 2: Chairman's Address – Mike Harding
Chairman’s Address – Mike Harding Ladies and Gentlemen, For personal use only From a very uncertain future with oil prices around US$45/bbl and a year with frequent and long periods of lockdowns due to COVID, Horizon posted a strong end to the financial year. Given the strengthened balance sheet and
Slide 3: Chairman's Address (continued)
We welcomed Nigel Burgess to the Board in July this year. Nigel is a nominee of Samuel Terry who now own 19.9% of Horizon. Nigel, together with Sandra Birkensleigh are seeking re-election today, each will make a short speech to seek your For personal use only support. Both candidates are unanimously
Slide 4: Chief Executive Officer's Report – Chris Hodge
Chief Executive Officer’s Report – Chris Hodge Thank you, Mike. For personal use only Slide 1 - Our Strategy Our strategy is simple: Firstly we seek to maximise free cashflow Secondly, we intend to make further distributions to shareholders when it is prudent to do so. And thirdly, we will consider
Slide 5: CEO Report: Sustainability
A “right sized” focus on Sustainability is important for Horizon for banking relations, some institutional investors and simply because it is the right thing to do. We break Sustainability down into our 4 priority areas - HSE, Governance, employees and communities, and climate change. For personal u
Slide 6: CEO Report: China production
In this presentation, I will give some examples of the technical work we are doing to continue this process. Each year finding suitable opportunities within the current asset base gets a little bit harder, a bit more subtle, and the prize gets incrementally smaller, but by working collaboratively wi
Slide 7: CEO Report: WZ12-8E development
The development includes a self-installing processing and wellhead platform and an export pipeline tied back to the existing WZ12-8W platform. A general point to help in understanding the special nature of the WZ12-8E field. For personal use only Both the map and diagram show the WZ12-8E Jiaowei oil
Slide 8: CEO Report: New Zealand reservoir performance
Slide 14 - New Zealand: Stable reservoir performance Maari continues to be an important asset for Horizon generating approximately 30% of Horizon’s cashflow. Importantly, over the past few years the production decline rate has been arrested through continued water injection and well optimization. Fo
Slide 9: CEO Report: Maari forecast and operations activity
Slide 17 - Maari History and Indicative Forecast This slide shows the Maari history and forecast. Note that all numbers are consistent with the Horizon reserves statement and are gross volumes. For personal use only The indicative forecast clearly illustrates the importance of the current license ex
Slide 10: CEO Report: Costs, distributions and new business
months to 12 employees driving annualised cost savings amounting to ~$1.5 million. As part of the restructuring, the Company’s Key Management Personnel have been cut in half to 2. We will continue to look to optimise our cost structure but ensure that we have the necessary resources to extract the s
Slide 11: Annual General Meeting November 2021
For personal use only ANNUAL GENERAL MEETING 19 NOVEMBER 2021 INVESTOR PRESENTATION
Slide 12: Chris Hodge, MD & CEO
CHRIS HODGE For personal use only MD & CEO INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION
Slide 13: Our Strategy
OUR STRATEGY For personal use only Further Distributions to Maximise Free Invest in New Business Shareholders Cashflow if exceptional when prudent to do so INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 12
Slide 14: Financial and Commercial Highlights – FY21
FINANCIAL AND COMMERCIAL HIGHLIGHTS – FY21 For personal use only Production and financial metrics were within or exceeded FY21 guidance range (USD unless specified) Much improved oil price Corporate costs reduced Production 1.33 MMbbls $63.6 million revenue EBITDAX $36.4 million Sales 1.27 MMbbls $2
Slide 15: Operations
OPERATIONS For personal use only The priority has been to increase production, reduce costs and maximise returns from the producing assets No loss of containment, strong 10 workovers restored production WZ12-8E project sanctioned at safety record across both assets time of low oil price Greenhouse G
Slide 16: Sustainability (Our ESG Priority Areas)
SUSTAINABILITY (OUR ESG PRIORITY AREAS) For personal use only Right sized for Horizon, and meaningful to our stakeholders and the wider community HSE Governance People – employees Climate Change and communities • Work closely with • Zero tolerance policy on • We support our team to • Our priority is
Slide 17: Share Price Performance – July 2020 to Present
SHARE PRICE PERFORMANCE – JULY 2020 TO PRESENT For personal use only $0.16 45.00 Capital return HZN vs Brent Oil vs Energy Index of 3cps $0.14 40.00 35.00 $0.12 30.00 $0.10 25.00 $0.08 20.00 $0.06 15.00 $0.04 10.00 $0.02 5.00 $0.00 - Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr
Slide 18: The Producing Assets
