Horizon Oil Limited · ASX:HZN
Horizon Oil — Investor Presentation (February 2004)
32 slides from Horizon Oil's investor presentation, February 2004
Slide 1: Horizon Oil Limited Investor Presentation
HORIZON OIL LIMITED INVESTOR PRESENTATION February 2004 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 can be given by Horizon Oil Limited that its expectations, es
Slide 2: Investment Objectives
Investment Objectives • To build Horizon Oil to a value peak within 3 – 4 years • To achieve a share price of 50 cents per share, with a stretch target of $1.00 • To provide all shareholders with the opportunity of crystallising their investment Investor Presentation February 2004
Slide 3: Peer company news
Australian Worldwide Exploration Novus Petroleum Ltd Progress on Yolla development Medco take-over offer Arc Energy NL Hardman Resources Ltd Oil production at Hovea Success offshore Mauritania Investor Presentation February 2004
Slide 4: Investment Highlights – Near-term drilling activity
Investment Highlights – 1 • Near-term drilling activity > Block 22/12 12-7 prospect; March 2004. 43 mmbo gross potential, 6.3 mmbo HZN share > Block 22/12 12-8-3 appraisal well; March 2004. To appraise 50 mmbo development, 7.4 mmbo HZN share > Block 22/12 3 contingent appraisal wells; April - May 20
Slide 5: Investment Highlights – Medium-term development programme
Investment Highlights - 2 • Medium-term development programme If pre-development work is successful, Maari and Block 22/12 in combination will deliver to HZN shareholders:- > Recoverable reserves of 11 mmbo > NPV11 of $71 m @ US$22 oil > Initial production in early 2006 of 8,000 bopd > After tax cas
Slide 6: Oil price history
US$/bbl US$bbl M ar Ja 25 26 27 28 29 30 31 32 33 34 35 -0 4 n- 15 25 30 35 20 40 M 00 ay -0 Ap 4 r-0 Ju 0 l -0 Ju 4 l-0 Se 0 p- 04 O ct -0 N 0 ov -0 Ja 4 n- Ja 01 n- 0 Oil price history Ap 5 r-0 M 1 ar -0 5 Ju l-0 M 1 ay -0 5 O ct -0 Ju 1 l -0 Ja 5 n- Se 02 p- 05 Ap N r-0 ov 2 -0 5 Ju Ja l-0 n- 2 5
Slide 7: Investment Highlights – Access to new business opportunities
Investment Highlights - 3 • Access to new business opportunities > Transaction-oriented management team > Strong deal flow in Asian region, especially in “unpopular” jurisdictions > Little competition for deals Investor Presentation February 2004
Slide 8: The Horizon Oil Team
The Horizon Oil Team BOARD RESPONSIBILITIES EXPERIENCE Fraser Ainsworth AM Chairman, Member of Audit 26 years in CSR’s resource & energy business, former MD of Delhi, Committee former MD of SAGASCO, Founder & Executive Director of Potential Energy, Chairman of Bionomics Ltd, Director of Oil Search B
Slide 9: About Oasis
About Oasis • Oasis Energy Investments Pty Ltd is a company specifically incorporated to hold an interest in Horizon Oil • Current shareholding is 149.6 million ordinary shares, equivalent to 33.1% of shares on issue • Shareholders are:- • TRT Holdings, Inc. (and associates) – controlling shareholde
Slide 10: Building the Portfolio – The Game Plan
Building the Portfolio – The Game Plan • Drill up current prospects and re-stock high potential exploration prospect inventory • Supplement exploration portfolio with lower risk ventures with current or near-term production potential • Broad approach is to build / maintain a portfolio with a spread
Slide 11: Horizon Oil's Portfolio
Horizon Oil’s Portfolio Table of Interests Maari, PEP 38413 NZ – 10% Block 22/12, China – 30% Kapul, PPL 227, PNG – 20% Investor Presentation February 2004
Slide 12: Maari Development
Maari Development Investor Presentation February 2004
Slide 13: Maari Development Planning
