Download - Horizon Oil - Investor Presentation Jan
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HORIZON HORIZON OIL OIL LIMITEDLIMITEDABN 51 009 799 455
Investor PresentationInvestor PresentationJanuary 2012January 2012January 2012January 2012
This presentation contains some references to forward looking assumptions, representations,estimates and outcomes. These are uncertain by the nature of the business and no assurance canbe given by Horizon Oil Limited that its expectations, estimates and forecast outcomes will beachieved. Actual results may vary materially from those expressed herein.
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Horizon Oil in the Australian E&P SectorHorizon Oil in the Australian E&P Sector
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Horizon Oil ProfileHorizon Oil Profile
E&P petroleum company with geographic focus on SE Asia / Australasia
ASX listed inclusion within ASX 300 Index
M k t it li ti f A$243 t A$0 215 h 17 J 2012 (1 130 8 h ) Market capitalisation of A$243m at A$0.215 per share on 17 January 2012 (1,130.8m shares)
Net production currently 1,500 bopd, generating EBITDA of approx US$4m per month
2P reserves of 16.8 mmbo and resources of 19.1 mmbo / 326 bcf gas
Exploration potential of 97 million barrels of oil equivalent (mmboe) unrisked meanExploration potential of 97 million barrels of oil equivalent (mmboe) unrisked mean
At 30 September 2011:- Cash US$51.1m Convertible bond US$80.0m (matures June 2016, unless converted prior)
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Shareholder Distribution and Trading StatisticsShareholder Distribution and Trading Statistics
SHARE PRICE HISTORY TRADING STATISTICS
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Horizon Oil Board and ManagementHorizon Oil Board and Management
NON-EXECUTIVE DIRECTORS
RESPONSIBILITIES EXPERIENCE
Fraser Ainsworth AMB COMM FAICD FCPA
Chairman of Board, Chairman of Remuneration Nomination and
28 years in CSRs resource & energy business, former MD of Delhi, former MD of SAGASCO, Founder & Executive Director of Potential Energy Non executive Director of Envestra Limited and Chairman of TaracB.COMM, FAICD, FCPA Remuneration, Nomination and
Disclosure Committee, Member of Audit and Risk Management Committee
Executive Director of Potential Energy, Non-executive Director of Envestra Limited and Chairman of TaracAustralia Limited.
John HumphreyLL.B., SF Fin
Director, Chairman of Audit Committee, Member of Risk Management Committee
Senior partner in Mallesons Stephen Jacques, Director Downer EDI and Wide Bay Australia Limited, sitting member of the Takeover Panel.
Gerrit J de NysB.Tech, FIEAust, FAICD, CPEng
Director 40 years experience in civil engineering, construction, oilfield contracting and natural resource investment management. Former MD of IMC Group Direct Investments, Non-Executive Chairman of Red Sky Energy Limited, independent Non-Executive Director of Shui On Construction and Materials Limited.
Andrew StockB.Eng (Chem) (Hons), FAIE, GAICD
Director, Member of Risk Management Committee and Audit Committee
35 years of development, operations and commercial experience in energy industries in Australia and overseas. Director, Executive Projects for Origin Energy, former Executive General Manager for Major Development Projects for Origin Energy. Director of Geodynamics Limited and a member of the Advisory Boards for the Centre of Energy Technology & the Faculty of Engineering Computers and MathematicalBoards for the Centre of Energy Technology & the Faculty of Engineering, Computers and Mathematical Sciences at University of Adelaide.
MANAGEMENT AND CONSULTANTS
Brent EmmettB.Sc (Hons)
Chief Executive Officer / Managing Director and Member of Risk Management and Disclosure C itt
Over 30 years experience in exploration, E&P management, investment banking / Exxon, Elf Aquitaine, Ampolex, CIBC / Australia, New Zealand, Papua New Guinea, China, USA, Latin America.
Committee
Michael SheridanB.Ec, LL.M., F Fin
Chief Financial Officer / Company Secretary
Over 20 years experience in finance, commercial and legal areas / Ernst & Young, Ampolex, RGC Limited, Minera Alumbrera Limited, Hutchison Telecoms / Australasia, South East Asia, South America.
