Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (January 2016)
45 slides from Hibiscus Petroleum Bhd's investor presentation, Jan 18, 2016
Slide 1: Investor Presentation January 2016
Investor Presentation January 2016 Before proceeding to read further, please refer to the Disclaimer section of this presentation. Hibiscus Petroleum Berhad
Slide 2: Table of Contents
Table of Contents Section 1: Introduction Section 2: Investment Highlights Section 3: Industry Outlook Section 4: Strategy Section 5: Financial Performance and Operational Priorities Appendix A: Core Assets: Production and Development with Exploration Upside Appendix B: Team Biographies Appendix C:
Slide 3: Section 1 Introduction
Section 1 Introduction 2
Slide 4: About Us
About Us SOUND BUSINESS ETHICS HIBISCUS Committed to high standards of corporate governance and building a business based on a strong technical and commercial foundation. PETROLEUM TOWARDS A BALANCED PORTFOLIO OF ASSETS IS MALAYSIA’S Rapidly aggregated production, development and FIRST LISTED INDEPE
Slide 5: Vision and Mission
Vision and Mission Moving Towards Production and Development To be a Respected and Valuable Vision Independent E&P Company Core Mission Strategic Mission 2016-2018 • 50 MMbbls 2P reserves • Additional 50 MMbbls 2P (producing) with existing core reserves/2C resources through Mission • assets in UK an
Slide 6: Section 2 Investment Highlights
Section 2 Investment Highlights 5
Slide 7: Hibiscus is a highly attractive Oil & Gas company
Hibiscus is a highly attractive Oil & Gas company 1 2 Clear execution strategy for the current cycle Balanced portfolio of assets across in the sector with well-defined near-term exploration, development and production Clear Attractive Core assets in the development and targets over the next 1
Slide 8: Hibiscus Strategy
1 Hibiscus Strategy Building a robust and balanced portfolio in our core areas EXPLORATION DEVELOPMENT PRODUCTION VIC/L31; Anasuria Cluster2 VIC/P57 West Seahorse 7 Petroleum Titles under Hydra1 Value accretion ($/boe, risked) Highest value creation takes place in the exploration phase when discover
Slide 9: Hibiscus has transformed from a SPAC into a full-fledged E&P company
1 Hibiscus has transformed from a SPAC into a full-fledged Oil & Gas exploration and production company Exploration Focus Production/Development focus RM 6 August 2015: 15 July 2011: 10 April 2012: 8 January 2013: 7 July 2014: 10 November 2015: 11 November 2015: 3.00 Listed on Bursa Completed its Qu
Slide 10: Overview of core assets base – Attractive portfolio of assets
2 Overview of core assets base – Attractive portfolio of assets Australia (Hydra)1 7 petroleum titles under the proposed acquisition of Hydra assets United Kingdon (Anasuria Cluster) Exploration and Development assets Cook Field 100.0% stake post completion Production asset 2P Reserves/2C Re
Slide 11: A highly experienced management team with a proven track record
3 A highly experienced management team with a proven track record of success A constellation of senior industry BOARD OF MANAGEMENT professionals with more than 250 years DIRECTORS TEAM experience in the upstream business Skills and experience from a range of Business Builders industries and sectors
Slide 12: Hibiscus' EV/2P Reserves – Attractive Valuation
4 Hibiscus’ EV/2P Reserves – Attractive Valuation Creating sustainable growth Hibiscus 2P/2C Oil Hibiscus + Anasuria 2P/2C Oil Hibiscus + Anasuria + Hydra assets 2P/2C Reserves/Resources (MMbbls)1 Reserves/Resources (MMbbls)1 Oil Reserves/Resources (MMbbls)1 6.5 1.5 6.5 1.5 3 17.0 8.0 28.2 45.2 MMbb
Slide 13: Hibiscus' EV/2P Reserves – Trading at a significant discount to peers
4 Hibiscus’ EV/2P Reserves – Attractive Valuation Trading at a significant discount to peers EV/2P Reserves for Comparable Producing Peers US$/bbl 14.1 12.9 7.6 6.8 Singaporean Average: 6.1 Australian Average: 5.7 5.6 4.9 5.0 4.5 4.3 3.5 2.8 2.4 2.1 1.6 1.0 Horizon Oil Lonestar Drillsearch New Beach
Slide 14: Robust pipeline of actionable opportunities
5 Robust pipeline of actionable opportunities New Opportunities in Core Areas • Oil supermajors and governments • Australia • Successful execution of the Anasuria project over • Additional stranded assets with 2P time will form the foundation and establish a track reserves/2C resources available wit
Slide 15: Section 3 Industry Outlook
Section 3 Industry Outlook 14
Slide 16: Demand/Supply balance indicates the narrowest gap since 2013
