Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (August 2013)
71 slides from Hibiscus Petroleum Bhd's investor presentation, August 2013
Slide 1: Investor Presentation: Moving Towards Sustainable Growth
Investor Presentation Moving Towards Sustainable Growth 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, persons falling within the exemp
Slide 2: Our Story… Company Snapshot
Our Story… COMPANY SNAPSHOT Oil and Gas What Do We Do? Exploration & Production Target Area of Asia-Pacific, Middle East, Operations Norway Rex Oil & Gas Ltd (BVI), Partners 3D Oil Ltd (Australia) Manpower 28 IPO July 2011 (Bursa Malaysia) An idea becomes reality: Headquarters Kuala Lumpur Malaysia’
Slide 3: Aiming Higher
Aiming Higher Profit Technology • To be the premier Malaysian IOC and a • To strengthen our position in respected E&P Asia Pacific by leveraging on company • Identified and long standing regional acquired a Qualifying relationships Asset that delivered a • To develop a balanced fair return to IPO po
Slide 4: Company Growth
Company Growth Private and Confidential Creating Value Through Our Knowledge And Experience 4
Slide 5: Private and Confidential Creating Value Through Our Knowledge And Experience
Private and Confidential Creating Value Through Our Knowledge And Experience 5
Slide 6: Hibiscus Petroleum's Investment Approach: Value Creation in E&P
Value Creation in E & P Decreasing Risk $/boe, risked March 2013 RESERVES PROSPECTIVE CONTINGENT Joint Venture with INVESTMENT APPROACH HIBISCUS PETROLEUM’S RESOURCES Rex RESOURCES High Impact Advanced Highest value Exploration creation in Asia Pacific takes place in the exploration phase when HIREX
Slide 7: Share Price Performance To Date
Share Price Performance To Date 3.500 Additional 3D Oil and Concessions VIC/P57 in Norway Transaction 3.000 and RAK Completion of Subscription and Proposed HIREX JV Shareholders Farm-in Formed Approve 2.500 Lime Deal Price (RM) 2.000 SC Approve Lime Deal 1.500 Lime Transaction 1.000 0.500 Share + Wa
Slide 8: Hibiscus in the news
Hibiscus in the news Private and Confidential Creating Value Through Our Knowledge And Experience 8
Slide 9: Analysts' Reports
Analysts’ Reports Issued on 28 June 2013 Issued on 4 July 2013 Place Your Bets Here Thirsting for Oil Share value ranges between : Technical Buy : • RM1.18 if Oman drilling campaign is • Resistance : RM1.61 unsuccessful, and • Support : RM1.89 in the near term, based • RM2.77 if Oman drilling is
Slide 10: Existing Concessions
Existing Concessions RAK Norway ONSHORE SHARJAH OFFSHORE 503 / 503B RAK OFFSHORE OMAN BLOCK - 50 United Arab Emirates & 498 Oman 616 T/49P VIC/P57 Australia For more information on each asset, please refer to company booklet Private and Confidential Creating Value Through Our Knowledge And Experienc
Slide 11: Lime: Key Operational Highlights
Lime: Key Operational Highlights EXPLORATION OF LARGE-SIZED FIELD – OMAN BLOCK 50 Drilling 2 wells starting October Estimated Prospective 2013 Resources : • Long lead items have been purchased • Drilling rig contract being ~160 finalized million barrels 503 / 503B ANTICIPATED GROWTH OF NORWEGIAN ASS
