Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (September 2012)
57 slides from Hibiscus Petroleum Bhd's investor presentation, September 2012
Slide 1: Hibiscus Petroleum Berhad: Building Greater Value
Hibiscus Petroleum Berhad Building Greater Value CRPS Investor Pack: September 2012 IMPORTANT NOTICE This presentation document is NOT a prospectus and is STRICTLY CONFIDENTIAL. The contents of this document are intended for general information purposes only for sophisticated investors (namely, pers
Slide 2: Agenda
Agenda A. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction B. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach 2. Information on New Opportunities C. PROPOSED FUNDING STRUCTURE 1. CRPS (Convert
Slide 3: Market Data Summary
Market Data Summary Market: Main Market of Bursa Malaysia Securities Sector Category: Industrial Products Stock Code: 5199 HIBISCS Market Capitalization (5 September 2012) Shares: 438 248 422 units x RM 1.66 = RM 718.7 mil Warrants – A (Traded): 314 236 022 units x RM 1.08 = RM 339.4 mil Warrants
Slide 4: Presentation Content
Presentation Content A. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction B. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach 2. Information on New Opportunities C. INDICATIVE VALUATIONS 1. Curr
Slide 5: Hibiscus Petroleum: Our Milestones
Hibiscus Petroleum: Our Milestones 25 July 2011 Listed on the Main Market of the Malaysian Stock Exchange under Special Purpose Acquisition Company (SPAC) listing rules. As a SPAC, Hibiscus Petroleum was subject to several operating restrictions and was required to make a substantial investment in a
Slide 6: Hibiscus' Promise
Hibiscus’ Promise Creating Value Through Our Knowledge And Experience Private & Confidential Creating Value Through Our Knowledge And Experience 6
Slide 7: Capital Structure & Shareholder Profile
Capital Structure & Shareholder Profile Sources of Funds at IPO: July 2011 Shareholding Structure: Aug 2012 Shareholder % Shares Shareholder Profile 6% IPO / Current 17% 1 20.00% / Management Team 19.08% 2 9.57% / 9.13% Shareholder in public Total shares : listed oilfield services 418,047,922 35% pr
Slide 8: Current Capital Structure On Sept 2012
Current Capital Structure On 5 Sept 2012 As of 5 Sept 2012 Total number of shares in issue: 438,248,422 Total Number of Funds Received / To Be Warrants Received From The Exercise of Warrants RM’000 Total Warrants – A exercised as at 29 May 2012 20,200,500 10,100 Balance of Warrants-A yet to be exerc
Slide 9: Board Members 1
Board Members …. 1 Zainul Rahim bin Mohd Zain (Malaysian) Qualifications:: B.Sc. in Engineering (Mechanical), University of Western Australia. Chairman Experience: More than 30 years’ experience in the oil and gas exploration and production industry. (Non-Executive) Currently: Board member of Petron
Slide 10: Board Members 2
Board Members …. 2 Roushan Arumugam (Malaysian) Qualifications: M.A. in English Language and Literature, St. Catherine’s College, Oxford University, Masters Independent in Business Administration from Imperial College Business School and M.A. in Legal Studies, University of (Non-Executive) Bristol,
Slide 11: Board Members 3
Board Members …. 3 Tay Chin Kwang (Singaporean) Qualifications: Bachelor of Accountancy from the National University of Singapore. Certified Public Independent Accountant and fellow member of the Institute of Certified Public Accountants of Singapore. (Non-Executive) Experience: Over 22 years of exp
Slide 12: Key Management 1
Key Management …. 1 Joyce Vasudevan (Malaysian) Qualifications: B. Economics . (La Trobe University, Australia) and Certified Practicing Accountant (Australia). Chief Financial Experience: More than 20 years finance and operations experience. Previously: Ernst & Young, RHB Sakura Officer Merchant Ba
Slide 13: Key Management 2
Key Management …. 2 David Richards (Malaysian) Head Qualifications: B.Sc. (Hons) in Earth Science (UKM, Malaysia). Geoscientist Experience: 22 years of subsurface E & P experience. Previously: Geologist with Sun Oil, ExxonMobil, Carigali-Hess Operating Company and Newfield Malaysia. Expertise: Explo
Slide 14: Key Management 3
Key Management …. 3 Azleen Rosemy Ahmad (Malaysian) General Manager, Qualifications: B.Sc. in Actuarial Science and Finance (Wharton Business School, University of Pennsylvania, Corporate Finance USA) and Masters in Business Administration (University of Nottingham, United Kingdom). Experience: 20 y
Slide 15: Presentation Content
Presentation Content A. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction B. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach 2. Information on New Opportunities C. PROPOSED FUNDING STRUCTURE 1.
