Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (October 2015)
50 slides from Hibiscus Petroleum Bhd's investor presentation, October 2015
Slide 1: Securing Sustainability
Securing Sustainability October 2015 R1 Before proceeding to read further, please refer to the Disclaimer section of this presentation. Hibiscus Petroleum Berhad
Slide 2: Investment Highlights
Investment Highlights • Clear execution strategy for current cycle in the sector • Robust balanced portfolio across exploration, development and production and in geopolitically safe jurisdictions (notably Australia, Norway and the UK) • Acquisition of Anasuria asset generates strong, positive cash
Slide 3: Demand/Supply Balance
Demand/Supply Balance mb/d Demand/Supply Balance until 4Q16* mb/d Oil Market Report, 11 September 2015, International Energy Agency 2 Hibiscus Petroleum Berhad
Slide 4: Section 1: Introduction
Section 1 Introduction 3
Slide 5: About Us
About Us HIBISCUS SOUND BUSINESS ETHICS Committed to high standards of corporate governance and building a business based on a PETROLEUM strong technical and commercial foundation. IS MALAYSIA’S TOWARDS A BALANCED PORTFOLIO OF ASSETS Rapidly aggregated production, development and FIRST LISTED INDEPE
Slide 6: Vision and Mission
Vision and Mission Creating a sustainable and growing business To be a Respected Vision Independent E&P Company 2011-2016 • 100 MMbbls 2P/2C Reserves • 10,000 bbls/day production Mission • Advancing assets from Exploration to Production • Capitalise on a strong foundation built over the last 4 years
Slide 7: Delivering our mission
Delivering our mission Foundation Strengths Target Seasoned • Proven success and expertise in the upstream industry Management Team • Enterprising culture with an entrepreneurial spirit Business • Diversity in nationality, skillsets, background and gender Sustainability Knowledgeable & • Committed t
Slide 8: Section 2: Seasoned Management Team
Section 2 Seasoned Management Team 7
Slide 9: A Stable and Experienced Team with Proven Success
A Stable and Experienced Team with Proven Success A constellation of senior industry BOARD OF MANAGEMENT professionals with more than 250 years DIRECTORS TEAM experience in the upstream business Skills and experience from a range of Business Builders Board of Directors industries and sectors • Exper
Slide 10: Section 3: Knowledgeable and Loyal Shareholders
Section 3 Knowledgeable and Loyal Shareholders 9
Slide 11: Shareholder Base
Shareholder Base 17.2% No of Shares % of Management (in million) Shares Shareholder Profile held IPO Current Current RM 0.675 980,806,454 Share Price 83.61 168.57 17.19% Management Team Total number of Shares 662,044 0.00 108.66 11.08% Shareholder in private oilfield services provider Market Cap RM’
Slide 12: Section 4: Efficient Capital Utilization
Section 4 Efficient Capital Utilization 11
Slide 13: Hibiscus Strategy: Building a robust and balanced portfolio
Hibiscus Strategy Building a robust and balanced portfolio EXPLORATION DEVELOPMENT PRODUCTION Sharjah VIC/P57; VIC/L31; Anasuria Cluster3 Offshore Sea Lion West Seahorse RAK Onshore Block 50 19 Licenses2 RAK Offshore4 in Norway Value accretion ($/boe, risked) Block 2 1 Highest value creation takes p
Slide 14: Asset Base and Company Structure
Asset Base and Company Structure Balanced investment and risk profile HIBISCUS PETROLEUM BERHAD (Listed on Bursa Malaysia) UNITED AUSTRALIA EGYPT OMAN UAE NORWAY KINGDOM Anasuria VIC/L31; Sharjah Block 21 Block 50 19 Licenses 2 Cluster3 West Seahorse Offshore 50% 100% 50% 22.4% 35% Up to 17.5% 2 VIC
Slide 15: Reserves and Resources
Reserves and Resources Creating sustainable growth 2P + 2C Oil Reserves (MMbbls)* Prospective Resources (MMbbls/MMboe)* 43.0 8.6 88.2 10.5 8 246.4 38.7 1521.2 MMbbls MMboe 20.2 1,135.0 Australia - West Seahorse: 100% (Concession Operator) Norway: 2 to 17.5% UK - Anasuria Cluster (JOC); Includes 2P R
Slide 16: Key Focus Areas
Key Focus Areas Covering the next 24 months Delivering on our mission with clearly defined near-term targets Achieve Material Cashflow • Production of 10,000 bbls/day Sustainability Q1 • Secure reserves of 100 Mmbbls 2P/2C 2017 Deliver Value Q1 • Recognize the USD valuation of our global assets 2016
Slide 17: Section 5: Assets: Exploration Potential with Production
Section 5 Assets: Exploration Potential with Production Core Assets: United Kingdom Australia Other Assets: Middle East and North Africa (MENA) Norway 16
Slide 18: Asset Base and Work Program
Asset Base and Work Program Production United Kingdom - Anasuria Cluster3 50% stake • Subject to Completion of transaction Development Australia - VIC/L31 (West Seahorse) 100% stake • Q2 2017 – First oil (Pending results of Sea Lion) Exploration Australia - VIC/P57 (Sea Lion) 78.3% stake4 • Q4 2015
Slide 19: Section 5: Assets: Exploration Potential with Production
