HORIZON OIL LIMITED ABN 51009799455 Investor Presentation January 2016
Company overview asset portfolio Clear geographic focus on Asia-Pacific region Technical focus on proven, conventional plays with scale, upside and manageable risk * Working with experienced partners such as CNOOC, OMV,…
Horizon Oil (HZN:AU) at a glance Sydney-based public company listed on Australian Securities Exchange and in ASX 300 Index Portfolio of exploration, development and producing assets in Asia-Pacific region Shareholding: IMC…
Shareholder distribution and trading statistics Jan 2016 (to date) Last 0.082 High 0.089 Low 0.079 Volume 2,741,854 12 Months Last 0.082 High 0.140 Low 0.065 Volume 703.36m Fully paid shares 1,302m 1 Partly paid shares…
Key performance measures last five financial years Completion of Maari Growth Project in July 2015 expected to increase The outlook for 2016 in the current oil price environment remains production in 2016 positive due to the benefit…
Net Reserves1, Contingent Resources1 and Prospective Resources1 as at 30 June 2015 RESERVES CONTINGENT RESOURCES PROSPECTIVE RESOURCES Proven + Probable Proven + Probable Best Estimate Total: 13.9 mmboe Total: 87.6 mmboe Total:…
Forecast net production from Reserves + Contingent Resources as at 1 July 2015 18,000 Assumptions 16,000 Development of WZ 12-8E, 12-10 and 12-3 fields in 14,000 Beibu Gulf, with production commencing in 2017 Barrels of oil…
Strategic imperative focus on resource development Total audited reserves and contingent resources of 101.5 million barrels of equivalent 11% developed / 89% undeveloped 34% oil / 66% gas 10.7 mmboe Developed oil (NZ and China)…
Beibu Gulf field production and future development areas China WZ 6-12N and WZ 12-8W fields producing above forecast Potential for higher oil recovery from WZ 12-8W Excellent HSE record since production start-up in 2013 Cost…
Horizon Oils share of Block 22/12 gross revenue calculated on 2P Reserves Forecast The above graph demonstrates Horizon Oils increased share of cost recovery in the period Jan 2016 to Mar 2020, once CNOOC has recovered its…
Beibu Gulf future development projects WZ 12-8 Development Area Integrated development of WZ 12-8E and WZ 12-3 fields (audited gross 2C resources 10.5 mmbo) plus WZ 12-10-1 and WZ 12-10-2 accumulations (audited gross 2P+2C reserves…
Beibu Gulf fields phased development scheme Phased approach to development of new reserves utilising existing infrastructure 12 January 2016 13
Maari /Manaia fields New Zealand FPSO Raroa purchased in April 2013 Maari field facilities and FPSO Raroa repaired and upgraded in H2 2013 Maari Growth Projects Program successfully completed and Ensco 107 jack-up rig…
Manaia Maari schematic cross-section 12 January 2016 15
Maari production forecast to 2030 showing Growth Projects contribution and upside potential (HZN) Actual Forecast 12 January 2016 16
Exploration potential on Maari/Manaia oil migration path PEP 51313 12 January 2016 17
Papua New Guinea PNG is rich in oil, gas and minerals with track record of successful large-scale development projects Stable fiscal regime and succession of pro- development governments Jurisdiction well-supported by…
Horizon Oil acreage and joint venture partners - Papua New Guinea Successful Tingu-1 exploration/appraisal well drilled in 2013 extended PRL 21 gas/condensate resources materially Development application for Elevala/Tingu/Ketu…
Stanley and Elevala/Ketu field development schemes Stanley field Petroleum Development Licence awarded in May 2014 Development drilling subsequently completed, both wells Stanley-3 and -5 met or exceeded expectations…
PNG gas commercialisation options Sales to regional buyers for power generation and other industrial use Ok Tedi Mining Limited (OTML) and Frieda River project (when sanctioned) Local towns and communities in Kiunga Ok Menga…
Papua New Guinea hydrocarbon production 12 January 2016 22
Horizon Oil forecast net production from Reserves + Contingent Resources as at 1 July 2015 18,000 Assumptions 16,000 Development of WZ 12-8E, 12-10 and 12-3 fields in 14,000 Beibu Gulf, with production commencing in 2017…
WoodMackenzie macro oil near-term outlook (Oct 2015) (1) US total rig count 767 (574 oil rigs) at 13 Nov 2015, down from 1,928 (1,574 oil rigs), year-on-year Global oil supply peaked in Q2 2015, as US unconventional oil went…
WoodMackenzie macro oil supply/demand outlook (Oct 2015) (2) 12 January 2016 25
Barclays global oil supply/demand outlook (Oct 2015) (3) The balances for 2016 are substantially tighter than 2014 and 2015, with stock draws forecast in Q4 2016 12 January 2016 26
RBC oil price forecast Nov 2015 (4) 12 January 2016 27
LNG demand vs contracted supply Medium to long-term LNG demand forecasts still robust Source: Oil Search Limited 12 January 2016 28
Response to current low oil price environment Brent oil price Operating income substantively maintained by oil price hedging 2014 mid 2016 Opex reduced (down 20% YTD in Block 22/12) Capex for 2015-2016 materially reduced and…
Strong risk management with a well established hedging policy Oil price hedge profile 842,500 mmboe hedged from 1 Jan 2015 through mid 2016 at average of US95/bbl Oil price hedging program means cash flows in 2015 and 2016 not as…
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