Slide 16: Qualifying Acquisition Transaction
Qualifying Acquisition Transaction • On 25 October 2011, Hibiscus Petroleum Berhad announced that its wholly owned subsidiaries Gulf Hibiscus Ltd and Hibiscus Oilfield Services Ltd had signed several agreements on 24 October with the shareholders of Lime Petroleum PLC. • These transactions constitut
Slide 17: Deal At The Time Of Signing
Deal At The Time Of Signing • Investment is for: a 35 % equity stake in Lime Petroleum (IoM) Ltd. • Assets are in Oman, RAK, Initial Concessions Technology License Sharjah and (prior to Ras Al-Khaimah Rex Gravity© completion) Fujairah or Oman Rex Seepage© equivalent Sharjah Rex Virtual Drilling© •
Slide 18: Deal Evolution
Deal Evolution Lime QA Securities Shareholders Deal Transaction Commission EGM Closing Announcement Approval Approval 16 February 21 March 18 April 25 October 2011 2012 2012 2012 Signing Approvals & Completion Deal Package Conditions Precedent Deal Package Fulfillment • 3 Concessions in Middle East
Slide 19: Lime Structure At Deal Completion
Lime Structure At Deal Completion Exposure to 8 concessions in the Middle East and Europe Hibiscus Petroleum Schroder 100.0 % Berhad Dahan 59 % & Co Rex Oil & RAK Petroleum Banque Gas Ltd Gulf Offshore S.A. Hibiscus Ltd Ltd Zubara 100 % Sharjah Petroleum 8.60 % 56.40 % 35.0 % Offshore 100.0 % Ltd Hi
Slide 20: Lime: Middle East Concessions
Lime: Middle East Concessions Concessions are in an established petroleum producing province RAK Onshore RAK North Concession Concession Sharjah Concessions Dahan Petroleum Right Ally – 16 % Schroder – 25 % RAK Lime North – 59 % East Coast Sharjah Baqal Petroleum Lime – 100 % Zubara Petroleum Oman L
Slide 21: Lime: Norwegian Assets
Lime: Norwegian Assets PL 530 GDF – 40% (OP) North Energy – 10% Discover -20% Rocksource – 20% PL 518 Lime – 10 % Dong – 40% (OP) North Energy – 15% Sagex – 10% Discover -20 % Lime – 15 % PL 526 North Energy – 20% (OP) Noreco – 20% Dana -20% E.ON Ruhrgas – 20% Lime – 20 % PL 503 Lotos EP – 25% (OP)
Slide 22: Lime Group: Estimated Resources
Lime Group: Estimated Resources Middle East Source: Aker Geo Net Unrisked Best Estimate Net Risked Best Estimate Recoverable Resources Recoverable Resources (mmboe) (mmboe) RAK North Concession 60.9 13.4 Sharjah Concession 426.0 55.0 Block 50 Concession 1,420.0 248.0 RAK Onshore Concession TBA TBA T
Slide 23: Rex Proprietary Technologies
Rex Proprietary Technologies Rex Oil & Gas, major shareholders of Lime Petroleum PLC, has developed three new unique technologies which seeks to reduce the: early risks associated with discovery of oil and gas (and its commercial impact) time to commercialize viable fields The technologies are:
Slide 24: Technology License: Geographical Coverage
Technology License: Geographical Coverage • 15 countries covering the most prolific petroleum basins which contain more than half of global proven oil reserves for a minimum of 3 years: + Bahrain + Egypt + Iran + Iraq + Jordan + Kuwait + Lebanon + Oman + Palestine (Gaza Strip and West Bank) + Qatar