Section 5 Assets: Exploration Potential with Production Core Assets: United Kingdom Australia Other Assets: Middle East and Africa (MENA) Norway 18
Slide 20: Production in the North Sea, UK
Production in the North Sea, UK A balanced portfolio of producing assets with significant upside Exploration Development Production The Anasuria Cluster Asset Name: Anasuria Cluster, comprising: Norway • Cook (38.6%) Producing Field • Teal (100%) Producing Field Anasuria COOK Cook Cluster • Teal Sou
Slide 21: Anasuria Cluster, UK: Key milestones towards completion
Anasuria Cluster, UK Key milestones towards completion of the transaction Exploration Development Production Total Purchase Consideration Stage Consideration (Hibiscus Share) Est. Timing • USD 105m (USD 52.5m Hibiscus share) SPA Signed USD 4m Aug 2015 Closing USD 26m (Unadjusted - est. at USD8m Jan
Slide 22: Anasuria Cluster, UK
Anasuria Cluster, UK A common infrastructure for all producing wells and future development Exploration Development Production Cook Field Anasuria FPSO Kite Discovery Teal Field 40.4 MMstb 2P Oil Reserves1 Guillemot A 27.9 Bscf 2P Gas Reserves1 Teal South Field Field Averaged production rate1,2 of >
Slide 23: Anasuria Cluster, UK: Merits of the transaction
Anasuria Cluster, UK Merits of the transaction Exploration Development Production Significance of the Anasuria Cluster upon completion of the transaction The achievement of a milestone in our Portfolio FIRST PRODUCING ASSET Balancing Strategy Expands Hibiscus’ operatorship experience Hibiscus-Ping j
Slide 24: Anasuria Cluster, UK: Ownership of the FPSO
Anasuria Cluster, UK Ownership of the Anasuria FPSO and existing infrastructure Exploration Development Production 200 people* are currently working on the day to day operations • Plan to maintain existing contractors/crew to maintain smooth operation during transition • Assets can continue to be op
Slide 25: Section 5: Assets: Exploration Potential with Production
Section 5 Assets: Exploration Potential with Production Core Assets: United Kingdom Australia Other Assets: Middle East and North Africa (MENA) Norway 24
Slide 26: Exploration and Development in the Bass Straits, Australia
Exploration and Development in the Bass Straits, Australia Fast-tracked execution of marginal field development Exploration Development Production The Sea Lion exploration drilling program will deliver outsized returns to the West Seahorse project upon discovery Success case Significant increase i
Slide 27: VIC/P57 – Sea Lion Exploration Prospect
VIC/P57 – Sea Lion Exploration Prospect Elevating Opportunities Exploration Development Production Phase 1: Acquisition Date: January 2013 Water Depth/Size: Up to 150m/460km2 Effective Interest: 78.3%* (Concession Operator) Work Completed: Mapped drill-ready prospects Rig secured (Origin rig club) U
Slide 28: VIC/L31 – West Seahorse Field
VIC/L31 – West Seahorse Field Our first field development Exploration Development Production Phase 2: Acquisition Date: January 2013 Participating Interest: 100% (Concession operator) Work Completed: Field Development Plan approved Production License obtained Programme: FID Q4 2015* Award major cont
Slide 29: Section 5: Assets: Exploration Potential with Production
Section 5 Assets: Exploration Potential with Production Core Assets: United Kingdom Australia Other Assets: Middle East and North Africa (MENA) Norway 28
Slide 30: Exploration with Development Potential in the Gulf of Suez
Exploration with Development Potential in the Gulf of Suez Block 2, Egypt Exploration Development Production Block 2, Egypt Asset Name: Block 2 – South East Ras El Ush Asset Type: Offshore Exploration (with one discovered field – West Ashrafi) Country: Egypt Location: Southern Gulf of Suez Water Dep
Slide 31: Block 2, Egypt
Block 2, Egypt Extracting Value From Egypt’s Most Prolific Basin Exploration Development Production Successfully awarded a concession which includes a discovered oil accumulation in one of Egypt’s most prolific basins. 1P Reserves1: 7.5 MMstb 2P Reserves1: 9.3 MMstb 3P Reserves1: 11.4 MMstb Prospect
Slide 32: Exploration in the Middle East
Exploration in the Middle East Diverse exploration assets - high impact acreage Exploration Development Production The Middle East assets are HIGH IMPACT exploration assets Hibiscus led the drilling operations that resulted in the FIRST OFFSHORE DISCOVERY in east coast of Oman in over 30 years. • Fo
Slide 33: Block 50, Oman
Block 50, Oman Extracting Value From Our Discovery Exploration Development Production Block 50, Oman Asset Name: Oman Block 50 Asset Type: Development Country: Oman Effective Date: August 2011 Water Depth/Size: Up to 150m/16,900km2 Participating Interest: 22.4% (through Lime) Discovery Date: March 2
Slide 34: Section 5: Assets: Exploration Potential with Production