Demand/Supply balance indicates the narrowest gap since 2013 and a potential shortfall within the next 12 months MMbbls/day Demand/Supply Balance until 4Q16 MMbbls/day 98 3.5 96 2.5 94 92 1.5 90 88 0.5 86 84 -0.5 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 Impl. Stock Ch. & Misc (RHS) Demand Supply1 Sou
Slide 17: Crude oil expected to return to US$46-68/bbl by 2018
Analyst forecasts and the forward market indicate that crude oil is expected to return to US$46/bbl-US$68/bbl by 2018 Brent Crude Price Performance Commentary US$/bbl Our strongly held view is that high-cost deepwater 160 offshore and Canadian oil sands will be necessary to meet demand. As a resul
Slide 18: Section 4 Strategy
Section 4 Strategy 17
Slide 19: Investment strategy
Investment strategy • Reprocessing and interpretation of data for assets already owned • Enhancing the producible volume and/or extending the producing life of the assets Organic Growth • Acquiring further assets either through acquisitive or licensing processes Strategy • Embarking on infill drilli
Slide 20: Section 5 Financial Performance and Operational Priorities
Section 5 Financial Performance and Operational Priorities 19
Slide 21: Operational performance
Operational performance Core 2P Reserves Base Production (Annual and Run Rate) MMbbls Annual Run Rate Production Production (MMbbls/year) (bbls/day) 15.0 20,000 43.7 15,305 15,000 17.0 10.0 10,236 10,000 20.2 5.0 3.8 3.7 5,000 3,262 3,280 1.8 1.8 6.5 6.5 2.0 1.9 3.3 1.2 1.2 0.0 0 2011A 2012A 2013A 2
Slide 22: Operational priorities – Key near-term focus areas
Operational priorities – Key near-term focus areas Delivering on our mission with clearly defined near-term targets Achieve Material Cashflow • Production of 10,000 bbls/day Sustainability Est. • Secure 50 MMbbls 2P reserves 2018 Deliver Value Est. 1H • Recognize the USD valuation of our global asse
Slide 23: Appendix A Core Assets: Production and Development with Exploration Upside
Appendix A Core Assets: Production and Development with Exploration Upside United Kingdom Australia 22
Slide 24: Production in the North Sea, UK
Production in the North Sea, UK A balanced portfolio of producing assets with significant upside The Anasuria Cluster Asset Name: Anasuria Cluster, comprising: Norway • Cook (38.6%) Producing Field Anasuria • Teal (100%) Producing Field COOK Cook Cluster • Teal South (100%) Producing Field North • G
Slide 25: Anasuria Cluster, UK – Key milestones towards completion
Anasuria Cluster, UK Key milestones towards completion of the transaction Total Purchase Consideration USD 105m (USD 52.5m Hibiscus Share) Stage Consideration (Hibiscus Share) Est. Timing SPA Signed USD 4m* Aug 2015 Closing USD 26m* (Unadjusted - est. at USD8m Feb 2016 adjusted for economic benefit
Slide 26: Anasuria Cluster, UK
Anasuria Cluster, UK A common infrastructure for all producing wells and future development Exploration Development Production Cook Field Anasuria FPSO Kite Discovery Teal Field 40.4 MMstb 2P Oil Reserves1 Guillemot A Teal South Field 27.9 Bscf 2P Gas Reserves1 Field Averaged production rate1,2 of >
Slide 27: Anasuria Cluster, UK – Merits of the transaction
Anasuria Cluster, UK Merits of the transaction Significance of the Anasuria Cluster upon completion of the transaction The achievement of a milestone in our Portfolio FIRST PRODUCING ASSET Balancing Strategy Expands Hibiscus’ operatorship experience Hibiscus-Ping joint venture takes on 100% ow
Slide 28: Anasuria Cluster, UK – Ownership of the Anasuria FPSO
Anasuria Cluster, UK Ownership of the Anasuria FPSO and existing infrastructure 200 people1 are currently working on the day to day operations • Plan to maintain existing contractors/crew to maintain smooth operation during transition • Assets can continue to be operated in a safe and environmentall
Slide 29: Appendix A Core Assets: Production and Development with Exploration Upside
Appendix A Core Assets: Production and Development with Exploration Upside United Kingdom Australia 28
Slide 30: Development with Exploration upside in Australia
Development with Exploration upside in Australia Fast-tracked execution of marginal field development The proposed acquisition of the assets of Hydra is part of Hibiscus’ mission in building its 2P/2C reserves/resources. Hibiscus’ Existing Australia Assets: • VIC/P57 Exploration Permit 8 MMbbls • VI
Slide 31: VIC/P57 – Exploration Permit