Slide 25: Benefits of Rex Technologies
Benefits of Rex Technologies Conventional Work Program Rex / Lime Work Program Relative Activity Time Relative Activity Time Rex Cost (mths) Cost (mths) Technology Low Secure Concession 12 – 18 Low Secure Concession 9-12 • Gravity • Seepage Exploration 36 – 60 Commitment Exploration 12-24 • Virtual
Slide 26: Merits Of The Lime Transaction 1
Merits Of The Lime Transaction…..1 Large acreage position in known petroleum provinces which are diversified from geopolitical and geophysical standpoints. Middle East Norway Large position of net resources with more upside. US$ 50 mil of the purchase consideration will be infused into Lim
Slide 27: Merits Of The Lime Transaction 2
Merits Of The Lime Transaction …..2 Opportunity to learn and work with established operators. North Energy (Norwegian), Dong (Denmark), Gaz de France (France), Lotos(Polish) Due to the Norwegian tax regime Lime`s exploration expenses will be competitive going forward as 78% of the costs are re
Slide 28: Lime Group: Fully Funded Work Program
Lime Group: Fully Funded Work Program 2012 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Seismic Seismic Acquisition Oman Block 50 Acquisition Reprocessingofofexisting Reprocessing existing data data Processing, Interpretation & VD Processing, I
Slide 29: Presentation Content
Presentation Content A. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction B. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach 2. Information on New Opportunities C. PROPOSED FUNDING STRUCTURE 1.
Slide 30: Business Approach & Investment Focus Going Forward
Business Approach & Investment Focus Going Forward $/boe, risked Prospective $/ boe, Risked Prospective Contingent Contingent Reserves Reserves Resources resources resources Resources Increased recovery? Increased recovery High Cost Cost Overstated Overstated overrun reserves? Discovery overrun dela
Slide 31: Company & Strategy Evolution
Hibiscus Petroleum: Company & Strategy Evolution Lime Petroleum Exploration Focus Qualifying Acquisition • Middle East / North • Based on Rex Technologies Africa / Europe Hibiscus Petroleum Hibiscus Oilfield Project Manager Berhad Services Early Production A Key Driver Development / Production Orien
Slide 32: Mid Term Funding Plan
Mid Term Funding Plan Warrants High Proceeds + Free Cash Flows from Earlier Projects IPO Proceeds IPO Proceeds + O Early CRPS IPO Proceeds Tranches + Later CRPS Qualifying Acquisition Tranches O Risk Profile • High Impact Advanced Future Exploration to Build O Exploration Value Development Assets Pr
Slide 33: Presentation Content
Presentation Content A. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction B. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach 2. Information on New Opportunities C. PROPOSED FUNDING STRUCTURE 1.