Section 5 Assets: Exploration Potential with Production Core Assets: United Kingdom Australia Other Assets: Middle East and North Africa (MENA) Norway 33
Slide 35: Exploration in Norway
Exploration in Norway Diverse Profile of Exploration Assets – Managing Risks Exploration Development Production Norway licenses are located in a PROVEN oil basin We have exposure to 19 LICENSES* in Norway via (non-operated) equity interest • Attractive incentives offered by Norwegian government resu
Slide 36: Norway
Norway Diverse Profile of Exploration Assets – Managing Risks Exploration Development Production PL338C PL591 PL616 PL708 PL544 Lime Norway Exposure to 19* 30% 25% 15% 10% 30% Stake* concessions in Tullow Oil Lundin Norway Lundin Norway Norway Operator Lundin Norway AS Norge AS Edison Norge AS AS AS
Slide 37: Current and Planned Drilling Activities
Current and Planned Drilling Activities Prospect/ Well 2015 2016 2017 Location Comments License Type J F M A M J J A S O N D Pending the handover of the drilling Sea Lion (VIC/P57) EXP O rig from Origin to spud and drill Sea Lion well Australia West Seahorse Value engineering to reduce CAPEX (VIC/L3
Slide 38: Section 6: What Differentiates Us?
Section 6: What Differentiates Us? 37
Slide 39: What Differentiates Us?
What Differentiates Us? • Experienced board and management team • Diverse portfolio of assets (type of fields, geographical location, risk, rate of return) to ensure business sustainability • Focused on being aligned to the best interests of all stakeholders • A loyal and knowledgeable group of shar
Slide 40: Plan For Success
Plan For Success Value creation via plan for success and streamlining processes PLANNING Large Operators have internal processes that prevent such an approach FOR Small Operators have the ability to control their own destiny but it requires management commitment and a proactive but disciplined appro
Slide 41: Appendix
Appendix 40
Slide 42: Business overview
Business overview • Hibiscus Petroleum Berhad is focussed on the exploration and production sector of the upstream oil and gas industry. The Company: • Is quoted on the Main Market of the Malaysian stock exchange since July 2011 (having evolved from a Special Purpose Acquisition company) • Has a mar
Slide 43: Business overview
Business overview • Hibiscus is seeking to cement its position as a leading independent E&P business capitalising on its strong asset base. Having recently concluded a major transaction with Shell and Exxon in the UK sector of the North Sea, the company has also demonstrated its credentials as a res
Slide 44: About us: Vision and Mission
About us… Vision and Mission Creating a sustainable and growing business • Hibiscus’ long term strategy and report card • The mission is to build an E&P company that has: • 2P/2C Reserves of 100 Mmboe coupled with oil / gas production equivalent of 10,000 boepd • A market cap that reflects this scal
Slide 45: Hibiscus strategy: An overview
Hibiscus strategy An overview • Founding Strategy: • Hibiscus’ founding strategy is to create a sustainable business by securing and developing a risked- balanced and valuable portfolio of licences in geo-politically stable jurisdictions leveraging on its technical capabilities, business relationshi
Slide 46: Hibiscus strategy: Forward Strategy
Hibiscus strategy Forward Strategy The building blocks that have been set are consistent with the long term objectives of the company. The key activity is currently based around efficient execution to: • Achieve Material Cashflow • Production of 10,000 bbls/day of production. • Sustainability • Secu
Slide 47: Anasuria acquisition rationale
Anasuria acquisition rationale Anasuria Cluster, UK, overview The Anasuria acquisition offers significant strategic and value upside to Hibiscus as: • It is a producing asset with 20 years economic life • The acquisition timing is at a low point in the commodity price cycle • Hibiscus will have sign
Slide 48: Valuation of Hibiscus Petroleum Assets
Valuation of Hibiscus Petroleum Assets Valuation Asset Source (USD mm) WSH (L31) SP Angel Research Report 42 Norway SP Angel Research Report 123 Oman -Block 50 SP Angel Research Report 170 Sea Lion SP Angel Research Report 43 UAE assets SP Angel Research Report 101 Valuation of all HPB assets* USD 4
Slide 49: Definition of Reserves and Resources
Definition of Reserves and Resources Increasing commerciality Low High Low Undiscovered - Discovered – Discovered – Prospective Resources Contingent Resources Reserves Range of Certainty High Estimate 3C 3P Best Estimate 2C 2P Low Estimate 1C 1P High Source: Society of Petroleum Engineers and World
Slide 50: Disclaimer
Disclaimer This presentation has been prepared by Hibiscus Petroleum Berhad (the “Company”) solely for use at a general presentation/briefing 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 rea
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