Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (December 2020)
52 slides from Hibiscus Petroleum Bhd's investor presentation, December 2020
Slide 1: An Insight Into Hibiscus Petroleum Berhad
An Insight Into Hibiscus Petroleum Berhad Dec 2020 R1
Slide 2: Disclaimer
Disclaimer The purpose of this presentation is to provide general information about Hibiscus Petroleum Berhad (the “Company”) to assist potential investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information that a prospective i
Slide 3: Content
Content Part 1: Introduction to Hibiscus Petroleum Part 2: Malaysia – 2011 North Sabah EOR PSC Part 3: United Kingdom – Anasuria Cluster Part 4: United Kingdom – Marigold & Sunflower Part 5: Australia – Bass Strait Assets Part 6: Financial Performance Part 7: Key Messages Appendix: Additional Inform
Slide 4: Introduction to Hibiscus Petroleum Berhad
Part 1 Introduction to Hibiscus Petroleum Berhad Malaysian Pure Play E&P Company 4 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 5: Hibiscus Today
Hibiscus Today Revenue generating and profitable production operations Company Snapshot • Listed in 2011 on the Main Market of Bursa Malaysia. Highlights • Our goal is to grow our business by enhancing production from mature assets Shares Issued1 1,612,378,757 safely and profitably in regions of our
Slide 6: Reserves and Resources Update
Reserves and Resources Update • Competent Person’s Reports were commissioned for the Anasuria and Marigold assets to provide independent assessments of the assets’ respective reserves. • Based on the reports by Gaffney Cline & Associates Limited (for Anasuria) and RPS Energy Consultants Limited (for
Slide 7: Leadership Team
Leadership Team Experience with diversity BOARD OF DIRECTORS Skills and Experience from a Range of Industries and Sectors • Technical, commercial and corporate experience particularly in the oil and gas industry • Finance, accounting and investment banking/management • Audit and risk Zainul Rahim bi
Slide 8: Shareholder Base
Shareholder Base A public company with strong liquidity and a diversified shareholder base 30.03 Number of million Shares2 % of Shareholder Profile Average Daily Trading RM 0.610 (million) Shares Volume November 2020 Share Price1 108.77 6.7 Management Team 138.90 8.6 Polo Investments Limited3 1,612,
Slide 9: Key Features of Warrants C
Key Features of Warrants C Terms Details Total Outstanding1 317,645,623 • 20 March 2018 – 19 March 2019 : RM1.00 Step-up Exercise Price • 20 March 2019 – 19 March 2020 : RM1.06 from Date of Allotment • 20 March 2020 – 19 March 2021 : RM1.12 Expiry Date 19 March 2021 For more information on Warrants
Slide 10: Islamic CRPS Fund Raising of RM203.6 million to Date
Islamic CRPS Fund Raising of RM203.6 million to Date Battling Unprecedented Market Conditions Covid-19 Pandemic Economic Headwinds • Demand disruption globally • Weakening economic outlook impacting various industry worldwide, exacerbated by Oil Price Volatility ecosystems US Presidential trade tens
Slide 11: A Global Phenomenon: Transition to Remain Relevant
A Global Phenomenon: Transition to Remain Relevant Core Mission (2021-2025) • Our aim is to grow an energy company that builds on its upstream oil and gas expertise. • Our focus is to enhance shareholder value whilst always being conscious of the environment and caring for our people. In the pursuit
Slide 12: Current Portfolio of Assets
Current Portfolio of Assets Secure and Producing with Development Opportunities United Kingdom Anasuria Cluster ▪ Producing asset ▪ Joint-operator (except Cook field) ▪ Partners: Ping Petroleum, Ithaca Energy ▪ Net 2P Reserves: 21.5 MMbbls ▪ Net 2C Resources: 2.0 MMbbls Marigold & Sunflower ▪ Develo
Slide 13: 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract
2011 North Sabah Enhanced Oil Part 2 Recovery Production Sharing Contract Portfolio of Assets - Malaysia 13 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 14: Overview of the North Sabah PSC