Maari Development Planning • Field fully appraised; development planning and design underway • Surface and subsurface concepts to be confirmed by Q1 2004 - most likely FPSO with horizontal wells and wellhead platform • FEED to follow immediately thereafter • FID Q3 2004 • Development to include flex
Slide 14: Maari Development Options
Maari Development Options Investor Presentation February 2004
Slide 15: Block 22/12 – China
Block 22/12 – China Investor Presentation February 2004
Slide 16: Block 22/12 Development Planning
Block 22/12 Development Planning • Development of 12-8 field subject to final appraisal March 2004 to confirm reservoir structure and fluid properties • Draft Overall Development Plan (ODP) prepared • Development concept includes unmanned platforms, horizontal wells, offshore dehydration and export
Slide 17: Block 22/12 Development Concept
Block 22/12 Development Concept Investor Presentation February 2004
Slide 18: Gross Reserves Per Project
Gross Reserves Per Project PEP 38413 Resources MMbbl P90 P50 P10 Mean Mean Net Total STOIIP 116.1 180.7 332 191.3 19.1 Technically recoverable 30.1 54.7 102.3 58.9 5.9 Block 22/12 Resources MMbbl P90 P50 P10 Mean Mean Net* Total STOIIP 105.6 159.3 297.6 184.5 27.1 Technically recoverable 25.7 50.3 1
Slide 19: HZN Net Resources and Value
HZN Net Resources and Value New Zealand PEP 38413 Low Medium High Recoverable Volumes MMbbl (after 2.6 5.0 9.5 economic cut-off) NPV at 11% nominal (A$million) 8.2 35.3 78.6 China Block 22/12 Low Medium High Recoverable Volumes MMbbl (after 2.6 6.3 12.5 economic cut-off) NPV at 11% nominal (A$millio
Slide 20: Sensitivities
Sensitivities PEP38413 Medium Case, Horizon Oil Interest NPV A$m @ 11% Nominal Reserves P90-P10 Oil price low-high Disc Rate 15% -8% Capex+/- 30% Opex+/- 30% Exchange Rate 0.7-0.6 US$/A$ 0 10 20 30 40 50 60 70 80 Base NPV11 = A$35.3m Block 22/12 Medium Case, Horizon Oil Interest NPV A$m @ 11% Nomina
Slide 21: Oil Production (bopd)
Net Annual Production 7000 Oil Production (bopd) 6000 Maari 22/12 5000 4000 3000 2000 1000 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 RISC report July 2003 Investor Presentation February 2004
Slide 22: Net After Tax Cash Flow
Net After Tax Cash Flow 60 200 40 150 20 100 0 $m p.a. $m 50 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 -20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 0 -40 -60 -50 -80 -100 Maari 22/12 Cumulative RISC report July 2003 Investor Presentation February 2004
Slide 23: Block 22/12 – China
Block 22/12 – China Investor Presentation February 2004
Slide 24: Block 22/12 12-7 Prospect
Block 22/12 12-7 Prospect Investor Presentation February 2004
Slide 25: Block 22/12 12-7 Prospect Amplitude Map
Block 22/12 12-7 Prospect Amplitude Map Investor Presentation February 2004
Slide 26: Papua New Guinea Acreage
Papua New Guinea Acreage Investor Presentation February 2004
Slide 27: Foreland Drilling Program
Foreland Drilling Program Investor Presentation February 2004
Slide 28: Kapul Prospect
Kapul Prospect Investor Presentation February 2004
Slide 29: Kapul Prospect
Kapul Prospect Investor Presentation February 2004
Slide 30: China – Characteristics
China – Characteristics • Horizon Oil has acreage foothold and contacts • Top-half fiscal regime • Burgeoning gas demand and massive oil importer • China aggressively seeking foreign investment upstream • CNOOC a good partner • Good companies exploring the offshore • Several offshore basins with big
Slide 31: China – Future Growth??
China – Future Growth?? RUSSIA Hailar KAZAKHSTAN MONGOLIA Songliao Junggar Turpan-Hami Jiuquan N. KOREA Tarim Bohai Ordos North Gulf S. KOREA China Qaidam CHINA North Nanyang Yellow Sea Tibet JAPAN Sichuan Subei East China Jianghan Sea Pacific Ocean TAIWAN INDIA MYANMAR Pearl River Mouth Bay of Beng
Slide 32: Work Programme Schedule
Work Programme Schedule Investor Presentation February 2004