Slide 34: Information on New Opportunities
Information on New Opportunities Proposed Acquisition of Interest in 3D Oil Limited and Proposed Farm-in Opportunity in VIC/P57 Permit in Australia The Proposed Transaction Background Information on the Opportunity Valuation Key Terms of Proposed Transaction Funding of Transaction Imme
Slide 35: Australia: Summary of the Proposed Transaction
Australia : Summary of the Proposed Transaction • As part of its portfolio balancing strategy, Hibiscus Petroleum, through Oceania Hibiscus and Carnarvon Hibiscus is proposing to: o subscribe 14.99% of the current share capital i.e. 30,963,000 shares at approximately AUD0.066 per share (based on 30-
Slide 36: Australia: Transaction Governance
Australia : Transaction Governance • Experienced local and international team appointed …. Appointed Advisors Principal Advisor Hong Leong Investment Bank Berhad Local Legal Advisor Murad Yee Partnership Foreign Legal Advisor Corrs Chambers Westgarth Tax Advisor PricewaterhouseCoopers, Perth Local A
Slide 37: Australia: Introduction to 3D Oil Limited
Australia : Introduction to 3D Oil Limited • Incorporated in July 2003 in Australia. Listed on the ASX on 22 May 2007 (raised AUD 44 million). • Principal continuing activities : Exploration and development of upstream oil and gas assets. • Owns an undeveloped proven oil field and exploration intere
Slide 38: Australia: Gippsland Basin Background
Australia : Gippsland Basin Background • Australia’s most prolific oil & gas basin, close to major existing infrastructure, including established oil & gas refineries • Operations are made up of 18 platforms and several subsea tiebacks VIC/P57 • Over 30 fields including 3D Oil’s West VIC/P57 Seahors
Slide 39: Australia: Background Information on VIC/P57
Australia : Background Information on VIC/P57 • The VIC/P57 Exploration License is located in the northwest of the Gippsland Basin with the northern boundary some 10 kms offshore of the south-east Victorian coast and infrastructure. • The key assets within the permit are the (proven) West Seahorse F
Slide 40: Australia: Exploration Potential
Australia : Exploration Potential Sea Lion West Seahorse Wirrah Moonfish Felix Prospect Seahorse Prospect Private & Confidential Creating Value Through Our Knowledge And Experience 40
Slide 41: Australia: Summary of Resources of Exploration Prospects
Australia : Summary of Resources of Exploration Prospects Source: RISC Field: Sea Lion POS (%) Low Estimate Best Estimate High Estimate (MMBBLS) (MMBBLS) (MMBBLS) Formation • Gunnard 37 0.4 0.9 2.0 • N1 42 2.6 4.5 7.5 • N2.6 42 3.2 5.2 8.2 10.6 Field: Felix POS (%) Low Estimate Best Estimate High Es
Slide 42: Australia: Key Terms of the Proposed Transaction 1
Australia : Key Terms of the Proposed Transaction … 1 Corporate Investment (AUD 2 MM) • To be used predominantly for the continued development of the existing permits; • AUD 2 MM to be paid 5 business days after Subscription Agreement. Shares to be issued to OHSB after shareholders’ approval; • Hibi
Slide 43: Australia: Key Terms of the Proposed Transaction 2
Australia : Key Terms of the Proposed Transaction … 2 Farm-in Investment (Consideration of AUD 13.5 MM and Investment of AUD 13.5 MM) • Entire AUD 27 MM is to be used for development of the project and is cost recoverable; • Payment terms : – AUD 20.25 MM upon Completion of Farm-in Investment – AUD
Slide 44: Australia: Funding of the Proposed Transaction
Australia : Funding of the Proposed Transaction AUD (MM) RM (MM) Subscription of 3D Oil shares 2.0 6.6 Investment in VIC/P57 27.0 88.6 Transaction Cost 2.1 6.9 Total Initial Investment 31.1 102.0 AUD (MM) RM (MM) Raised from CRPS to-date 22.7 74.5 Hibiscus Internal Funds 8.4 27.5 Total Initial Fundi
Slide 45: Australia: Merits of the Proposed Transaction 1
Australia : Merits of the Proposed Transaction … 1 Proposed Subscription Favourable terms as Hibiscus Petroleum was able to negotiate a payment in exchange for 3D Oil Shares, instead of the generally accepted practice of a deposit upon execution of an acquisition agreement as a commitment fee Ca
Slide 46: Australia: Merits of the Proposed Transaction 2
Australia : Merits of the Proposed Transaction … 2 Utilisation of Farm-In Sum (AUD 27 MM) for initial work programme including drilling of up to 2 appraisal-cum- production wells within the West Seahorse Prospect. As the West Seahorse prospect is a discovered asset with proven reserves, drilling a
Slide 47: Australia: Merits of the Proposed Transaction (Strategy fit)
Australia : Merits of the Proposed Transaction … 3 Strategy fit High Qualifying Acquisition Risk Profile • High Impact Advanced Lime Assets VIC/P57 Exploration to Build Value S Lime Transaction Development Assets • Proven Resources to Build Balance Sheet Production Assets Resilience and • Cashflow f
Slide 48: Presentation Content
Presentation Content A. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT 1. Introduction to Hibiscus Petroleum Berhad 2. Qualifying Acquisition Transaction B. COMPANY GROWTH AND STRATEGY GOING FORWARD 1. Business Approach 2. Information on New Opportunities C. PROPOSED FUNDING STRUCTURE 1.
