Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (October 2014)
42 slides from Hibiscus Petroleum Bhd's investor presentation, October 2014
Slide 1: Extracting Value
Extracting Value Before proceeding to read further, please refer to the Disclaimer on pages 41-42 of this presentation. October 20141 R2
Slide 2: Table of Contents
Table of Contents 1. Resources and Reserves 2. Hibiscus Strategy 3. Planning for Success 4. Value Creation a) Exploration b) Development c) Production 5. Conclusion 2
Slide 3: Introduction to HPB
Introduction to HPB Market Capitalisation: MYR 1.37 bil (USD 433 mil) Ordinary Shares: 891.6 million 12 month Trading Range: MYR 1.37 – MYR 2.68 Average Daily Volume: 897, 146 Free Float: 30% of shareholder base Debt: Nil Listing: Main Board, Bursa Malaysia 3
Slide 4: Resources and Reserves
Resources and Reserves 2P + 2C Oil Reserves (MMbbls)* Prospective Resources (MMbbls)* 43.0 64.8 6.9 4.3 246.4 8.0 1,135.0 Australia - Sea Lion: 63% (Concession Operator) Australia - West Seahorse : 100%** (Concession Operator) RAK - Dahan: 21% (Concession Operator) JPDA - Kitan: 25%*** Norway: 2-8%
Slide 5: Resources and Reserves
Resources and Reserves 2P+ 2C Oil Reserves MMbbls JPDA - Kitan 4.31 Australia - West Seahorse 8.02 Prospective Resources MMbbls3 Australia – Sea Lion 6.9 RAK - Dahan 43.0 Norway 64.8 Sharjah – Zubara 246.4 Oman – Masirah Block 50 1135.0 All figures represent resource net to Hibiscus 1. Based on Wood
Slide 6: Achieving Scale
Achieving Scale 2016 Mission To be a Respected Independent E&P Company Forecast Average Daily Production (2014 – 2016) Barrels/day 15,000 West Seahorse 100 MMbbls 2P/2C Reserves Block 50 Oman 12,000 Kitan 9,000 10,000 bbls/day production 6,000 3,000 0 Advancing assets from Apr-14 Apr-15 Apr-16 Apr-1
Slide 7: Management Team
Management Team Dr Kenneth Pereira (Managing Director) • Former Managing Director of Interlink Petroleum Ltd, a Mumbai-listed E&P company • Chief Operating Officer of SapuraCrest Petroleum Berhad (1997 – 2008) 200 Joyce Vasudevan (Chief Financial Officer) • Former Head of Strategic & Operations Plan
Slide 8: Hibiscus Strategy
Hibiscus Strategy PROSPECTIVE CONTINGENT RESOURCES RESOURCES RESERVES DECREASING RISK Highest value creation takes place in the $/boe, risked exploration phase Cash-flow generated from production funds when discoveries are dividends, equity for development and high made impact exploration which in t
Slide 9: Competitive Advantage
Competitive Advantage Virtual Drilling Cost effective and overlay on accelerated conventional development methodology solution – ‘Plan for Success’ DEVELOPMENT EXPLORATION & PRODUCTION 9
Slide 10: Plan for Success
Plan for Success • Planning for Success offers a compelling RISK / REWARD ratio: – Planning for Success requires a very SMALL INVESTMENT – The REWARD is potentially 12 – 18 months earlier First Oil • Large Operators have internal processes that prevent such an approach • Small Operators have the abi
Slide 11: Exploration De-risking
Exploration De-risking Identification of prospects Defining Virtual Choosing well Drilling location While the bulk of G&G takes place Purchasing of Conventional after new seismic is acquired, the long lead items G&G process commences even before the & logistics concession is leased and is carried re
Slide 12: Work Programmes
Work Programmes NORWAY 2-9% 13 Licenses MIDDLE EAST Stake Exploration 1H 2015 – Drilling Oman Block 50 22% one well (PL 591) Development Stake Exploration Q3 2015 – 2H 2015 – Drilling Extended Well Test two wells Exploration (PL 708 & PL 616) Q1 2015 – Seismic Programme Sharjah Offshore 35% JPDA 25%
Slide 13: Production
@@ Petroieu m PRODUCTION
Slide 14: Kitan Oil Field