THE PRODUCING ASSETS China, Beibu Gulf, 26.95% production / 55% exploration For personal use only • CNOOC (51% - Operator) • Roc Oil (19.6%) • Majuko Corp. (2.45%) New Zealand, Maari, 26% • OMV (69% - Operator)* • Cue Energy (5%) * Sale to Jadestone Energy pending NZ Regulatory approvals INVESTOR PR
Slide 19: China Block 22/12: Reliable, High Margin Production
CHINA BLOCK 22/12: RELIABLE, HIGH MARGIN PRODUCTION For personal use only • Production is currently ~9,900 bopd (gross) from 19 wells across 5 discrete fields • Production rates are maintained through a combination of near-field drilling, increased water handling and production optimisation via well
Slide 20: China Overview
2021 HALF YEAR RESULTS 24 AUGUST 2021 CHINA OVERVIEW For personal use only 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 WZ 12-8 West WZ 12-8 Mid INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 19
Slide 21: Planned WZ6-12 Sliver Infill Well
PLANNED WZ6-12 SLIVER INFILL WELL* • The Sliver infill well is proposed for 2022* and is estimated For personal use only to recover ~0.5mmbbl gross (risked) WZ6-12 The A7 and A6 wells produce Platform • Planned to intersect a mix of discovered (Contingent from only some of the 10 Resources) and undi
Slide 22: China: Appraisal & Exploration Opportunities
CHINA: APPRAISAL & EXPLORATION OPPORTUNITIES For personal use only • The JV has a strong portfolio of infill, appraisal and near- M3 field exploration opportunities, four of which are proposed for Sliver drilling in 2022* • Success in these opportunities will help to extend plateau production into t
Slide 23: China: WZ12-8E Development Project – Summary
CHINA: WZ12-8E DEVELOPMENT PROJECT – SUMMARY • Construction well advanced For personal use only • Horizon’s share of total capital expenditure ~US$20 million at current oil prices • Development costs are phased through 2021 and 2022 and are to be funded from WZ12-8E WHP Horizon’s existing cash reser
Slide 24: China: WZ12-8E Development Project – Status
CHINA: WZ12-8E DEVELOPMENT PROJECT - STATUS Self-installing WZ12- For personal use only 8E platform during construction INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 23
Slide 25: China: History and Indicative Forecast
CHINA: HISTORY AND INDICATIVE FORECAST History Forecast For personal use only 20,000 WZ12-8E 2P undeveloped reserves: 2.3 MMbbl ODP* forecast 15,000 recovery 16.2 MMbbl Gross oil rate (bopd) Indicative future activities est. net Capex $5-10 p.a. 10,000 2P developed reserves at 30-June-2021: 11.4 MMb
Slide 26: New Zealand: Stable Reservoir Performance
NEW ZEALAND: STABLE RESERVOIR PERFORMANCE For personal use only • Production decline rate arrested through continued water injection and well optimisation • Workovers of MR7 and MR9 in Q4 CY2020 successfully restored production, workover of MR8A recently completed and cleaning up • MR6A workover com
Slide 27: Maari / Manaia Summary Map and Cross-Section
MAARI / MANAIA SUMMARY MAP AND CROSS-SECTION For personal use only • Maari Moki • Maari Mangahewa • Maari M2A Wellhead platform & FPSO • Manaia Mangahewa INVESTOR PRESENTATION ANNUAL GENERAL MEETING PRESENTATION 26
Slide 28: Maari – The Way Forward
MAARI - THE WAY FORWARD For personal use only OMV sale to Jadestone delayed – but in the meantime, OMV continues to operate the field effectively Opportunities Jadestone Field Life Extension Decommissioning • “There are significant • Sale announcement • Work streams initiated • NZ Government propose
Slide 29: Maari History and Indicative Forecast
MAARI HISTORY AND INDICATIVE FORECAST History Forecast For personal use only 30,000 Note that all data on this slide (production and recovery) is gross 25,000 20,000 Oil Rate (bopd) Indicative future Indicative future activities activities in the current beyond the current licence 15,000 licence per
Slide 30: 2022 Operations Activity
2022 OPERATIONS ACTIVITY* For personal use only 2022 Estimated net cost Q1 Q2 Q3 Q4 range (US$M) CHINA WZ12-8 EAST DRILLING (x8) FIRST OIL 12-15 CHINA WZ12-8 SE NEAR-FIELD 2-3 EXPLORATION (x1)* CHINA WZ6-12 WORKOVERS (x3)* 1-2 CHINA WZ6-12 INFILL AND OTHER 3-4 NEAR-FIELD DRILLING (x2)* MAARI LIFE EX
Slide 31: 2022 Summary Activity Outlook
2022 SUMMARY ACTIVITY OUTLOOK For personal use only Capitalising on higher oil prices to maximise value China: Delivery of WZ12-8E New Zealand: work with OMV, Maintain ESG commitments, project, safe and successful Jadestone and NZ Gov’t to plan costs, shareholder value drilling operations for the fu
Slide 32: Our Strategy
OUR STRATEGY For personal use only Maximise Free Cashflow* Further Distributions to Invest in New Business Targeting US$25-35 million FY22 Shareholders if exceptional when prudent to do so • WZ12-8E commencement, infill • A$49.4 million already distributed • Strong investment metrics, low wells, pro
Slide 33: For More Information Please Contact Us
For personal use only FOR MORE INFORMATION PLEASE CONTACT US CHRIS HODGE Horizon Oil Limited P +61 2 9332 5000 Level 6, 134 William Street info@horizonoil.com.au Woolloomooloo NSW 2011 Australia horizonoil.com.au INVESTOR PRESENTATION