Overview of the North Sabah PSC Production Offshore Sabah, Malaysia Asset : 50% interest in the 2011 North Sabah EOR PSC: • St Joseph Producing Field • South Furious Producing Field • SF 30 Producing Field • Barton Producing Field • All associated equipment and assets related to the PSC including th
Slide 15: Sale of North Sabah Crude Oil
Sale of North Sabah Crude Oil Trades at a significant premium to the Brent crude oil benchmark • The Labuan Crude Oil Terminal (LCOT) is a storage and offloading facility for crude oil produced from our North Sabah asset, as well as from three neighbouring PSCs. • LCOT, which is operated by SEA Hibi
Slide 16: Operating Performance Metrics
Operating Performance Metrics Jul – Sep Apr – Jun Jan – Mar Oct – Dec Unit 20202 2020 2020 2019 Average uptime % 86 94 89 93 Average gross oil production bbl/day 16,895 18,780 17,395 17,076 Average net oil production bbl/day 6,251 6,949 6,436 6,318 Cargoes sold - 2 1 2 2 Total oil sold bbls 592,453
Slide 17: Status of Production Enhancement Projects
Status of Production Enhancement Projects Production enhancement projects will help arrest natural decline and increase gross oil production Project Project Description Total Gross CAPEX Status • Drilling and completion of 1 infill water SF30 Water Flood injection well intended for reservoir re- • R
Slide 18: Awards Won
Awards Won Malaysia Upstream Awards 2020 Best Emerging Petroleum Wells Excellence Category – Drilling Excellence Category – Arrangement Contractor GOLD Award BRONZE Award 2020 PETRONAS Focused Recognition Award Successful delivery of St Joseph Minor and Major Sands Field Development Plan (FDP) – Dem
Slide 19: The Anasuria Cluster
Part 3 The Anasuria Cluster Portfolio of Assets - United Kingdom 19 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 20: United Kingdom: The Anasuria Cluster
United Kingdom: The Anasuria Cluster Production in the UK Sector of the North Sea Asset Name Asset Type Hibiscus’ Stake Operator Guillemot A Producing Field 50% AOC Teal Producing Field 50% AOC Teal South Producing Field 50% AOC Kite Discovered Field 50% AOC Cook Producing Field 19.3% Ithaca Anasuri
Slide 21: Schematic of Field Layout and Infrastructure
Schematic of Field Layout and Infrastructure Anasuria FPSO Cook Field Kite Discovery Teal Field Guillemot A Field Teal South Field Infrastructure The asset infrastructure is laid over a distance of approximately 25km from Cook Field in the north to Guillemot A Field in the south, and includes the An
Slide 22: Ownership Structure of our UK Assets
Ownership Structure of our UK Assets Direct access to cashflows and located in a safe legal jurisdiction Hibiscus Petroleum Berhad 100% Atlantic Hibiscus Sdn Bhd 100% Anasuria Hibiscus UK Limited Marigold Project 50% 50% Anasuria Cluster Anasuria Operating Company Limited Operator 50% Licence P.198
Slide 23: Sale of Anasuria Crude Oil
Sale of Anasuria Crude Oil Transparent marketing and reporting of our UK crude oil offtakes by BP Oil • Anasuria Hibiscus has entered into a long-term offtake and marketing agreement for the sale of crude oil with BP Oil International Limited (“BPOI”). • Whilst we produce oil daily, we sell our oil
Slide 24: Operating Performance Metrics
Operating Performance Metrics Jul – Sep Apr – Jun Jan – Mar Oct – Dec Units 2020 2020 2020 2019 Average uptime % 94 85 89 85 Average net oil production rate bbl/day 2,753 2,539 2,802 2,680 1 Average net gas export rate boe/day 330 322 375 288 Average net oil equivalent boe/day 3,084 2,861 3,177 2,96
Slide 25: Status of Production Enhancement Projects
Status of Production Enhancement Projects Completion Project Project Description Status (Calendar Year) Subsea Installation of a new pipeline from the Guillemot field Work in 2021/22 Debottlenecking* to increase liquid production capacity. Progress Opportunity to drill 1 infill well in the Guillemot
Slide 26: Awards Won