VIC/P57 – Exploration Permit Elevating Opportunities VIC/P57 Exploration Permit People Project HSE Acquisition Date: January 2013 Lost Time Incident (LTI) 0 Statistics Water Depth/Size: Up to 150m/460km2 Total Reportable Cases 0 Environment Effective Interest: 78.3% (Concession Operator) Environment
Slide 32: VIC/L31 – West Seahorse Field
VIC/L31 – West Seahorse Field Our first field development VIC/L31 – West Seahorse Field Acquisition Date: January 2013 Participating Interest: 100% (Concession operator) License type: Development License Work Completed: Field Development Plan approved Production License obtained Programme: FID: Q2 2
Slide 33: Proposed Acquisition of Hydra Assets
Proposed Acquisition of Hydra Assets Acquisition to upscale near term production potential in Australia Hydra Energy Holdings Acquisition: Hydra Energy Holdings Pty Ltd (Hydra) assets Office Location: Perth, Australia Assets: 7 Petroleum Titles, of which: • 4 have discoveries with 2P reserves Assets
Slide 34: Proposed Acquisition of Hydra Assets
Proposed Acquisition of Hydra Assets Upscale near term production potential in Australia in line with our business strategy Licence / Lease/ Hydra Energy Petroleum Title Field / Discovery Oil/Gas Permit Number Equity % Retention Lease WA-41-R Corowa, Corowa Extension 66.667 Oil Production Licence TL
Slide 35: Proposed Acquisition of Hydra Assets – Deal Parameters & Milestones
Proposed Acquisition of Hydra Assets Deal Parameters & Milestones Overview of Transaction • Hibiscus to acquire 100% equity interest in Hydra • Hydra to be injected into Hibiscus as a wholly owned subsidiary • Hydra, GNRI and Hibiscus are in discussions on an independent and separate USD20 million f
Slide 36: Proposed Acquisition of Hydra Assets – Merits of the Transaction
Proposed Acquisition of Hydra Assets Merits of the Transaction Adds up to 17 MMbbls1 of 2P/2C reserves/resources which are being acquired during a period of low oil price Development Synergy: Hydra’s core assets can be integrated into Hibiscus’ long term development plan, allowing WSH to advance
Slide 37: Appendix B Team Biographies
Appendix B Team Biographies 36
Slide 38: Board of Directors
Board of Directors • Appointed to the Board on 14 December 2010 • Appointed to the Board on 13 September 2010 • Also serves on the Boards of 12 companies, including Shell • Has 27 years’ experience in the oil and gas industry, both in the Malaysia Ltd, Shell MDS Sdn Bhd, Shell Trading Sdn Bhd, servi
Slide 39: Management
Management • Joined Hibiscus on 14 February 2011 as Head of Petroleum • Joined Hibiscus on 1 October 2012 Engineering • Has over 30 years experience in the oil and gas industry, • Has 15 years experience in reservoir engineering, managing large offshore projects globally production technology and ro
Slide 40: Management
Management • Joined Hibiscus on 1 April 2015 • Joined Hibiscus in November 2014 • Has over 17 years experience in accounting and reporting, • Has 24 years experience in the upstream oil and gas industry, financial management and due diligence with specific expertise in Production Technology and • Pr
Slide 41: Appendix C Supplemental Information
Appendix C Supplemental Information 40
Slide 42: Shareholder Base
Shareholder Base 15.6% Management held No of Shares % of RM 0.19 (in million) Shares Shareholder Profile 1,083,204,454 Share Price IPO Current Current Total number of Shares 205,809 83.61 168.57 15.56% Management Team Market Cap RM’000 - 90.00 8.31% Strategic Investor (Polo Investments Limited) As o
Slide 43: Commercial Structures and Greater Use of Technology
The current market environment has provided the impetus for the industry (operators and service companies) to re-assess the supply/ value chain and change operating and commercial models Operator Focus Areas Industry Issues Responses/Solutions • ‘Lower for longer’ oil price environment • Price press
Slide 44: Definition of Reserves and Resources
Definition of Reserves and Resources Increasing commerciality Low High Low Undiscovered - Discovered – Discovered – Prospective Resources Contingent Resources Reserves Range of Certainty High Estimate 3C 3P Best Estimate 2C 2P Low Estimate 1C 1P High Source: Society of Petroleum Engineers and World
Slide 45: Disclaimer
Disclaimer This presentation has been prepared by Hibiscus Petroleum Berhad (the “Company”) solely for use at a general presentation/briefing to be made as of this date and may not be used by any other party or for any other purpose. By attending the meeting where the presentation is made, or by rea
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