Horizon Oil Limited · ASX:HZN
Horizon Oil — Shareholder Meeting (November 2006)
47 slides from Horizon Oil's shareholder meeting presentation, Nov 22, 2006
Slide 1: AGM Chairman's Address and Executive Director's Presentation
22 November 2006 The Manager, Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 ANNUAL GENERAL MEETING CHAIRMAN'S ADDRESS AND EXECUTIVE DIRECTOR’S PRESENTATION In accordance with Listing Rule 3.13.3, Horizon Oil Limited lodges the Chairman's add
Slide 2: Chairman's Address: Introduction
CHAIRMAN’S ADDRESS HZN AGM 22 NOVEMBER 2006 Ladies and Gentlemen: 1. Introduction Once again – a warm welcome (and a special welcome to Mr Ming Wong based in Singapore and Ms Jyn Baker based in Perth). Ming and Jyn are senior executives of the Singapore based IMC Pan Asia Alliance Pte Ltd. IMC are n
Slide 3: Chairman's Address outline and 2006 scorecard
Brent Emmett and Paul Nimmo will present a comprehensive description of this high value asset together with a review of the substantial further progress made over the year towards building a portfolio of growth assets ranging from significant production to high reward exploration prospects. In this
Slide 4: 2006 Performance Scorecard
Here is how the board rated our performance:- 2006 PERFORMANCE SCORECARD Rating Management Priorities 2006 Outcome / Status out of (as presented to 2005 AGM) 5 Raise equity finance for Maari and proceed with Maari fully financed with cost over-run facility; construction phase of project project 26%
Slide 5: Bayou Choctaw and new business
Bayou Choctaw (2/5) An encouraging geological result in our first well but disappointing operationally. Fortunately there are several additional exploration prospects / locations identified and ready for drilling. Whilst Horizon Oil was fully carried through the exploitation well drilled, the cash f
Slide 6: Share price performance versus peers
we assess that the price would need to stabilise at a materially higher level before we could assert that the “price (was) up to (risked) valuation”. In addition to the increased share price, we are also pleased with Horizon Oil’s share price performance compared with our peers as confirmed in this
Slide 7: Market cap and financing issues
Rights issue Nov 2006 250 200 Placement Dec 2004 Placement Jul 2005 A$Millions Rights Issue Dec 2003 150 100 Placement Mar 2006 50 - 3 03 04 4 05 05 6 06 -0 -0 l-0 n- n- ul- l- ul- an an Market cap -Ju -Ju -Ja -Ja -J -J -J -J 01 01 01 01 01 01 01 01 Even after allowing for the possible impact on val
Slide 8: Finance facilities and rights issue
accommodate the financing requirements of the group’s other potential development assets. The facility agreements were signed in August 2006 after satisfactory conclusion of BOS International’s due diligence. The availability of funding is subject to normal conditions precedent for such finance faci
Slide 9: The Outlook is promising, but
4. The Outlook is promising, but… Notwithstanding the recent decline in oil prices from record highs, we remain of the view that fundamental supply / demand interactions, coupled with OPEC’s demonstrated ability to maintain a floor under prices during market weakness, are likely to keep prices above
Slide 10: Management retention and incentive options
Annual Report, and in the presentation later, notwithstanding the challenges described above. Secondly, because these industry conditions make it even more important (in shareholder interests) that Horizon Oil retains these special skills of our management team. That is why the board strongly endors
Slide 11: Closing quote on strategy
As Brent Emmett observes in the Annual Report:- “…we believe we have the right strategy, geographic focus, assets and people to deliver high returns for shareholders”. 10
Slide 12: Horizon Oil Limited Annual General Meeting
ABN 51 009 799 455 HORIZON OIL LIMITED Annual General Meeting 22 November 2006 This presentation This presentation contains contains some references some references to to forward forward looking assumptions, representations, looking assumptions, representations, estimates estimates and and outcomes.