Awards Won Safety Awards and Achievements Gold Award Awarded by the Royal Society for the Prevention of Accidents (“ROSPA”) for calendar year 2018 health and safety performance of the Anasuria FPSO facility - 20th consecutive annual award Order of Distinction Awarded by ROSPA for 20 consecutive Gold
Slide 27: Anasuria Cluster – Further Opportunities
Anasuria Cluster – Further Opportunities Teal West • Hibiscus has been investigating opportunities to extend the economic life, unlock value and maximise recovery from Anasuria Cluster stranded oil discoveries around the Anasuria FPSO. • A key development in this aspect was the offer by the UK Oil a
Slide 28: Marigold & Sunflower
Part 4 Marigold & Sunflower Portfolio of Assets - United Kingdom 28 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 29: United Kingdom: Marigold & Sunflower
United Kingdom: Marigold & Sunflower A Potential Game Changer Asset : 50% interest in: • Block 15/13a (Marigold) • Block 15/13b (Sunflower) Asset Type : Development Location : 250km northeast of Aberdeen, UK Water Depth : Approximately 140m SPA Date : 8 October 2018 Purchase : USD 37.5 million Consi
Slide 30: Target Development Milestones
Target Development Milestones • Development Concept to drill and complete subsea wells and tieback to an FPSO via pipelines has been selected as this concept provides the highest project value with the lowest execution and commercial risk. ‒ The project is expected to proceed in two phases to optimi
Slide 31: Marigold – Further Opportunities
Marigold – Further Opportunities Kildrummy Discovery • On 3 September 2020, the OGA, in their 32nd Licensing Round, offered for award Block 15/17a, containing the Kildrummy discovery, to AHUK. The block is located 8km from Marigold and is hoped that the Kildrummy discovery may become a potential tie
Slide 32: Australia Assets
Part 5 Australia Assets Portfolio of Assets - Australia 32 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 33: Ownership Structure of our Australia Assets
Ownership Structure of our Australia Assets WA/527-P Hibiscus Petroleum Berhad 100% Oceania Hibiscus Sdn Bhd 11.68% 100% VIC/P57 VIC/L31 T/49P VIC/P74 Carnarvon Hibiscus 3D Oil Limited Pty Ltd (CHPL) 100% 24.9% 75.1%* 100% Licence VIC/L31 Licence WA/527-P Licence VIC/P57 ▪ West Seahorse Field 20% 50
Slide 34: Development & Exploration Opportunities
Development & Exploration Opportunities VIC/P57 Exploration Licence VIC/P74 Exploration Licence Acquisition Date: January 2013 Acquisition Date: October 2019 Water Depth/Acreage: c. 50m/340km2 Water Depth/Acreage: 45-75m/1,006km2 Participating Interest: 75.1%1 (Concession Operator) Participating Int
Slide 35: Financial Performance
Part 6 Financial Performance 35 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 36: Continuous Improvements & Key Performance Metrics
Continuous Improvements & Key Performance Metrics • The key indicator (KPI) that measures asset performance is the operating cost per barrel (OPEX/bbl). Focused on cost management OPEX bbl Production to increase with projects identified for 2020 • As we undertake high capital expenditure projects wh
Slide 37: EBITDA – Boosted by Two Producing Assets
EBITDA – Boosted by Two Producing Assets Acquisition of the North Sabah asset has 250,000 set a higher base for the Group’s EBITDA. 200,000 150,000 100,000 EBITDA, RM '000 50,000 0 -50,000 One-off provision for impairment of our -100,000 Australian assets amounting to RM185.3m -150,000 -200,000 -250
Slide 38: Financial Highlights by Operating Segment
Financial Highlights by Operating Segment 1Q FY2021 RM’000 N. Sabah Anasuria Others1 Group Revenue 1Q 4Q FY2021 FY2020 Cargoes sold 2 1 - 3 North 592,453 bbls x 249,387 bbls x Revenue 97,965 46,582 946 145,493 Sabah USD39.46/bbl USD31.79/bbl 250,337 bbls x Gross Profit 47,059 28,001 946 76,006 Anasu
Slide 39: Historical Operational Performance At Various Oil Price Levels
Historical Operational Performance At Various Oil Price Levels • The average unit production costs (OPEX per boe or OPEX per bbl) for both the Anasuria Cluster and the North Sabah PSC are well below the average realised oil price achieved in the respective quarters. • The careful management of costs
