Horizon Oil Limited · ASX:HZN

Horizon Oil — UBS Australian Resources, Energy and Utilities Conference 2014

38 slides from Horizon Oil's conference presentation, Jun 18, 2014

  1. Slide 1: UBS Connections Conference Presentation cover letter

    For personal use only 18 June 2014 The Manager, Company Announcements Australian Securities Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 UBS CONNECTIONS CONFERENCE PRESENTATION Please find attached the presentation which will be presented by Michael Sheridan, Chief Financial Off

  2. Slide 2: UBS Australian Resources, Energy and Utilities Conference

    Horizon Oil Limited ABN 51 009 799 455 UBS For personal use only Australian Resources, Energy and Utilities Conference Day 2, Energy 18 June 2014 Brent Emmett CEO This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain b

  3. Slide 3: Horizon Oil Snapshot

    Horizon Oil Snapshot  Market capitalisation of A$494m at A$0.38 per share on 17 June 2014 (1,301.2m shares) For personal use only  Current net production: Maari/Manaia 850 bopd priced at Brent plus US$5-6 Beibu Gulf 3,200+ bopd priced at Brent less US$4  Current EBITDA ~US$11m per month  Forecas

  4. Slide 4: Shareholder Distribution and Trading Statistics

    Shareholder Distribution and Trading Statistics SHARE PRICE HISTORY TRADING STATISTICS For personal use only 3

  5. Slide 5: Geographic Focus and Asset Location

    Geographic Focus and Asset Location For personal use only 4

  6. Slide 6: Investment Proposition

    Investment Proposition  Focused Asia Pacific E&P specialist For personal use only  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 began in Q3 2013

  7. Slide 7: Net Reserves, Contingent Resources and Prospective Resources

    Net Reserves1, Contingent Resources1 and Prospective Resources1 as at 1 January 2014 For personal use only RESERVES CONTINGENT RESOURCES PROSPECTIVE RESOURCES Proven + Probable Proven + Probable Best Estimate Block 22/12 PDL 10 (Stanley WZ 12-8E4 Liquids)5 Block 22/126,9 PMP 38160 1.5 mmbo 0..4 mmbo

  8. Slide 8: Forecast Net Production From Reserves + Contingent Resources

    Forecast Net Production From Reserves + Contingent Resources as at 1 January 2014 16,000 For personal use only 14,000 12,000 Barrels of oil equivalent per day 10,000 8,000 6,000 4,000 2,000 0 CY 13 CY 14 CY 15 CY 16 CY 17 CY 18 CY 19 CY 20 CY 21 CY 22 CY 23 CY 24 CY 25 Maari Wei 6-12 + 12-8W Wei 12-

  9. Slide 9: Significant Recent Achievements

    Significant Recent Achievements Successful sale of 40% of PNG assets to Osaka Gas  Horizon Oil entered into agreement in May 2013 to sell 40% of its PNG assets to Osaka Gas Co. Ltd. of Japan for For personal use only US$204 million, including US$74 million in cash on completion, a further US$130 mi

  10. Slide 10: Upcoming News Flow and Share Price Catalysts

    Upcoming News Flow and Share Price Catalysts Timeframe For personal use only  Progress on Stanley field development execution Ongoing to 2016  Improved production performance from Maari/Manaia fields and progress on Ongoing to Q1 2015 field upgrade  Progress on Beibu Gulf fields Phase II developm

  11. Slide 11: Maari/Manaia Fields – New Zealand

    Maari /Manaia Fields – New Zealand For personal use only PMP 38160: Gross reserves (mmbo) as 2P at 1 January 2014 (RISC HZN 10% estimate) OMV 69% (Op) Todd 21% Produced 22.0 CUE 5% Remaining 60.0 10