Slide 49: CRPS Fund Raising Initiative
CRPS Fund Raising Initiative Additional 400% Concessions As part of a continuous effort to maintain Mkt Cap: in Norway 3D Oil and and RAK VIC/P57 value creation momentum, Hibiscus 350% US$ 218 mil Transaction Shareholders Petroleum is examining the viability of raising 5 Sept 2012 Approve Lime up
Slide 50: CRPS: Overview
CRPS : Overview Price Fixed at conversion Payment of Funds Independent premium ≤10% over the 5-day VWAMP share 5% :- 10 BD after signing Custodian <RM15m 10% 95% : 3 BD after EGM (26 (Pacific Trustees) Sept 2012) RM15m to <RM30m 7.5% RM30m to <RM45m 5.0% RM45m to <RM60m 2.5% Early Oct 2012 ≥RM60m 0%
Slide 51: CRPS terms 1
CRPS terms….1 No of CRPS Up to 210,000,000 CRPS raising up to RM210,000,000 Par value RM0.01 (i.e. the par value of HP shares) Issue Price RM1.00 Mode of Issue Private placement without prospectus. The CRPS are to be placed out in multiple tranches within 6 months from the date of receipt of Bursa M
Slide 52: CRPS terms 2
CRPS terms….2 Independent Expert An independent expert shall verify the compliance of the actual utilisation of proceeds with the “Permitted Utilisation of Proceeds” clause. Conversion Price The Conversion Price will be fixed at a premium of up to 10% over the 5-day VWAMP of HP Shares immediately be
Slide 53: CRPS terms 3
CRPS terms….3 Redemption In the event less than 80% of the proceeds raised (excluding interest earned) are utilised Option as permitted under the terms of the CRPS, as at 1 month prior to the Maturity Date, holders have a one-time option to redeem, on a pro-rata basis, up to a maximum aggregate rede
Slide 54: CRPS terms 4
CRPS terms….4 Condition of The redemption of the CRPS shall be subject to, and in accordance with, Section Redemption 61 of the Companies Act, 1965 Redemption Price Redemption Price (in RM) will be determined based on the formula below: 𝑈 𝑅 = [ 1 + 5% × ] 365 Where, R = Redemption Price per…
Slide 55: CRPS Issue: Indicative Schedule
CRPS Issue: Indicative Schedule Sign CRPS Payment Approval Issue of Cut-off Date Maturity Date Payment of Subscription of 5% from CRPS (first 95% balance Agreement Deposit shareholders tranche) Optional Conversion at the earlier of 6 months or when 10 Business Days 3 Business Days the share price re
Slide 56: Key Advantages Of Participating In The CRPS Exercise
Key Advantages Of Participating In The CRPS Exercise For a single investor, the CRPS block provides an opportunity to become the single largest shareholder on a (currently) fully diluted basis. Invested funds are maintained with a Trustee and utilized on projects which provide the desired return
Slide 57: For further clarifications, please contact Joyce Vasudevan
For further clarifications, please contact Joyce Vasudevan at:- Mobile : + 6013 3657835 Office : + 603 2092 1300 Email : joyce@hibiscuspetroleum.com Private & Confidential 57 Creating Value Through Our Knowledge And Experience 57
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