Slide 40: Highlights from the Group's Balance Sheet
Highlights from the Group’s Balance Sheet A strong Balance Sheet As at As at As at As at As at RM 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 2020 2020 2020 2019 2019 Total assets 2,492.3m 2,426.2m 2,619.2m 2,567.8m 2,553.2m Shareholders’ funds 1,196.8m 1,221.3m 1,366.0m 1,290.1m 1,261.6m Cash and bank balan
Slide 41: Key Messages
Part 7 Key Messages 41 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 42: Key Messages
Key Messages ▪ Hibiscus Petroleum, as part of business continuity, has enacted various measures to mitigate the spread and impact of COVID-19 within our organisation as the health and safety of our personnel remains of upmost importance. ▪ We sold 842,790 barrels of oil in Q1 FY2021 and aim to produ
Slide 43: Appendix
Appendix • Views from Analysts • Reserves and Resources Classification • Key Payment Terms for Anasuria Acquisition • North Sabah Acquisition Commercial Details • Fiscal Systems – UK & Malaysia • Profiles: Board of Directors and Key Management 43 Hibiscus Petroleum Berhad Registration Number: 200701
Slide 44: Views from Analysts
Views from Analysts 44 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 45: Reserves and Resources Classification
Reserves and Resources Classification Increasing Commerciality Low High Low Undiscovered - Discovered - Discovered - Prospective Contingent Reserves Resources Resources Range of Certainty High Estimate 3C 3P Best Estimate 2C 2P Low Estimate 1C 1P High Source: Society of Petroleum Engineers and World
Slide 46: Key Payment Terms for the Anasuria Acquisition
Key Payment Terms for the Anasuria Acquisition Total Purchase Consideration: USD 52.5m Initial Consideration Deferred Consideration USD 30.0m USD 22.5m 6th August 2015 SPA Signing Date Paid in Cash: USD 4.0m March 2017 First Tranche Paid in Cash: USD 15.0m 10th March 2016 Completion Date Paid in Cas
Slide 47: North Sabah Acquisition Commercial Details
North Sabah Acquisition Commercial Details Total Purchase Consideration: USD 25m Initial Consideration Deferred Consideration USD 15m USD 10m 12 October 2016 SPA Signing Date USD 2.5m First tranche 31 March 2019 USD 5m 31 March 2018 Completion Date USD 12.5m Second tranche 31 March 2020 USD 5m Econo
Slide 48: Fiscal Systems – UK & Malaysia
Fiscal Systems – UK & Malaysia UK - Concession System Malaysia - Production Sharing Contract (PSC) (IOC is licence holder) (NOC is licence holder) Project Oil Company Project Oil Company Govt./Petronas Revenue + Revenue Revenue + Cost Recovery + Royalty - Corporate Income + Profit Oil share of + Pro
Slide 49: Profiles: Board of Directors
Profiles: Board of Directors Zainul Rahim bin Mohd Zain, Non-Independent Non-Executive Chairman • Appointed to the Board in December 2010. • Serves on the Boards of Cenergi SEA Sdn Bhd and the Malaysian Dutch Business Council. • Previously Board member of UKM Holdings Sdn Bhd, Bank Pembangunan Malay
Slide 50: Profiles: Key Management
Profiles: Key Management Mark John Paton, CEO, Anasuria Hibiscus UK • Joined Hibiscus in March 2013. • Over 40 years experience in the oil & gas industry, both in services and exploration and production sectors. • Previously worked at BP Exploration as a Production and Commissioning Engineer, and wo
Slide 51: Profiles: Key Management
Profiles: Key Management Lim Kock Hooi, Group Legal Counsel • Joined Hibiscus in October 2014. • Over 29 years experience in oil & gas law practice, both as in-house counsel and external counsel, covering asset transactions, project documentation, and management and resolution of project execution i
Slide 52: Contact Investor Relations Team
Contact For more information please contact: Investor Relations Team faq@hibiscuspetroleum.com 52 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
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