Alan FernieB.Sc
Manager, Exploration and Development Over 35 years experience in exploration, E&P management and business development / BP, Sun International, Ampolex, Santos, RISC / UK, Latin America, Asia, Australia, Middle East, Europe.
Paul EttemaB.E. (Hons)
Petroleum Engineering Adviser Over 30 years experience in reservoir engineering, development planning and operations management / Esso, Bridge Oil, Ampolex, NZOG / Australia, PNG, New Zealand, China.
Sir Moi Avei Advisor to Board Papua New Guinea Affairs
Former PNG Deputy Prime Minister and Minister for Petroleum and Energy, Managing Director of Hiri Consultants.
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James (Jim) Slater Principal of Kelly Down Consultants, Drilling and Logistics managers
Over 35 years experience in managing drilling operation in South America, Middle East and SE Asia, both onshore and offshore. For over 21years KDC has managed heli - supported logistics and drilling operations for good quality clients in PNG, including numerous wells in Western Province.
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Investment StrategyInvestment Strategy
Distinct southeast Asian geographic focus
Strong, long-lived cashflows from Maari field, offshore New Zealand, to fund future capital programcapital program
Substantial inventory of discovered reserves and resources to bring into production with minimal exposure to geological risk 98 million barrels of oil equivalent (mmboe)with minimal exposure to geological risk 98 million barrels of oil equivalent (mmboe)
Conservative and highly selective policy on exploration 97 mmboe unrisked mean potential
Focus on plays with scale and upsidep y p
Exposure to commodity price upside, especially oil price, and production growth
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Exposure to commodity price upside, especially oil price, and production growth
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Asset ReviewAsset ReviewFocus on productive fairways and mature operating environments in SE Asia / Australia
7where there is strong demand for oil and gas
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Net Reserves, Net Reserves, Resources Resources and Exploration and Exploration Potential at 31/12/10Potential at 31/12/10P t PRL 21 & Bl k 22/12 A i iti d St l U dP t PRL 21 & Bl k 22/12 A i iti d St l U d Post PRL 21 & Block 22/12 Acquisitions and Stanley UpgradePost PRL 21 & Block 22/12 Acquisitions and Stanley Upgrade
EXPLORATION POTENTIALUnrisked Mean
CONTINGENT RESOURCESProven + Probable
RESERVESProven + Probable Unrisked MeanProven + ProbableProven + Probable
1 Reduced to allow for CNOOC participation at 51%2 Net of production through 31 December 2010
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Total Total reserves and resources reserves and resources 98 98 mmboemmboe Exploration potential Exploration potential 97 97 mmboemmboe
p g3 Subject to reduction to allow for PNG State Nominee participation at 22.5%
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Net Production Net Production Forecast Forecast All Reserves and ResourcesAll Reserves and Resources
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Maari Maari / Manaia Fields / Manaia Fields New ZealandNew ZealandOn stream March 2009
10producing over 16 producing over 16 mmbommbo and US$1.4 billion in revenue to dateand US$1.4 billion in revenue to date
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Maari Development ConceptMaari Development Concept
Production permit covering Maari and Manaia through December 2027 with ability to extend Design plateau production rate 35,000 bopd Wellhead platform allows well intervention without need to import a rig Platform is re-useable at end of field life Platform is re-useable at end of field life Workover rig and coiled tubing unit permanently on platform or at shorebase Spare capacity on platform for additional wells to access upside reserves Back-up systems in well completion and process stream for flow assurance
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FPSO has 600,000 barrel storage; designed to be permanently moored Option to purchase FPSO Raroa in April 2013 for US$33m nominal value US$250m
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Maari Key PointsMaari Key Points
Maari Moki zone developed with 5 producer wells and 3 water injectors 60 mmborecoverable reservesrecoverable reserves
Nameplate capacity of facilities 35,000 bopd
Production to date 17.0 mmbo, generating gross revenue of over US$1 billion since March 2009March 2009
High quality crude receiving premium to dated Brent price
Successful appraisal / development wells drilled from platform on secondary zones M2A sands and Manaia Mangahewa formation, both wells equipped for production
Focus now on production optimisation and Greater Maari Area development
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Maari Field Development AssetsMaari Field Development Assets
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Maari /Manaia Upside PotentialMaari /Manaia Upside Potential
14Potential to increase recoverable reserves from 60 mmbo to 80 100 mmbo
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PEP 51313 PEP 51313 New ZealandNew Zealand2,595 sq km block with 5 year term, logical extension of Maari / Manaia
PEP 51313:
HZN 30%
Todd 50% (Op)
CUE 20%
15deep prospect and lead inventory in proven play-types
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China 22/12 China 22/12 Discoveries and ProspectsDiscoveries and Prospectspp176 mmbo-in-place discovered...
