2021 AGM PRESENTATION

ANNUAL GENERAL MEETING PRESENTATION

COMPLIANCE STATEMENT

Disclaimer

  • Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other trend projections and any estimated company earnings are or may be forward looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. Actual results, actions and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors.
  • While every effort is made to provide accurate and complete information, Horizon accepts no responsibility for any loss, damage, cost or expense incurred by you as a result of any error, omission or misrepresentation in information in this presentation.
  • In this presentation, references are made to EBITDAX, Underlying Profit and Free Cashflow, which are financial measures which are not prescribed by Australian Accounting Standards:
  • EBITDAX represents the profit adjusted for interest expense, taxation expense, depreciation, amortisation, and exploration expenditure (including non-cash impairments)
  • Underlying profit represents the profit adjusted for the unrealised movement in the value of options issued under the subordinated loan facility, and non-cash impairments
  • Free Cash Flow represents Cashflow from Operating Activities less Investing cashflows
  • All references to dollars in the presentation are United States dollars unless otherwise noted.

Reserves Disclosure

  • Unless otherwise stated, all petroleum reserves and resource estimates refer to those estimates as set out in Horizon's Reserves and Resources Statement as at the balance date (i.e. 30 June) as most recently released to ASX. Horizon is not aware of any new information or data that materially affects the information included in this presentation. All the material assumptions and technical parameters underpinning these estimates continue to apply and have not materially changed.
  • For the purposes of this presentation, 6 bcf of raw gas equals 1 mmboe.
  • The estimates of petroleum reserves and resources contained in this statement are based on, and fairly represent, information and supporting documentation prepared by staff and independent consultants under the supervision of Mr Gavin Douglas, the GM-Production and Exploration of Horizon Oil Limited. Mr Douglas is a full-time employee of Horizon Oil Limited and is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers. Mr Douglas' qualifications include a Master of Reservoir Evaluation and Management from Heriot Watt University, UK and more than 24 years of relevant experience. Mr Douglas consents to the use of the petroleum reserves and resources estimates in the form and context in which it appears.
  • This presentation should be read in conjunction with the 2021 Reserves and Resources Statement, the Annual Financial Report for the year ended 30 June 2021 and ASX Announcements.

ANNUAL GENERAL MEETING PRESENTATION

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OUR STRATEGY

Maximise Free

Further Distributions to

Invest in New Business

Shareholders

Cashflow

if exceptional

when prudent to do so

ANNUAL GENERAL MEETING PRESENTATION

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FINANCIAL AND COMMERCIAL HIGHLIGHTS - FY21

Production and financial metrics were within or exceeded FY21 guidance range (USD unless specified)

Production 1.33 MMbbls

Much improved oil price

Corporate costs reduced

$63.6 million revenue

EBITDAX $36.4 million

Sales 1.27 MMbbls

$20 million free cashflow*

PAT $7.8 million

Total distributions to

Exercise of 300 million warrants

Net cash $31.7 million at Y/E prior

shareholders A$49.4 million

to AUD 3cps capital return

•

AUD 3cps capital return

injected A$18.3 million cash

(A$47.4 million)

•

On-andoff-market buybacks

*Free Cashflow represents cash flows from operating activities less investing cash flows

ANNUAL GENERAL MEETING PRESENTATION

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OPERATIONS

The priority has been to increase production, reduce costs and maximise returns from the producing assets

No loss of containment, strong

10 workovers restored production

WZ12-8E project sanctioned at

safety record

across both assets

time of low oil price

Greenhouse Gas reductions

Maintenance of low cash

Clean exit from PNG for cash and

2x infill wells (China) added 2,200

operating costs below $20/bbl

no residual liability

bopd (initial rate)

ANNUAL GENERAL MEETING PRESENTATION

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Horizon Oil Limited published this content on 19 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2021 02:02:03 UTC.