Slide 12: Oman Block 50: Prospects
Oman Block 50: Prospects Oman Peninsular Oman Mainland Masirah North North Masirah Island MNN MNN 2013 Pseudo 3D MNE MNE Seismic Outline Masirah North East Masirah North Masirah-1 GA Sth GA Sth Gravity Seeps GA South K1 North Maimun-1 Conventional Unrisked Best Estimate Recoverable Prospect/lead Pro
Slide 13: 3D Oil: Key Operational Highlights … 1
3D Oil : Key Operational Highlights … 1 DEVELOPMENT ASSET – VIC/P57 Production expected to begin in early 2015 • Production license was submitted to Australian MOPU government for approval in May 2013 An all-offshore development concept 9 Proven + Probable was selected for West Reserves Seahorse cer
Slide 14: 3D Oil: Key Operational Highlights … 2
3D Oil : Key Operational Highlights … 2 VIC/P57 2012 2013 2014 2015 Activity Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Key Regulatory Approvals 15 months Commonwealth: Key Approvals Finalised State: NONE Follow-on Engineering Support Developme
Slide 15: HIREX: Legal Structure
HIREX: Legal Structure Rex International HIREX: Holding BVI Ltd Technology License for 11 countries Rex South East Asia Ltd Shareholders’ Funds: US$ 10 mln Located in Kuala Lumpur Directors: Dr. Karl Lidgren Mans Lidgren Dr. Kenneth Pereira Joyce Vasudevan Rex Technology Ainul Jamal - Executive Dire
Slide 16: HiRex Petroleum: Targets & Business Model
HiRex Petroleum : Targets & Business Model TARGETS 20 - 40 At least 3opportunities opportunities to be identified for to be selected for screening / year investment / year HIREX REX HIREX REX HIREX Identify Data undergoes Finalise concession owner initial Rex Conventional G&G Detailed VD on Concessi
Slide 17: Rex Virtual Drilling
Rex Virtual Drilling Rex Virtual Drilling is a software package which re-analyses the low frequency spectrum of existing seismic data looking for increased amplitude signals at the resonant frequency of oil filled pore spaces. TESTING The technology is able to : • increase the probability of success
Slide 18: Rex Virtual Drilling: 2D
Rex Virtual Drilling: 2D CLOSEUP CLOSEUP Hydrocarbon Hydrocarbon Hydrocarbon fluid fluid fluid Column: 85m Column: 90m Column: 85m Risk Category Risk Factor Conventional Rex VD Risking P* Trap P Trap Geometry 0.60 0.95 REX Virtual Drilling© P Seal 0.80 0.99 Rex Virtual Drilling provides an estimatio
Slide 19: Rex Virtual Drilling: 3D
Rex Virtual Drilling: 3D Oman 3D 1400ms 1480ms 1520ms 1560ms About 315 meters or 144 millisecs of VD column Crestal Top Near Base @ 1560ms) 1640ms Oman 3D Anomaly starts at 1520ms 1400millisec and extends down to about 1560millisec along western downthrown flank of structure Eastern downthrown fault
Slide 20: Fundraising: Hibiscus Petroleum's Investment Approach
Fundraising Decreasing Risk $/boe, risked March 2013 RESERVES PROSPECTIVE CONTINGENT Joint Venture with INVESTMENT APPROACH RESOURCES HIBISCUS PETROLEUM’S RESOURCES Rex High Impact Advanced In 2013/ 2014, Hibiscus Highest value Exploration creation in Asia Pacific takes place in the Petroleum Berhad
Slide 21: Why a Production Asset?