Kitan Oil Field Asset Name: Kitan Oil Field (JPDA 06–105)* Asset Type: Production Country: Joint Petroleum Development Authority (Australia – Timor Leste) Acquisition Date: June 2014 Water Depth/ Size: Up to 330m/ 85 km2 Work Completed: • Field developed with FPSO and three subsea wells • Approval o
Slide 15: Production Value: Kitan Oil Field
Production Value KITAN OIL FIELD DRILLING in Q3 2014 Cost Control Kitan-3 measures 4.3 mmbbl 2P + 2C Reserves implemented Sidetrack USD 40m* USD 36 m* Initial Acquisition Value USD 18 m GLAS DOWR FPSO * HPB estimates 1 2 3 15
Slide 16: Development
@@ Petroieu m DEVELOPMENT
Slide 17: West Seahorse Field
West Seahorse Field Asset Name: West Seahorse (VIC/L31) Asset Type: Development Country: Australia Acquisition Date: January 2013 Water Depth/ Size: Up to 150m/ 40km2 Participating Interest: 100%* (Concession operator) Discovery Date: September 1981 Timing for FID: October 2014 Work Completed: • Obt
Slide 18: Development Value: West Seahorse Field
Development Value WEST SEAHORSE FIELD DRILLING in Q4 2015 First Oil 8.0 mmbbl 2P + 2C Reserves, USD 82m* Production License and Field MOPU Development Plan approval Initial Acquisition USD 40m* Value USD 36 m WEST SEAHORSE DEVELOPMENT PLAN 1 2 3 * HPB estimates 18
Slide 19: Oman Story
Oman Story Asset Name: Oman Block 50 Asset Type: Development Country: Oman Effective Date: August 2011 Water Depth/ Size: Up to 150m/ 16,900km2 Participating Interest: 22% (through Lime) Discovery Date: March 2014 (1st offshore discovery off east of Oman) Work Completed: • Drilling of two exploratio
Slide 20: Drilling Review
Drilling Review During a 48-hour test, hydrocarbons were flowed to the surface and the well achieved light oil flow rate of up to 3000 stock tank barrels per day with no water production 20
Slide 21: Oman Development
Oman Development Completed within 3 years as opposed to normal cycle of 3 to 5 years Early Q2 2011 2015 2016 2014 2014 Seismic acquisition/ Successful Review of processing and Multi-well License Rig oil discovery technical interpretation campaign Acquired Farm-out secured & flow test solutions Seism
Slide 22: Exploration
@@ Petroieu m EXPLORATION
Slide 23: Sharjah Offshore
Sharjah Offshore Asset Name: Sharjah Offshore Asset Type: Exploration Country: United Arab Emirates Acquisition Date: June 2011 Water Depth/ Size: Up to 350 m/ 1600km2 Work Completed: • Seismic Acquisition • Mapped drill-ready prospects • Awarded Well Management contract Upcoming Programme: Drilling
Slide 24: Exploration Value Creation: Sharjah Offshore
Exploration Value Creation SHARJAH OFFSHORE DRILLING in Q3 2015 Discovery increases Discovery GCOS and Made valuations of other prospects USD 40m** Unrisked Recoverable Exploration Trap GCOS Prospective Resources (mmbbl) Miocene-Pliocene Flower 11% Value Structures 20 Miocene Channels and clinoform
Slide 25: Sea Lion
Sea Lion Asset Name: Sea Lion Asset Type: Exploration Country: Australia Acquisition Date: January 2013 Water Depth/ Size: Up to 150m/ 460km2 Work Completed: • Mapped drill-ready prospects Upcoming Programme: Drilling of one exploration well in Q3 2015 25
Slide 26: HiRex
HiRex Source: U.S. Geology Survey Report 2010 • Formed in March 2013 • A 41% owned joint venture between Hibiscus Petroleum Undiscovered Resources and Rex International Holdings No Basin Oil (MMBO) Gas (BCFG) • Primarily focused on high-impact exploration and 1 Central Burma 1,808 12,672 marginal fi
Slide 27: Hirex Exploration
Hirex Exploration Hirex Petroleum is currently evaluating high potential assets in Cambodia and Malaysia. The company aims to acquire an equity position in at least 2 assets by the end of the year. 27
Slide 28: Drilling Success