Slide 13: Chairman's Address
ABN 51 009 799 455 HORIZON OIL LIMITED Chairman’s Address Annual General Meeting 22 November 2006 This presentation This presentation contains contains some references some references to to forward forward looking assumptions, representations, looking assumptions, representations, estimates estimate
Slide 14: 2006 Performance Scorecard
2006 PERFORMANCE SCORECARD Management Priorities 2006 Rating Outcome / Status out of (as presented to 2005 AGM) 5 Raise equity finance for Maari and proceed with Maari fully financed with cost over-run facility; construction phase of project project 26% complete at October 2006 5 Pre-FEED developmen
Slide 15: Oil Prices – Historical and Future
WTI SPOT & NYMEX FUTURES ($/Bbl) 10 20 30 40 50 60 70 80 90 0 03-Jan-05 Oil Prices – Historical and Future 03-May-05 03-Sep-05 03-Jan-06 03-May-06 03-Sep-06 03-Jan-07 03-May-07 03-Sep-07 03-Jan-08 03-May-08 03-Sep-08 03-Jan-09 03-May-09 03-Sep-09 03-Jan-10 03-May-10 03-Sep-10 03-Jan-11 03-May-11 AGM
Slide 16: Relative share price performance
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Slide 17: Horizon Oil Limited Annual General Meeting
ABN 51 009 799 455 HORIZON OIL LIMITED Annual General Meeting 22 November 2006 This presentation This presentation contains contains some references some references to to forward forward looking assumptions, representations, looking assumptions, representations, estimates estimates and and outcomes.
Slide 18: Shareholder Presentation
ABN 51 009 799 455 HORIZON OIL LIMITED Shareholder Presentation Annual General Meeting 22 November 2006 This presentation This presentation contains contains some some referencestoto forward references forward looking assumptions, representations, looking assumptions, representations, estimates and
Slide 19: Location Of Assets
Location Of Assets AGM Presentation 22 November 2006
Slide 20: Objective Re-visited and Progress
Objective Re-visited and Progress Objective To build a specialist Asian E&P company of +/- US$500 million value, that will be highly valued by the market and potential acquirors Progress to date Maari field development underway– first production Q1 2008 Wei 6-12S discovery to serve as development hu
Slide 21: Investment Proposition
Investment Proposition Discovered reserves underwrite current share price Unrisked value of discovered reserves 56 – 63 cps vs. current share price 32 cps Increase in share price expected as Maari development progresses AWE up 275% on Yolla and Cliff Head and Beach up 200% on BMG Further significant
Slide 22: Market Valuation
Market Valuation Reserves valuation @ A$20/2P barrel (comparables:- BPT, COE, MOS etc):- Stage Asset HZN market value (cps) Cash (A$24 million) 3 Development Maari 2P 14 - 16 Development Bayou Choctaw 4 Pre-development Block 22/12 discovered fields 22 - 25 Appraisal Maari other zones 3-5 Appraisal B
Slide 23: Re-rating as Development Progresses - Examples
Re-rating as Development Progresses - Examples Govt approval First gas granted for - Yolla Yolla Tui FID FID + Finance secured (Yolla) Cliff Head and Cliff Head FID discovery First production Cliff Head Tui Discovery First oil - BMG Acquisition of 25% BMG AGM Presentation 22 November 2006
Slide 24: Reserves and Resources Summary
Reserves and Resources Summary AGM Presentation 22 November 2006
Slide 25: Net Production Forecast
Net Production Forecast Maari and Wei 6-12S on production in 2008… …generating A$200 million EBITDA in 2008 and 2009 at US$60 oil AGM Presentation 22 November 2006
Slide 26: Maari Development – New Zealand
Maari Development – New Zealand Development 26% complete on a 50+ mmbo oilfield… …with 10 – 20 mmbo upside potential AGM Presentation 22 November 2006
Slide 27: AGM Presentation 22 November 2006
AGM Presentation 22 November 2006
Slide 28: Maari Development Progress
Maari Development Progress Overall development concept confirmed – 5 production / 3 injection horizontal wells with wellhead platform / FPSO production facilities FID capex budget US$365 million (including contingency) US$40 million finance facility provided to HZN by BOS International 22 year produ