Production Asset WHY A PRODUCTION ASSET? 1. Establish Hibiscus as a premier IOC 2. For business sustainability 3. Revenue generating 4. Operatorship Private and Confidential Creating Value Through Our Knowledge And Experience 21
Slide 22: Fund Raising Objectives
Options Objective Asset Type Timeline Rationale 1. Establish Hibiscus as the largest Part acquisition of Malaysian IOC shares in IIOC Production Q2-Q4 2. Hibiscus becomes cashflow positive FUND RAISING Option 1 operating in (25k bbls/day) 2013 3. Domestic operatorship possible Malaysia 4. Low risk i
Slide 23: Our Knowledge & Experience
Our Knowledge & Experience • 200 years + experience MANAGEMENT TEAM • Diverse team with regional experience Joyce Vasudevan - CFO BOARD OF DIRECTORS Pascal Hos – Head of Petroleum Engineering Iwan Abdul Majid – Head of New Ventures Zainul Rahim bin Mohd Zain (Chairman) David Richards – Head Geologis
Slide 24: Capital Structure & Shareholder Profile
Capital Structure & Shareholder Profile Capital Structure : 31 July 2013 Shareholding Structure: 31 July 2013 Price Total Mkt Cap No of Shares % of Shares Shareholder Profile Number RM’000 (in million) Total Number 1.45 451,721,745 654,996 IPO Current Current of Shares 83.61 83.61 18.51% Management
Slide 25: Hibiscus Petroleum: Busy Year Ahead
Hibiscus Petroleum : Busy Year Ahead A busy year of high impact initiatives at corporate and operational level to meet shareholder expectations …. 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Identify and acquire producing asset or company Hibiscus with producing assets Oman Drilling (2 Well
Slide 26: CRPS: Overview (Up to USD 40m)
CRPS : Overview (Up to USD 40m) Price Fixed at conversion premium ≤10% over the 5-day Payment of Funds Independent VWAMP share or RM1.60, 3 BD after signing Custodian whichever is higher subscription agreement <RM15m 10% RM15m to <RM30m 7.5% Can take 10 – 12 business RM30m to <RM45m 5.0% days from d
Slide 27: Exploring New Frontiers
Exploring New Frontiers 2015 2013 is set to be a defining year for 2014 Hibiscus! 2013 “We are unconventional and do not always trek trodden paths but where there is no path, we hope to leave a trail.” 2012 2011 Private and Confidential Creating Value Through Our Knowledge And Experience 27
Slide 28: Investor Booklet
Investor Booklet Moving Towards Sustainable Growth 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, persons falling within the exempted c
Slide 29: Content
Content A. HIGH IMPACT EXPLORATION ASSETS B. ACCESS TO LEADING EDGE TECHNOLOGIES C. HIREX PETROLEUM SDN BHD D. PROFILES OF BOARD & MANAGEMENT E. CRPS TERMS AND CONDITIONS Creating Value Through Our Knowledge And Experience 29
Slide 30: High Impact Exploration Assets
HIGH IMPACT EXPLORATION ASSETS Private and Confidential Creating Value Through Our Knowledge And Experience 30
Slide 31: Oman Block 50 Offshore
Oman Block 50 Offshore Working Interest: 64% Lime (22.4% Hibiscus) Country: Oman Term (Effective Date): 3 + 3+ 20 years (February 2011) Size/ Depth: 16000km2 / 10m – 150m Update: Long lead items have been purchased and drilling contract being finalised Forward Plan: (2013) Two well-drilling programm
Slide 32: Block 50 G&G Summary
Block 50 G&G Summary • Exploration & Production Period of the lease of Block-50 is 3+3+20, signed March 2011 • Original Work Program Commitment was 1000km 2D Seismic and 250km2 3D Seismic • Acreage unproven for hydrocarbon accumulations • Since HPB bought into Lime and Block-50 (Masirah Oil Ltd) the