Drilling Success Hibiscus Traditional Petroleum Players Exploration success > 50% 10% – 15% rate of finding oil Pre-drilling costs per Under $2 million > $4 million well Time required to 4 – 6 months 1 – 3 years identify prospects Project Manager Involvement and Equity Participation 28
Slide 29: Forward Strategy
Forward Strategy Demonstrate good execution of Unearth full value of upcoming projects petroleum system including West discovered in Oman Seahorse and Sharjah A Respected Delivering Independent on Promises E&P company HiRex: To deliver Capital raising on objectives of for funding of acquiring at lea
Slide 30: Forward Strategy
Forward Strategy 2014 2015 Stage Block A S O N D J F M A M J J A S O N D Sharjah Exploration Sea Lion Norway Oman Block 50 Development West Seahorse Production Kitan 30
Slide 31: Project funding options
Project funding options Equity Debt Stage Block Description Financing Financing Sharjah √ Drilling five exploration wells in VIC/P57 √ 2015: Sharjah Funding options: Exploration (50% farm out) , 3 in Norway (PL 591, Lime √ PL 708 & PL 616) Equity Norway and Australia US$ 25m - >100m Oman - Extended
Slide 32: New Opportunities
New Opportunities Examples of project types being explored • Development of proven resources Opportunity 1 • 25% interest in field located in Malaysia • Acquisition of producing asset Opportunity 2 • Field located in Malaysia *May result in a funding exercise being implemented in 2015 32
Slide 33: Closing Comments
Closing Comments Work Programme Experience Aggressive schedule with 3 to 5 Experienced and exploration wells in 2015. A success knowledgeable management. in any one would be transformational. Why Geopolitical invest in Growth All current activities are in Hibiscus? On the cusp of revenue generation.
Slide 34: Appendix
HIBISCU Appendix
Slide 35: Capital Structure
Capital Structure Capital Structure : 30 September 2014 Price Mkt Cap • Non-Independent Directors and Management hold largest block (18.8%) Total Number (RM) RM’000 • Diversified shareholder base Total Number of • Most large shareholders are involved in or familiar with the oil and gas 1.45 891,642,
Slide 36: Rex Technology Coverage
Rex Technology Coverage e* (Ne @e@ Petroleum Ss EXCLUSIVE USE: (through Lime) Syria Lebanon Saudi Arabia Egypt ON A PROJECT BASIS: (through Lime) Norway FIRST RIGHT OF REFUSAL: (through HiRex JV) . New = Guinea Vietnam
Slide 37: Rex Virtual Drilling
Rex Virtual Drilling Conventional Seismic Interpretation Rex Virtual Drilling Interpretation Risk Risk Factor Conventional Rex VD Risking Category Principle P Trap Geometry 0.60 0.95 P Trap • An advanced seismic resonance evaluation P Seal 0.80 0.99 scheme P Reservoir • Able to pinpoint exact locati
Slide 38: Range of Certainty
Petroleum Economics Increasing Commerciality Low High Undiscovered - Discovered - Prospective Contingent Discovered - High Resources Resources Reserves High Estimate 3C 3P Range of Certainty Best Estimate 2C 2P Low Estimate 1C 1P Low Source: Society of Petroleum Engineers and World Petroleum Council
Slide 39: Hibiscus - Asian peer Comparison
Hibiscus - Asian peer Comparison Market capitalisation (US$m)—as at 17 July 2014 – Hibiscus is well positioned compared 1,018 1,200 to Asian mid-cap oil and gas peers 1,000 661 569 800 461 – Balanced portfolio and an inventory 600 351 307 229 400 127 of 10.8mmboe of 2P reserves across 104 200 multip
Slide 40: Thank You
@@ Petroieu m THANK YOU
Slide 41: Disclaimer
Disclaimer This presentation has been prepared by Hibiscus Petroleum Berhad (the “Company”) solely for use at a presentation 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 reading the presenta
Slide 42: Disclaimer (Relevant Persons)
This presentation is made to and directed only at (i) persons outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth individuals, and other persons t
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