Block 22/12 Post-CNOOC Back-in:
HZN 26.95%
CNOOC 51.00% (Op)CNOOC 51.00% (Op)
ROC 19.60%
Majuko Corp 2.45%
16with further exploration potential
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Block 22/12 Phased Development SchemeBlock 22/12 Phased Development Schemepp
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Block 22/12 Development Status and TimelineBlock 22/12 Development Status and Timelinepp
Basic engineering and design complete
Project ~10% complete
Over half of US$300m project cost contracted out at fixed price, under budget so farOver half of US$300m project cost contracted out at fixed price, under budget so far
In field pipeline installation February 2012
WHPs and PUQB installation May
Platform topsides installation mid August
Exploration drilling (3 wells) July October
Development drilling (11 wells) October 2012 May 2013
Target first oil December 2012
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WZ 12WZ 12--8E Early Production Concept8E Early Production Conceptyy
WZ121PUQBL d bil d ti
NOEDMobileProduction Platform
Leased mobile production platform
Flexible pipelineProductionPlatform Flexible pipeline Initially up to three production
wells
Run extended DST or pilot production
Drill more wells (4-5) depending on production performance wells
Consider permanent WHP
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Papua New GuineaPapua New GuineaUptick in industry activity, with large projects gaining traction
20 major gas aggregation play emerging in Western Corridor / Offshore
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PRL 4 and PRL 21 PRL 4 and PRL 21 Papua New GuineaPapua New Guinea
PRL 4:
HZN 50% (Op)
Talisman 50%
PRL 21:
HZN 45% (Op)
Talisman 40%
Kina 15%Kina 15%
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Stanley Field Development StatusStanley Field Development Statusy py p
Stanley-2 and -4 development wells successfully drilled with good results
Reserves certified, with 30% upgrade to pre-drill volumes
FEED completeFEED complete
Field production facility site and access near complete; plant supplier selected
Condensate export pipeline route selected and currently being surveyed
Condensate storage facility site in Kiunga near complete
Condensate loadout location on Fly River selected
Horizon Oil FID presentation planned early 2012
Production Development Licence application 1H 2012
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Stanley Development ProjectStanley Development Projecty jy j
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ElevalaElevala--2 Well and Camp Site2 Well and Camp Site
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HZN Share Price Catalysts for ReHZN Share Price Catalysts for Re--ratingratingyy gg
Announcement of reserves based lending facility
Achievement of construction milestones on Block 22/12 development
Successful appraisal drilling on Elevala and Ketu discoveries in PRL 21 Successful appraisal drilling on Elevala and Ketu discoveries in PRL 21
Progress on gas sales to regional PNG consumers and Talisman aggregation scheme
Final Investment Decision on Stanley condensate stripping project
Strategic expansion of PNG acreage position
Exploration success Exploration success PMP 38160, Maari /Manaia 2 wells PEP 51313, New Zealand Pike, Matariki, Te Whatu, Pukeko 1 well
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PNG Tingu Block 22/12 WZ6-12 close-in and deeper prospects 3 wells
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Please visit the Horizon Oil website Please visit the Horizon Oil website www.horizonoil.com.auwww.horizonoil.com.au to to see:see:--
Detailed Investor PresentationDetailed Investor PresentationDetailed Investor PresentationDetailed Investor Presentation
Latest Latest Quarterly ReportQuarterly Report
Analyst reports on HZNAnalyst reports on HZN
Level 7, 134 William St, Woolloomooloo NSW 2011Tel: +612 9332 5000Fax: +612 9335 5050
The reserve and resource information contained in thisannouncement is based on information compiled by Alan Fernie(Manager Exploration and Development). Mr Fernie (B.Sc), who is amember of AAPG, has more than 35 years relevant experience withinthe industry and consents to the information in the form and context in
hi h itEmail: [email protected] which it appears.