Slide 33: Workprogram Objectives, Strategy and Prospect Identification
Workprogram Objectives, Strategy and Prospect Identification Workprogram Objectives and Strategy Oman Peninsular • Conduct quality seismic acquisitions safely and responsibly Oman • Ensure quality of seismic processing and reprocessing Mainland Masirah North North Masirah Island • Map and identify a
Slide 34: Virtual Drilling Results … 1 (Oman Block 50)
Virtual Drilling Results … 1 (Oman Block 50) Oman 3D 1400ms 1480ms 1520ms 1560ms About 315 meters or 144 millisecs of VD column Crestal Top Near Base @ 1560ms) 1640ms Oman 3D Anomaly starts at 1520ms 1400millisec and extends down to about 1560millisec along western downthrown flank of structure East
Slide 35: Virtual Drilling Results … 2 (Oman Block 50)
Virtual Drilling Results … 2 (Oman Block 50) MNN MNE Masirah North North & Masirah North East 97-07 MNN OHOC-04 MNN MNE 97-05 MNN-1 MNN-2 MNE-1 MNN MNE VD - OHOC-04-36A Masirah North North Structure already well defined even without additional seismic. Masirah NE location is stratigraphic and only d
Slide 36: Virtual Drilling Results … 3 (Oman Block 50)
Virtual Drilling Results … 3 (Oman Block 50) Masirah North North & Masirah North East Psuedo 3D and Vintage 2D Coverage Whitened areas around acquisition edge is where seismic is not full fold. These areas were disregarded for VD. Area where water depth of less than 15m limited acquisition of pseudo
Slide 37: Volumetrics & Prospect Ranking (Oman Block 50)
Volumetrics & Prospect Ranking (Oman Block 50) De-Risked DHI De- Ranking Exploratio volume Risked with DHI n Well volume Location Prospect/lead Play type Petroleum system CoS Volumes DHI COS VD Column well T.D. Oil cases risked Oil Source Migration Trap Reservoir Oil Quality mmbbl mmbbl AVO DHI VD m
Slide 38: RAK Offshore
RAK Offshore Working Interest: 59% Lime (20.7% Hibiscus) Country: United Arab Emirates Term (Effective Date): 2 + 2+ 20 years (May 2010) Size/ Depth: 1200km2 / 100m – 300m Update: Several structural and stratigraphic prospects have been identified Forward Plan: (2013) Preparation for drilling Farm-o
Slide 39: Sharjah Offshore
Sharjah Offshore Working Interest: 100% Lime (35% Hibiscus) Country: United Arab Emirates Term (Effective Date): 2 + 1 + 20 years (June 2011) Size/ Depth: 1500km2 / Up to 350m Update: Mapped drill-ready prospects in both structural and stratigraphic traps Forward Plan: (2013) Develop farm-in partner
Slide 40: RAK Onshore
RAK Onshore Working Interest: 100% Lime (35% Hibiscus) Country: United Arab Emirates Term (Effective Date): 2 + 2 + 20 years (April 2012) Size: 886km2 Update: Seismic data API planned over large structural features identified by Gravity – Magnetics Forward Plan: (2013) Develop farm-in partner (2014)
Slide 41: VIC/P57
VIC/ P57 Working Interest: 50.1% (Hibiscus) + 49.9% (3D Oil) Country: Australia Term: Drill 2 wells by May 2016 Size/ Depth: 460km2 / 10m – 150m Update: Production License submitted Felix for approval in May 2013 Sea Lion West Seahorse Forward Plan: (2013) Obtain Production License & FID West Seahor
Slide 42: Access to Leading Edge Technologies
CLOSEUP Hydrocarbon fluid Hydrocarbon fluid Column: 90m Column: 85m Hydrocarbon fluid Column: 85m ACCESS TO LEADING EDGE TECHNOLOGIES Private and Confidential Creating Value Through Our Knowledge And Experience 42
Slide 43: What is Rex Technology?