  12. Slide 12: Maari/Manaia – Key Points

    Maari/Manaia – Key Points  Wellhead platform / FPSO development in 100 m water depth For personal use only  Maari Moki zone developed with 5 producer wells and 3 water injectors – field developed on basis of 60 mmbo recoverable reserves; successful appraisal/development wells drilled from platform

  13. Slide 13: Maari Field Development Assets

    Maari Field Development Assets For personal use only 12

  14. Slide 14: Maari/Manaia Upside Potential

    Maari /Manaia Upside Potential For personal use only 13

  15. Slide 15: Maari/Manaia Growth Projects

    Maari/Manaia Growth Projects For personal use only Objective to reconfigure water injection scheme, access undeveloped reserves and optimise production 14

  16. Slide 16: PEP 51313 – New Zealand

    PEP 51313 – New Zealand Deep prospect and lead inventory with 74 mmbo exploration potential For personal use only 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 19 mmbo (operator estimate) 15

  17. Slide 17: Beibu Gulf Fields, China – Development Areas

    Beibu Gulf Fields, China – Development Areas For personal use only Block 22/12 Post-CNOOC Back-in: HZN 26.95% CNOOC 51.00% (Op) ROC 19.60% Majuko Corp 2.45% Gross reserves 2P (mmbo) as at 1 January 2014 Produced 3.0 Remaining 24.4 16

  18. Slide 18: Beibu Gulf Fields – Key Points

    Beibu Gulf Fields – Key Points For personal use only  Two 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; completion cost of origin

  19. Slide 19: Beibu Gulf Fields – Phased Development Scheme

    Beibu Gulf Fields – Phased Development Scheme For personal use only 18

  20. Slide 20: WZ 12-8E Early Production Concept – Phase II

    WZ 12-8E Early Production Concept – Phase II For personal use only WZ 12-1PUQB  Leased mobile production platform 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 perf

  21. Slide 21: Papua New Guinea

    Papua New Guinea For personal use only Horizon Oil acreage position expanded to ~7,900 sq km, primarily in wet gas “sweet spot” 20

  22. Slide 22: PNG Exploration and Development Program – Key Points

    PNG Exploration and Development Program – Key Points For personal use only  Commanding 7,900 sq km acreage position in liquids-rich “sweet spot” of foreland area with certified combined Horizon Oil & Osaka Gas condensate and gas reserves and resources of 135 mmboe net (81.3 mmboe net to Horizon Oil

  23. Slide 23: Horizon Oil Acreage and Joint Venture Partners

    Horizon Oil Acreage and Joint Venture Partners PRL 4: HZN 30% For personal use only 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 35% Osaka Gas 10% Eaglewood 45% P3GE 10% PPL 430: HZN 50% (Op) Eaglewood 50% PPLs 372

  24. Slide 24: Stanley Project Concept

    Stanley Project Concept Facilities For personal use only  2 train, 140 mmscfd gas refrigeration plant  Mercury removal via adsorption catalyst 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 bbl sto

  25. Slide 25: Stanley Production Facility Site

    Stanley Production Facility Site For personal use only 24

  26. Slide 26: Kiunga Base and Condensate Loadout Facility

    Kiunga Base and Condensate Loadout Facility For personal use only 25

  27. Slide 27: PRL 21 (Elevala/Tingu and Ketu) – Development Concept

    PRL 21 (Elevala/Tingu and Ketu) – Development Concept For personal use only 26

  28. Slide 28: PNG Gas Commercialisation Options

    PNG Gas Commercialisation Options  Sales to regional buyers for power generation – Ok Tedi Mining Limited (OTML) and Frieda River project (when sanctioned) For personal use only – Local towns and communities in Kiunga – OK Menga – Frieda River corridor – Export to West Papua: Merauke, Jayapura  Mi

  29. Slide 29: ROC + HZN Merger Rationale – 'Stronger Together'

    ROC + HZN Merger Rationale – ‘Stronger Together’ For personal use only Creating a leading Asian E&P company  Highly complementary portfolios • Asian focused portfolio with attractive assets across China, PNG, Malaysia, Myanmar and Australia / New Zealand • Consolidates the existing overlapping inte