Slide 29: Maari WHP Construction
Maari WHP Construction AGM Presentation 22 November 2006
Slide 30: Maari WHP Construction
Maari WHP Construction AGM Presentation 22 November 2006
Slide 31: Maari WHP Construction
Maari WHP Construction AGM Presentation 22 November 2006
Slide 32: China 22/12 – Discoveries & Prospects
China 22/12 – Discoveries & Prospects 60+ mmbo recoverable reserves discovered... …with +/- 100 mmbo recoverable exploration potential AGM Presentation 22 November 2006
Slide 33: Block 22/12 Development Planning
Block 22/12 Development Planning Stand-alone development concept Processing / wellhead platform and FSO / FPSO with 20,000 – 25,000 bopd capacity at Wei 6-12S location Unmanned minimal structures for Wei 6-12 and other nearby fields, tied back to Wei 6-12S hub facility Dehydration platform at Wei 12
Slide 34: Wei 6-12 South Discovery
Wei 6-12 South Discovery Gross pay interval of 500 m in numerous reservoir sands with collectively 100 m of net pay (predominantly oil-bearing) Reservoir sands generally good quality, up to 25 m thick; DSTs over 3 main pay zones flowed at combined rate of 5,750 bopd Second sidetrack drilled 400 m to
Slide 35: Wei 6-12 South Discovery DSTs
Wei 6-12 South Discovery DST#3 DST#2 Wei 6-12 South Discovery DST#1 AGM Presentation 22 November 2006
Slide 36: Amplitude Anomalies over Block 22/12
Amplitude Anomalies over Block 22/12 12-1 Field Complex 300 mmbo Wei 6-12-1 5 – 10 mmbo Wei 6-12-S 28 mmbo …several anomalies remain to be drilled AGM Presentation 22 November 2006
Slide 37: Papua New Guinea
Papua New Guinea 2P recoverable resources of 524 bcf gas and 25 mmb condensate… …development options emerging AGM Presentation 22 November 2006
Slide 38: New Business Focus Area
New Business Focus Area Focus is South China Sea north and east of Malacca in an area with Strong oil and gas demand Uncomplicated geological targets in productive fairways Good deal flow with limited competition Mature operating environment AGM Presentation 22 November 2006
Slide 39: Lei Dong Block 24/05
Lei Dong Block 24/05 An entire virgin basin in which to follow up Block 22/12 success… …surrounded by five productive analogue basins AGM Presentation 22 November 2006
Slide 40: Lei Dong Block – Structures and Leads
Lei Dong Block – Structures and Leads 110’ 40’’ 111’ 00’’ 111’ 20’’ 111’ 40’’ Lead Area (km2) Pay (m) Unrisked Prospect Potential (mmbo) 9-1 5-20 20-50 20-120 9-2 5-20 20-50 20-120 10-1 5-15 10-30 10-80 11-1 10-20 10-30 20-150 20’ 7-1 5-12 20-50 20-80 50’’ 4* Leads 10-50 10-30 50-200 11-1 10-1 7-1 9
Slide 41: Lei Dong Block – Structures 9-1 & 9-2
Lei Dong Block – Structures 9-1 & 9-2 SW NE 0 secs 1.0 2.0 2 Km NW SW 0 1.0 2.0 AGM Presentation 22 November 2006
Slide 42: Gulf of Thailand
Gulf of Thailand AGM Presentation 22 November 2006
Slide 43: Block G10 – Structures and Leads
Block G10 – Structures and Leads Unrisked Lead Prospect Potential (mmbo) A 20-110 B 10-80 C 20-110 D 5-20 E 10-50 F 5-30 G 10-50 H 5-20 I 30-200 BLOCK G10/48 Located in the southern Pattani Basin Petroleum system proven Mayura oil discovery, 10-15 mmbo potential No activity since 1996 – 3 wells on e
Slide 44: Block G10 – Lead B
Block G10 – Lead B South North 1.0 2.0 2 Km 3.0 West East 1.0 2.0 3.0 AGM Presentation 22 November 2006
Slide 45: Management Priorities 2007
Management Priorities 2007 Proceed with Maari construction phase towards installation in late 2007 Carry out FEED on Wei 6-12S, make FID and begin construction phase; drill 2 exploration wells on Block 22/12 Obtain Petroleum Contract for Lei Dong and farmout Complete initial seismic acquisition on B
Slide 46: Activity Schedule
Activity Schedule AGM Presentation 22 November 2006
Slide 47: Visit the Horizon Oil website
Please visit the Horizon Oil website www.horizonoil.com.au to see:- Detailed Investor Presentation Latest Quarterly Report Analyst reports on HZN