What is Rex Technology? The Rex Technology package comprises 3 components: 1. Rex Gravity© - to detect possible hydrocarbon accumulations through use of satellite acquired data 2. Rex Seepage© - to verify hydrocarbon presence through the use of satellite acquired data 3. Rex Virtual Drilling© - to
Slide 44: Rex Gravity
Rex Gravity Rex Gravity© detects possible hydrocarbon accumulations through use of satellite acquired data Private and Confidential Creating Value Through Our Knowledge And Experience 44
Slide 45: Rex Gravity
Rex Gravity Rex Gravity © study of Strait of Hormuz • Based on satellite gravity data • Water depth compensated • High correlation with known hydrocarbon accumulations • Very cost efficient Private and Confidential Creating Value Through Our Knowledge And Experience 45
Slide 46: Rex Seepage
Rex Seepage Rex Seepage © study of Oman Block 50 • Rex Seepage© verifies hydrocarbon presence through the use of satellite acquired data • Based on thermal imaging • Advanced analysis of sea surface temperature. An analysis of the thermal infrared spectrum emitted from top (< 0.1mm) ocean layer • Th
Slide 47: Rex Gravity + Rex Seepage
Rex Gravity + Rex Seepage Rex Gravity © study of Oman Block 50 Rex Seepage © study of Oman Block 50 Private and Confidential Creating Value Through Our Knowledge And Experience 47
Slide 48: Rex Virtual Drilling - Workflow
Rex Virtual Drilling - Workflow Rex Virtual Drilling© predicts the geological presence or absence of hydrocarbons through the evaluation of seismic data Private and Confidential Creating Value Through Our Knowledge And Experience 48
Slide 49: The Benefits of Virtual Drilling
The Benefits of Virtual Drilling The industry average global success rate for exploration drilling is approximately 15% or one successful discovery for every seven wells drilled. Before drilling, geologists calculate a metric called the Geological Chance of Success (GCOS) based on the combined p
Slide 50: Application of Virtual Drilling
Application of Virtual Drilling Below is a seismic representation of geological stratigraphy. Conventional analysis results in a low probability of discovery. Rex Virtual Drilling provides an additional attribute of data which significantly improves the probabilities associated with the majority o
Slide 51: Redefining the Search for Oil
Redefining the Search for Oil Rex Virtual Drilling Method CLOSEUP Hydrocarbon fluid Hydrocarbon fluid Hydrocarbon Column: 90m Column: 85m fluid Column: 85m Rex Virtual Drilling provides an estimation of the volume of oil present as well as more precise drilling locations. It also improves the chance
Slide 52: Rex Technology: Enhancing The Prospect Of Oil Discovery
Rex Technology: Enhancing The Prospect Of Oil Discovery Over the last 12 months, North Energy (Lime’s partner in Norway) tested Rex Virtual Drilling on 8 previously drilled wells . All tests yielded accurate results. As a result of successful testing, on 20th February 2013, North Energy, an E&P
Slide 53: Rex Technology: Geographical Coverage
Rex Technology: Geographical Coverage EXCLUSIVE USE: ON A PROJECT BASIS: FIRST RIGHT OF REFUSAL: (through Lime) (through Lime) (through HIREX JV) Iran Qatar Norway Malaysia Australia Jordan Syria Thailand New Zealand Kuwait Turkey Indonesia Philippines Iraq Yemen Myanmar Brunei Lebanon Palestine Cam
Slide 54: HiRex Petroleum Sdn Bhd
HIREX PETROLEUM SDN BHD Private and Confidential Creating Value Through Our Knowledge And Experience 54
Slide 55: HiRex Petroleum: Business Model
HiRex Petroleum : Business Model HiRex Business Objective : To pursue high impact E & P opportunities in the Asia Pacific region. How? • To use Rex Technology as the tool to identify and select valuable concessions in the area. • To secure equity positions in high impact exploration assets as Hi
Slide 56: HiRex Petroleum: Targets & Business Model
HiRex Petroleum : Targets & Business Model TARGETS 20 - 40 At least 3opportunities opportunities to be identified for to be selected for screening / year investment / year HIREX REX HIREX REX HIREX Identify Data undergoes Finalise concession owner initial Rex Conventional G&G Detailed VD on Concessi
Slide 57: Objectives: Creating Value For Shareholders
