Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (April 2014)
50 slides from Hibiscus Petroleum Bhd's investor presentation, April 2014
Slide 1: Investor Presentation: Building on Success
Investor Presentation Building on Success IMPORTANT NOTICE This presentation document is NOT a prospectus and is STRICTLY CONFIDENTIAL. The matters contained or referred to in this document are only indicative as they are subject (among others) to finalisation and the obtaining of all necessary or r
Slide 2: Table of Contents
Table of Contents 1. Introduction to Hibiscus 2. Oman Discovery 3. Year Ahead 4. Hibiscus: Investment Case 2
Slide 3: Hibiscus Story
Hibiscus Story Goal Evolution SHORT-TERM MEDIUM-TERM LONG-TERM • To identify and execute a Qualifying Asset • To strengthen our position in Asia Pacific by • To be the premier IOC in Malaysia and a that delivered a fair return to IPO investors leveraging on long standing regional respected E&P compa
Slide 4: Table of Contents
Table of Contents 1. Introduction to Hibiscus 2. Oman Discovery 3. Year Ahead 4. Hibiscus: Investment Case 4
Slide 5: Oil Discovery
Oil Discovery MARCH 2014 Completed drilling of two wells in Block 50 Oman successfully. Second well resulted in first oil discovery offshore east of Oman after 30 years. Tested light oil at a flow rate of 3000 barrels/day 5
Slide 6: Drilling Review
Drilling Review First drilling campaign under Lime Drilled 2 vertical wells : o MNN#1 – ~1000m depth (TVD) o GAS#1 – ~3000m depth (TVD) Prospects chosen based on Conventional analysis Verification by Rex Virtual Drilling. Spud date: 25th November 2013 Rig Contractor: Aban 7 Pte Ltd N
Slide 7: Table of Contents
Table of Contents 1. Introduction to Hibiscus 2. Oman Discovery 3. Year Ahead 4. Hibiscus: Investment Case 7
Slide 8: Business Strategy & Objectives
Business Strategy & Objectives Business approach comprise several pillars: To be considered a Select Human Resources premier Hire experienced and knowledgeable people 2012 – 2016 Mission Independent Oil Incentivize with ownership Company in the region Manage Risk and Optimize Capital Deployment
Slide 9: Strategy Implementation
Strategy Implementation PROSPECTIVE CONTINGENT RESOURCES RESOURCES RESERVES 41% 13% stake Exploration assets to stake fuel growth and capital HIBISCUS PETROLEUM’S INVESTMENT APPROACH • 14 opportunities in Asia 49.9% appreciation Pacific identified for 50.1% Highest value creation screening stake (
Slide 10: Assets and Activities
Assets and Activities Numbers in red indicate HIBISCUS PETROLEUM BERHAD direct ownership by (Bursa Malaysia) Hibiscus Lime (Private) 35% 3D Oil HiRex 13% 41% 50.1% (Listed- ASX) (Private) Middle East Norway VIC/ P57 49.9% RAK Offshore 59% PL 503 12.5% PL 509S* 20% VIC/ L31 49.9% Sharjah Offshore 100
Slide 11: Operations Update (Australia)
Operations Update (Australia) DEVELOPMENT ASSET – VIC/L31 MOPU Transaction concluded in January 2013 o Received approval for production license in November 2013 2P Proven + Probable Reserves + 2C Contingent Reserves 8.0 million barrels (certified by Gaffney Cline): 11
Slide 12: In the Pipeline
In the Pipeline DEVELOPMENT OF MIDDLE EAST PROJECTS More extensive exploration and development work in Oman Well to be drilled in Sharjah in 2014/2015 Seismic acquisition to be conducted in RAK Onshore Farm-out of RAK Onshore and Sharjah Positions in another 2 assets being developed ADVANC
Slide 13: Key Initiative: Balancing Our Portfolio of Assets
Key Initiative Balancing Our Portfolio of Assets 1. Building a platform of development and production assets through M&A opportunities around Asia Pacific worth around US$200m to US$250m 2. Building cash flow through early production of Block 50 Oman Plan for Success Methodology Technical Objective:
Slide 14: Table of Contents
Table of Contents 1. Introduction to Hibiscus 2. Oman Discovery 3. Year Ahead 4. Hibiscus: Investment Case 14
Slide 15: Rex Virtual Drilling
Rex Virtual Drilling Rex Virtual Drilling is a software package that analyses seismic data in order to:- 1. Decrease the probability of drilling a dry hole 2. Shorten the time required to commercialise viable fields Used to confirm prospects and well locations identified through conventional G&G
Slide 16: Rex Virtual Drilling…2
Rex Virtual Drilling…2 Conventional Seismic Interpretation Rex Virtual Drilling Interpretation Risk Category Risk Factor Conventional Rex VD Risking Principle P Trap Geometry 0.60 0.95 P Trap • An advanced seismic resonance evaluation P Seal 0.80 0.99 scheme P Reservoir Presence 0.70 0.99 • Able to
Slide 17: Test Results in Norway
Test Results in Norway CONVENTIONAL REX VIRTUAL BENEFITS METHODS DRILLING Commercial discoveries 16 Tests predicted a positive result. Detects the presence of from frontier o 11 were drilled resulting in hydrocarbon accumulations as explorations: commercial discoveries well as migration paths o
Slide 18: Milestones Achieved in 2013/14
Milestones Achieved in 2013/14 Jan/Feb 2014: November Added 6 new concessions Upcoming Initiatives to Lime Norway portfolio 2013: Early Production of oil from Received Block 50 by end 2014. production license and FDP approval One well drilling project in for VIC/P57 Sharjah (2014/2015) March 201
Slide 19: Closing Comments
Closing Comments Growth Experience Experienced and Fast growing company knowledgeable management Strategy Why Shareholders invest in Quality, loyal and Clear and simple Hibiscus? distributed shareholder strategy base Technology & Track Record Risk Management Established record of finding Access to g
Slide 20: Supporting Information
