Horizon Oil Limited · ASX:HZN
Horizon Oil — Oil Council Asia-Pacific Assembly 2015
22 slides from Horizon Oil's conference presentation, Jan 28, 2015
Slide 1: ASX cover letter for conference presentation
28 January 2015 For personal use only The Manager, Company Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Oil Council Asia-Pacific Assembly 27-29 January 2015, Singapore Please find attached the presentation which will be presented by Brent Emmett, Chief Executive Officer
Slide 2: Horizon Oil Limited - Oil Council Asia-Pacific Assembly
Horizon Oil Limited Oil Council Asia-Pacific Assembly 27 - 29 January 2015, Singapore For personal use only Brent Emmett CEO This presentation contains some references to forward looking assumptions, representations, estimates and outcomes. These are uncertain by the nature of the business and no as
Slide 3: Horizon Oil (HZN:AU) at a glance
Horizon Oil (HZN:AU) at a glance Sydney-based public company listed on Australian Securities Exchange and in ASX 200 Index For personal use only Portfolio of exploration, development and producing assets in Asia-Pacific region Shareholding: IMC (Singapore) - 25%, institutions - 40%, high net w
Slide 4: Key performance measures – last five calendar years
Key performance measures – last five calendar years For personal use only Completion of Maari Growth Projects expected to increase production in 2015. Revenue will maintain in 2015 even with lower oil prices, because of Production from Beibu Gulf will be maintained through 2015, despite field the be
Slide 5: Asset portfolio
Asset portfolio Clear geographic focus on For personal use only Asia-Pacific region Technical focus on proven, conventional plays with scale, upside and manageable risk * Working with experienced partners such as CNOOC, OMV, Mitsubishi and Osaka Gas Currently producing oil but will have a di
Slide 6: Net reserves, contingent resources and prospective resources
Net reserves1, Contingent Resources1 and Prospective Resources1 as at 30 June 2014 For personal use only RESERVES CONTINGENT RESOURCES PROSPECTIVE RESOURCES Proven + Probable Proven + Probable Best Estimate 1 Estimated in accordance with SPE-PRMS standard; 6 bcf gas equals 1 boe; 1 bbl condensate eq
Slide 7: Balanced portfolio – focus on resource development
Balanced portfolio – focus on resource development For personal use only Large audited reserves and contingent resources base 12% developed / 88% undeveloped – 32% oil / 68% gas 12 mmboe 19 mmboe 64 mmboe 2P + 2C reserves and contingent resources of 95 mmboe 28 January 2015 6
Slide 8: Forecast net production from reserves and contingent resources
Forecast net production from Reserves + Contingent Resources as at 1 October 2014 For personal use only Expect to be able to maintain oil production of 4,000 – 6,000 bpd ahead of future large scale gas commercialisation PNG gas is major growth asset Includes historical production prior to 31 Dec
Slide 9: Beibu Gulf field production and future development areas – China
Beibu Gulf field production and future development areas – China For personal use only WZ 6-12N and WZ 12-8W fields producing above forecast Potential for higher oil recovery from WZ 12-8W Phase II WZ 12-8E development plan to be submitted for Government approval Q1 2015 Successful WZ 12-10-
Slide 10: Beibu Gulf fields – phased development scheme
Beibu Gulf fields – phased development scheme For personal use only Phased approach to development of new reserves – utilising existing infrastructure 28 January 2015 9
Slide 11: Papua New Guinea
Papua New Guinea For personal use only PNG is rich in oil, gas and minerals with track record of successful large-scale development projects Stable fiscal regime and succession of “pro- development” governments Jurisdiction well-supported by Asian banks Horizon Oil acreage position ~7,900 sq
Slide 12: Horizon Oil acreage and joint venture partners - Papua New Guinea
Horizon Oil acreage and joint venture partners - Papua New Guinea Successful Tingu-1 For personal use only exploration/appraisal well drilled in 2013 extended PRL 21 gas / condensate resources materially Development application for Elevala/Tingu/Ketu fields in PRL 21 filed in March 2014 Develo
Slide 13: Stanley and Elevala/Ketu field development schemes
Stanley and Elevala/Ketu field development schemes For personal use only Stanley field Petroleum Development Licence awarded in May 2014 Development drilling subsequently completed, both wells Stanley-3 and -5 met or exceeded expectations Elevala and Tingu to be developed as one field Eleval
Slide 14: PNG gas commercialisation options
PNG gas commercialisation options For personal use only Sales to regional buyers for power generation − Ok Tedi Mining Limited (OTML) and Frieda River project (when sanctioned) − Local towns and communities in Kiunga – Ok Menga – Frieda River corridor − Export to West Papua: Merauke, Jayapura Mi
Slide 15: Maari/Manaia fields – New Zealand
Maari /Manaia fields – New Zealand For personal use only Maari field facilities and FPSO Raroa repaired and upgraded in H2 2013 Maari Growth Projects Program currently underway utilising Ensco 107 jack-up rig Significant production increase forecast in 2015 Gross reserves (mmbo) at 2P PMP 3816
Slide 16: Maari / Manaia Growth Projects Program
Maari / Manaia Growth Projects Program For personal use only Objective to reconfigure water injection scheme, access undeveloped reserves and optimise production Ensco 107 jack-up rig moved over Maari wellhead platform and commenced operations in April 2014; program is progressing Operator for
Slide 17: Low oil prices and how we’re dealing with them
Low oil prices and how we’re dealing with them For personal use only Brent oil price Response to current environment Operating income protected by oil price hedging 2014 – 2016 Capex for 2015 substantively reduced and discretionary expenditure minimised Spend on new field development planning
Slide 18: Strong risk management with a well established hedging policy
Strong risk management with a well established hedging policy 1.1 mmbo hedged from Q4 For personal use only 2014 through mid 2016 at average of over US$95/barrel Oil price hedge profile Oil price hedging program means cash flows in 2014, 2015 and 2016 not critically impacted by low oil prices.
Slide 19: 2015 forecast net operating income
2015 forecast net operating income For personal use only Calendar Year 2013 Actual1 2014 Actual1 2015E Operating income after opex (including the Special Oil Gain Levy payable in China) and excl extraordinaries2 at oil price of US$55/bbl 62 91 86 (US$m) Sensitivity to oil price US$50/bbl 83 Sensitiv
Slide 20: Balanced portfolio – future investment focus on resource development
Balanced portfolio – future investment focus on resource development For personal use only Large audited reserves and contingent resources base 12% developed / 88% undeveloped – 32% oil / 68% gas 12 mmboe 19 mmboe 64 mmboe 2P + 2C reserves and contingent resources of 95 mmboe 28 January 2015 19
Slide 21: Strategic priorities
Strategic priorities For personal use only Focus on growing Horizon Oil to be an E&P leader in Asia-Pacific upstream space Optimise oil and gas production from our existing producing fields Develop discovered resources within our existing asset portfolio, taking advantage of anticipated capita
Slide 22: For personal use only
For personal use only 28 January 2015 21