Creating Value For Shareholders Identify and pursue high impact/low entry cost exploration opportunities OBJECTIVES Add value to high impact/ expensive exploration opportunities (Ex: Deepwater wells) in selected, commercially attractive cases Obtain equity at ground floor level (for small stakes) or
Slide 58: Opportunity Types
Opportunity Types • Key tests to open new play trends • Availability of spec • At least 2D seismic seismic available • Brownfields with infield drilling opportunities. • Expensive developments (eg Deepwater) Creating Value Through Our Knowledge And Experience 58
Slide 59: Profiles of Board & Management
MANAGEMENT TEAM Joyce Vasudevan - CFO BOARD OF DIRECTORS Pascal Hos – Head of Petroleum Engineering Zainul Rahim bin Mohd Zain (Chairman) Iwan Abdul Majid – Head of New Ventures Dr. Kenneth Pereira David Richards – Head Geologist Zainol Izzet bin Mohamed Ishak Christopher Dyas– Head of Projects Rous
Slide 60: Board Members …. 1
Board Members …. 1 Zainul Rahim bin Mohd Zain (Malaysian) Chairman Qualifications: B.Sc. in Engineering (Mechanical), University of Western Australia. (Non-Executive) Experience: More than 30 years experience in the oil & gas exploration & production industry. Currently serves as Board member of Pet
Slide 61: Board Members …. 2
Board Members …. 2 Roushan Arumugam (Malaysian) Independent Qualifications: M.A. in English Language and Literature, St. Catherine’s College, Oxford University, Masters in Business Administration (Non-Executive) from Imperial College Business School and M.A. in Legal Studies, University of Bristol,
Slide 62: Board Members …. 3
Board Members …. 3 Tay Chin Kwang (Singaporean) Qualifications: Bachelor of Accountancy from the National University of Singapore. Certified Public Accountant and fellow member of the Independent Institute of Certified Public Accountants of Singapore. (Non-Executive) Experience: Over 22 years of exp
Slide 63: Key Management …. 1
Key Management …. 1 Mark Paton (Australian) Qualifications: B.Sc in Chemical Engineering , Leeds University, United Kingdom. Chief Business Development Experience: Over 30 years experience in oil & gas operations and projects (both offshore and onshore). Previously CEO of Cue Energy Resources Ltd, M
Slide 64: Key Management …. 2
Key Management …. 2 Dr. Pascal Hos (Dutch) Qualifications: Ph.D. in Mechanical Engineering and B.Sc. in Mechanical Engineering (both from Rice University, Houston, USA). Head of Petroleum Engineering Experience: 13 years experience in the oil & gas industry. Previously worked at at Schlumberger (USA
Slide 65: Key Management …. 3
Key Management …. 3 Elike Mawuli (Australian) Drilling Operations Qualifications: B.Eng. and Masters in Engineering Management (both from Queensland University of Technology, Australia). Manager Experience: 10 years oil & gas well drilling field experience with Santos Oil, Interoil Corporation, Oil
Slide 66: Key Management …. 4
Key Management …. 4 Thomas Jay Stensgaard (American) Project Manager, Qualifications: B.Sc. in Mechanical Engineering (South Dakota School of Mines, USA), and Masters in Business Administration (Rice West Seahorse University, Houston, USA) Development, Experience: 17 years experience in the oil & ga
Slide 67: CRPS Terms & Conditions
CRPS TERMS & CONDITIONS Private and Confidential Creating Value Through Our Knowledge And Experience 67
Slide 68: CRPS Terms….1
CRPS Terms….1 Amount of CRPS Up to RM120,000,000 (equivalent to approximately USD40,000,000) Mode of Issue Private placement without prospectus. The CRPS are to be placed out in multiple tranches and issued no later than 31 August 2013 Maturity Date 30 April 2014 Permitted Utilisation of The proceed
Slide 69: 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 70: CRPS terms….3
CRPS terms….3 Redemption In the event less than 80% of the proceeds raised (excluding interest earned) are utilised as Option 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 71: CRPS terms….4
CRPS terms….4 Condition of The redemption of the CRPS shall be subject to, and in accordance with, Section 61 of Redemption 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…
Hibiscus Petroleum — Investor Presentation (August 2013) on 6ix