Building For Success Before proceeding to read further, please refer to the Disclaimer on pages 45-46 of this presentation. December 20141 R3
Contents Section One -Investment thesis Why Invest In Hibiscus Section Two Company background and asset portfolio Section Three A discussion on the future of Oil 2
Section One -Investment thesis Why Invest In Hibiscus 3
Key Investment Themes Hibiscus is structured to withstand industry and Resilience market volatility through its diversified asset base and balanced portfolio strategy. Hibiscus can reconfigure its project approach and Agility…
Key strengths RESILIENCE Low correlation to market volatility Healthy Cash Balance and Zero Debt Diversified asset base and balanced portfolio strategy Ability to leverage and raise capital 5
Key metrics Return to shareholders since IPO* 60.0% Cost of equity and WACC 12.2% Gearing 0.0x Beta** 1.47 Price/Book Value 1.75x * 25th July 2011 **Source: Bloomberg 6
Diversified Asset Base 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…
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…
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…
Key strengths AGILITY High calibre management team Rapid reconfiguration of project ownership and structures Scalable project execution to maximise returns on resources Swift response to new opportunities and…
Board of Directors 180 Zainul Rahim bin Mohd Zain (Non-Independent Non-Executive Chairman) Chairman Shell Companies Egypt and Deputy Chairman Shell Companies Malaysia Sits on the board of Petronas Carigali 160 Dr Kenneth Pereira…
Management Team Joyce Vasudevan (Chief Financial Officer) Former Head of Strategic & Operations Planning Unit at SapuraCrest Petroleum Berhad Former Head of Business Analysis & Planning Department at Carlsberg Brewery Malaysia Mark…
Competitive Advantage Virtual Drilling EXPLORATION overlay on conventional methodology Cost effective and DEVELOPMENT accelerated & development PRODUCTION solution Plan for Success 13
Plan for Success (Development) 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…
Rapid Reconfiguring - WSH In order to improve project economics and extend field life, the company is utilizing a long term charter strategy for all offshore facilities to develop its West Seahorse (WSH) asset. With a longer lease…
Key strengths STRATEGIC AND AGGRESSIVE IN PURSUING RETURNS Perpetual capital build to achieve scale Unrelenting focus on high return assets Use of advanced exploration technology Ability to lower project costs in current…
Achieving Scale Moving towards a 100MMbbls reserves target 2016 Mission Sharjah Offshore 2015 54.2 Post 2015 - Australia Sea Lion 6.9 - Unrisked Drilling & Norway prospective Development - PL 591 1.3 resources activities - PL…
Forward Execution of Strategy Aggressive schedule with three to five exploration wells in 2015. A success in any one would be transformational 2015 Stage Block J F M A M J J A S O N D Sharjah O Drilling five exploration wells in…
New Opportunities Examples of project types being explored Development of proven reserve Opportunity 1 Field located in Malaysia Acquisition of exploration asset Opportunity 2 Located in Malaysia Acquisition of exploration…
Rex Virtual Drilling (Exploration) 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…
Rex Technology Coverage 21
Part Two - Company Background and Assets 22
Timeline of What Weve Achieved 2000 25 Market Cap 1800 Number of Concessions 1. Drilling Program Commences 1600 2. VIC/P57 FDP OMAN OIL 20 Additional approved and DISCOVERY Concessions in Production License 1400 Norway and…
Capital Structure Capital Structure : 28 November 2014 Price Mkt Cap Non-Independent Directors and Management hold largest block (18.8%) Total Number (RM) RM000 Diversified shareholder base Total Number of Most large shareholders are…
EXPLORATION ASSETS 25
Sharjah Offshore Asset Name: Sharjah Offshore Asset Type: Exploration Country: United Arab Emirates Project Manager: Hibiscus Acquisition Date: June 2011 Water Depth/ Size: Up to 350 m/ 1600km2 Discovery increases GCOS and valuations…
Sea Lion Asset Name: Sea Lion (VIC/P57) Asset Type: Exploration Country: Australia Operator: Hibiscus Acquisition Date: January 2013 Water Depth/ Size: Up to 150m/ 460km2 Participating Interest: 55.1% (Concession Operator) Work…
Lime Norway 2015 Drilling Through Lime Norway, Hibiscus will be participating in the drilling of three exploration wells next year on the Norwegian Continental Shelf. PL 591 (Lime Norway Stake: 5%) Operator: Tullow Oil Norge AS Exposure…
DEVELOPMENT ASSETS 29
L-31 West Seahorse Field (Australia) Asset Name: West Seahorse (VIC/L31) Asset Type: Development Acquisition Date: January 2013 Operator: Hibiscus Participating Interest: 100% (Concession operator) Timing for FID: December 2014 Work…
Oman Story Asset Name: Oman Block 50 Asset Type: Development Country: Oman Project Manager: Hibiscus Effective Date: August 2011 Water Depth/ Size: Up to 150m/ 16,900km2 Participating Interest: 22% (through Lime) Discovery Date: March…
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…
PRODUCTION ASSET* 33 *Pending completion of 100% of Talisman Resources JPDA (06 105) Pty Ltd
Kitan Oil Field Asset Name: Kitan Oil Field (JPDA 06105)* Asset Type: Production Country: Joint Petroleum Development Authority (Australia Timor Leste) Operator: ENI Acquisition Date: June 2014 Water Depth/ Size: Up to 330m/ 85 km2…
HiRex Formed in March 2013 A Joint venture between Hibiscus Petroleum and Rex International Holdings Established in order to bring the Rex technology to Asia Pacific throughHibiscus network and knowledge of the region Objectives…
Oil Price Impact Factors Softer Demand China Europe Energy Efficiency Gains Technology Solar Wind LNG Effect Stranded gas from floating LNG becomes viable Large investments making more gas transportable Supply US Shale…
Is Cheap Oil Sustainable Winners World Economy Shifting resources from producers to consumers China & India Agriculture based countries America Largest consumer and importer of oil Losers America Largest producer of oil OPEC…
Shale Breakeven Prices US Shale Breakeven Prices 40
Why smaller companies will thrive Field Size by Production Total No. of Pre Volume (bbls/day) Production 1950s 1960s 1970s 1980s 1990s Fields 1950s (bbls/day) 1,000,000+ 4 8,000,000 2 1 1 500,000 1,000,000 10 5,900,000 2 3 3 1 1…
Appendix 42
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…
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