Horizon Oil Limited · ASX:HZN
Horizon Oil — Investor Presentation (September 2020)
17 slides from Horizon Oil's investor presentation, September 2020
Slide 1: Investor Presentation September 2020
c he IN Z INVESTOR PRESENTATION SEPTEMBER 2020 HORIZON OIL LIMITED | ABN 51 009 799 455
Slide 2: Horizon 2020
HORIZON 2020 OPERATIONS COCHINA BEIBU GULF C1 PAPUA NEW GUINEA BOARD WESTERN PROVINCE Mike Harding Gerrit de Nys Greg Bittar PDL 10 (Stanley) 30% Chairman Director Director PRL21 (Elevala/Ketu 30.15% Chris Hodge Sandra Birkensleigh Bruce Clement lg exploration Permits, Chief Executive Officer Direct
Slide 3: Horizon 2020 - Status
HORIZON 2020 - STATUS LOW COST, PROFITABLE OIL PRODUCER Se eel * Strong 2020 results - underlying $15 million profit before tax Annual net prod’n 1.5 mmbbls 1.6 mmbbls + Net cash position - the first in over 10 years Daily net prod’n 4,100 bopd 4,400 bopd * Strengthened balance sheet - paid down a f
Slide 4: Sustained Profitability from Consistent Low Cost Production
SUSTAINED PROFITABILITY FROM CONSISTENT LOW COST PRODUCTION OIL SALES (mmbbls) EBITDAX AND COST PER BBL us$m 100.0 20.0 0.29 90.0 18.0 1.37 mmbbls 0.31 80.0 ono; nenrrnepcnoooocpy eersbeceeeecbaaeaaaedoeesess coc 70.0 40 60.0 . 50.0 10.0 40.0 2 30.0 “5 20.0 oo F = FY 2016 FY 2017 FY 2018 FY 2019 FY
Slide 5: Free Cashflow & Net Cash Position Provides Pathway to Growth
FREE CASHFLOW & NET CASH POSITION PROVIDES PATHWAY TO GROWTH FREE CASH FLOW (US$m] NET DEBT (US$m] mmm Operating CF investing CF FCF —=@=FCF (excl. cost recovery] 131.9 108.5 88.6 “LT 10.2 “8.1 -30.1 ee 28.0 05 (ass OT au (ASE) VENA FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 * Free Cash Flow represents
Slide 6: Operations - Overview of Portfolio
OPERATIONS C1 CHINA OVERVIEW OF PORTFOLIO BEIBU GULF Block 22/12 (BeibuGulf] 26.95% / 55% CL) PAPUA NEW GUINEA WESTERN PROVINCE PDL 10 (Stanley) 30% PRL 21 (Elevala/Ketu) 30.15% PRL 28 (Ubuntu} 30% PRL 40 [Puk Puk/Douglas] 20% PPL 372 95% High margin, long life oil production PPL 373 100% assets in
Slide 7: China Beibu Gulf
CHINA BEIBU GULF SUB-SURFACE AND FACILITIES Balbu Gul OC Fields CHINA @ oi BEIBU GULF WZ 12-IPAP weepn Block 22/12 WEIZHOU 6-12, PRODUCTION AREA a sae =a ray compages zany (Ss : Block 2212 (22-08 YP: ween WEIZHOU 12-8 fiz 1.20 DEVELOPMENT AREA et 12-8 PRODUCTION AREA CORPORATE UPDATE ‘14SEPTEMBER 20
Slide 8: China Beibu Oil - 62% of Production; 70% of Cashflow
CHINA BEIBU OIL - 62% OF PRODUCTION; 70% OF CASHFLOW LOW COST, MAINTAIN PRODUCTION; OPEX <$10 / BBL BLOCK 22/12 PRODUCTION HISTORY & OUTLOOK + Prolific petroleum system with multiple iad d structural styles & reservoir intervals _ P| * Tertiary aged clastic reservoirs vex papel NF * Structurally con
Slide 9: How to Maintain Production and Maximise Value Prior to 2030 PSC Expiry
HOW TO MAINTAIN PRODUCTION AND MAXIMISE VALUE PRIOR TO 2030 PSC EXPIRY * Workovers / new perforations BEIBU WZ 12-10-3 Beibu Gulf, Offshore China * 2well infill drilling programme late 2020 — mie + Increased water handling capacity ke + WZ 12-8E production from early 2022 2021 drilling candidate (wi
Slide 10: China WZ 12-8 East Project - Phase 1
CHINA WZ 12-8 EAST PROJECT - PHASE 1 PRODUCTION HUB #3 - WITH FID IMMINENT + First oil early 2022 with average first-year oil rate ~4,000 bopd [gross] * Horizon’s estimate of gross 2P reserves ~2.3 mmbbls (net 0.6 mmbbls) * Horizon's share of total capital expenditure ~US$15 million AG + Development
Slide 11: NZ Maari Oil - 38% of HZN Production; 30% of Cashflow
NZ MAARI OIL - 38% OF HZN PRODUCTION; 30% OF CASHFLOW * Stable, low decline rate production from 9 producers Discovered 1983 (8 Maari and 1 Manaia) ual First Oil 2009 (FID 2005) * 2 water injectors (Maari) : Uiecven erin iain * Competent operator in OMV a Initial Expected 56 mmbbl . Recovery ‘moore
Slide 12: Maari - Reduce Costs, Increase Production, Extend Field Life
MAARI - REDUCE COSTS, INCREASE PRODUCTION, EXTEND FIELD LIFE JADESTONE EXPECTED TO REPLACE OMV AS OPERATOR H2 2020 * Ability to access the 20.3mmbbls gross 2C resources (NEI: 5.3mmbbls) in part dependent on oil price and Operator innovation * Focus is on two aspects of field management: 1) Streamlin
Slide 13: PNG 2C Resources
Ca 2C Resources {net to Horizon): PAPUA NEW GUINEA Oil Field MURUK Liquids: 19.4 mmbbls Raw gas: 599 bcf As at 30 June 2020 UBUNTU PRL 28 Gas Field WEST PAPUA. Oil Pipeline Proposed Oil Pipeline Gas Pipeline Proposed Gas Pipeline : 11.3mmbbls Condensate + Horizon Oil Development/Retention Licenses 4
Slide 14: PNG - World Class Resource (Commercially Challenging)
PNG —- WORLD CLASS RESOURCE (COMMERCIALLY CHALLENGING) STANLEY PDL10 30.00% (non Op} Field Licence Horizon working interest % 11.33mmbbls (condensate) 410 bef (gas) Gross 2C resource* Development plan Condensate stripping (+ diesel / gas to electricity?) Export route Fly River Current status Commerc
Slide 15: Conclusion
CONCLUSION HORIZON IS RESILIENT IN A LOW OIL PRICE ENVIRONMENT - A PLATFORM FOR BOTH ORGANIC AND INORGANIC GROWTH Looking ahead, there are several catalysts: Oil Price: once oil price exceeds US$35 - 40/bbl, Horizon builds free cash at a rate of ~A$10 million per year for every US$10/bbl increase in
Slide 16: Compliance Statements
COMPLIANCE STATEMENTS Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other trend projection
Slide 17: For More Information
c 0 IN nN Zz FOR MORE INFORMATION PLEASE CONTACT US Authorised, and approved, by the Chief Executive Officer CHRIS HODGE P +61 2 9332 5000 info@horizonoil.com.au Horizon Oil Limited Level 6, 134 William Street Woolloomooloo NSW 2011 Australia horizonoil.com.au