(Company number : 798322-P) Supporting Information Building on Success IMPORTANT NOTICE This presentation document is NOT a prospectus and is STRICTLY CONFIDENTIAL. The matters contained or referred to in this document are only indicative as they are subject (among others) to finalisation and the ob
Slide 21: Capital Structure
Capital Structure Capital Structure : 31 March 2014 Shareholding Structure: 31 March 2014 Price Mkt Cap No of Shares Total Number % of Shares (RM) RM’000 (in million) Shareholder Profile Total Number of IPO Current Current 1.88 532,586,742 1,001,263 Shares 83.61 83.61 15.70% Management Team Warrants
Slide 22: Block 50 Oman
Block 50 Oman Working Interest: 64% Lime (22.4% Hibiscus) Country: Oman Term (Effective Date): 3 + 3+ 20 years (March 2011) Size/ Depth: 16900km2 / 10m – 150m Update: Drilling rig mobilized Forward Plan: First successful flow test from East Oman in 30 years. Light flow rate of up to 3,000 stock tank
Slide 23: 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: (2014) Preparation for drilling Farm-o
Slide 24: Sharjah Offshore
Sharjah Offshore Working Interest: 100% Lime (35% Hibiscus) Country: United Arab Emirates Term (Effective Date): 3 + 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 (20
Slide 25: RAK Onshore
RAK Onshore Working Interest: 100% Lime (35% Hibiscus) Country: United Arab Emirates Term (Effective Date): 3 + 2+ 20 years (April 2012) Size: 886km2 Update: Seismic data API planned over large structural features identified by Gravity – Magnetics Forward Plan: (2014) Conduct seismic activities 25
Slide 26: 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 offered in Felix November 2013 Sea Lion West Seahorse Forward Plan: (2014) Obtain FID West Seahorse (2015) Drill exploration wel
Slide 27: Norwegian Continental Shelf
Norwegian Continental Shelf • Rex Virtual Drilling blind test results in Norway have been very encouraging • The Norwegian Gov’t has recently awarded interests in 5 licences in Norway in January 2014 • Lime Norway currently has interests in 14 licences in Norway (4 of which are subject to regulatory
Slide 28: HiRex Petroleum: Introduction
HiRex Petroleum: Introduction – HiRex Petroleum is a joint venture between Hibiscus Petroleum and Rex International Holdings – We are an E&P company which is primarily focused on high-impact exploration and marginal field development in Asia-Pacific and Oceania – HiRex differentiates itself from oth
Slide 29: HiRex: Legal Structure
HiRex: Legal Structure HIREX: Technology License for 11 countries Shareholders Fund: USD 10 mln Located in Kuala Lumpur Directors: Dr. Karl Lidgren Mans Lidgren Dr. Kenneth Pereira Joyce Vasudevan Ainul Jamal - Executive Director 29
Slide 30: HiRex: Business Model
HiRex: 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 Concession with 2D/ 3D screen
Slide 31: How can HiRex facilitate?
How can HiRex facilitate? Typical Traditional Exploration/Appraisal Workflow tends to be Sequential Source Reservoir Basin Maturity Structure Migration Kitchen Potential Risk Analysis Well Proposal Evaluation Study Identification Evaluation Evaluation Evaluation • Sometimes early phase decisions are
Slide 32: How can HiRex facilitate?
How can HiRex facilitate? • Benefits of using Rex Virtual Drilling™ – The ability of Rex Virtual Drilling™ (RVD) to directly identify liquid hydrocarbons on seismic combined with the extensive local E&P knowledge and experience of Vestigo Petroleum can be very powerful for enhancing understanding of
Slide 33: How can HiRex facilitate?
How can HiRex facilitate? Exploration/Appraisal/Development Workflow with Rex Virtual Drilling incorporated Basin Evaluation Source Well Proposal Kitchen Evaluation Rex Virtual Drilling™ Structure Risk Analysis Identification Reservoir Migration Potential Evaluation Evaluation 33
Slide 34: 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) 34
Slide 35: 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 36: Rex Gravity
Rex Gravity Rex Gravity© detects possible hydrocarbon accumulations through use of satellite acquired data 36
Slide 37: 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 37
Slide 38: Rex Seepage
Rex Seepage Rex Seepage • 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 • Thin oil layer will absorb
Slide 39: 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 39
Slide 40: 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 41: 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 42: 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 43: 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 44: Profiles of Board & Management
MANAGEMENT TEAM Joyce Vasudevan - CFO BOARD OF DIRECTORS Pascal Hos – Head of Petroleum Engineering Zainul Rahim bin Mohd Zain (Chairman) David Richards – Head Geologist Dr. Kenneth Pereira (Managing Director) Christopher Dyas– Head of Projects Zainol Izzet bin Mohamed Ishak Thomas Stensgaard– Proje
Slide 45: Board Members 1
Board Members …. 1 Chairman Zainul Rahim bin Mohd Zain (Malaysian) Chairman (Non-Executive) 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 serv
Slide 46: 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 47: 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 48: 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 49: 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 50: Key Management 3
Key Management …. 3 Azleen Rosemy Ahmad (Malaysian) • General Manager, Corporate Finance Qualifications: B.Sc. in Actuarial Science and Finance (Wharton Business School, University of Pennsylvania, USA) and Masters in Business Administration (University of Nottingham, United Kingdom). Experience: 20
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