  30. Slide 30: Indicative Combined Production Profile

    Indicative Combined Production Profile For personal use only Indicative combined production profile from discovered and appraised projects 25,000 Net working interest production (boepd) 20,000 15,000 10,000 5,000 - CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY26 CY27 CY28 CY29 CY30

  31. Slide 31: Strong Financial Position

    Strong Financial Position For personal use only • Strong cash flow with potential to support sustainable and increasing dividends, while also providing the ability to fund the combined group's highly attractive portfolio of growth options • Change of control in Horizon Oil will trigger a right for H

  32. Slide 32: Compelling Valuation Metrics

    Compelling Valuation Metrics For personal use only EV / CY14 EBITDA1,2,3 EV / CY15 EBITDA1,2,3 Rex International 66.7 Rex International 8.5 Kris Energy 15.2 RH Petrogas 7.0 RH Petrogas 10.8 Senex 6.0 Buru 8.5 Horizon Oil 4.9 Senex 6.7 Kris Energy 4.8 Horizon Oil 5.6 Buru 4.6 Medco 4.8 AWE 4.2 AWE 3.

  33. Slide 33: A Leading Asian E&P Company

    A Leading Asian E&P Company For personal use only Market Capitalisation (A$m)1,2 Enterprise Value (A$m)1,2 Senex 876 Medco 1,610 AWE 847 Energi Mega… 958 MergeCo 794 >1.1bn3 MergeCo 899 >1.2bn3 Medco 787 Drillsearch 822 Drillsearch 745 Salamander 820 Karoon 745 Senex 787 Kris Energy 659 AWE 769 Rex

  34. Slide 34: Highly Complementary Portfolios

    Highly Complementary Portfolios Resulting in Four Core Asset Areas For personal use only China (Bohai Bay) • Zhao Dong C&D Fields: 24.5% • Zhao Dong C4 Field: 11.667% • Zhanghai and Chenghai: 39.2% • Block 09/05: 100% China (Beibu Gulf) • Block 22/12: 46.55% Horizon Oil Assets ROC Assets Joint asset

  35. Slide 35: Strong, Well-balanced Growth Projects Pipeline

    Strong, Well-balanced Growth Projects Pipeline For personal use only Exploration Appraisal Development Production Elevala / Ketu Stanley Maari / Manaia PPLs 259, 430, 372, 373 PRL 21 PDL 10 (formerly PRL 4) PMP 38160 Matariki Beibu Gulf D35, J4 and D21 PSC Balai Cluster RSC PEP 51313 Block 22 /12 Bl

  36. Slide 36: Diversified Resource Base in Asia Pacific

    Diversified Resource Base in Asia Pacific For personal use only Horizon Oil (as at 1 Jan 2014) Roc (as at 1 Jan 2014) Merged Group 100% oil / --% gas 93% oil / 7% gas 96% oil / 4% gas 3.8 3.8 2P (MMBOE) 6.5 6.0 6.0 14.9 15.9 8.4 17.4 33.3 5.2 3.4 3.4 5.2 Australia / UK New Zealand PNG New Zealand PN

  37. Slide 37: Upcoming News Flow and Share Price Catalysts

    Upcoming News Flow and Share Price Catalysts Timeframe For personal use only  Progress on Stanley field development execution Ongoing to 2016  Improved production performance from Maari/Manaia fields and progress on Ongoing to Q1 2015 field upgrade  Progress on Beibu Gulf fields Phase II developm

  38. Slide 38: Please visit the Horizon Oil website

    Please visit the Horizon Oil website www.Horizonoil.com.au to see:- Detailed Investor Presentation Latest Quarterly Report For personal use only Analyst reports on HZN Level 7, 134 William St, The reserve and resource information contained in this announcement is based on information compiled by Ala

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