An Introduction to Hunt Oil Company

Transcription

1 An Introduction to Hunt Oil Company Who We Are How We Operate Where We Operate Examples of Our Operations ASDFG

2 Mission Statement Hunt Oil Company is an entrepreneurial growth oriented global energy company. We emphasize the front-end of the exploration process by investing in the generation of new oil and gas plays, scientific data, new technology, and people. We leverage our culture of operational excellence to participate in world class projects and excel at infrastructure projects requiring expert project management. To fund our global activities and mitigate risks, we access third party capital through innovative financial strategies and structures.

3 Overview of Hunt Oil Company Hunt Oil Company is one of the largest and most successful private oil companies in the world Hunt Oil Company ( Hunt, HOC ) was founded in 1934 and today is one of the largest privately owned independent oil companies in the world Company currently conducts operations across numerous oil and gas fields in 8 countries Operations on five continents; all types of environments (harsh deserts, mountainous terrain, tropical jungle, etc.); onshore and offshore Hunt corporate headquarters in Dallas, Texas World-class management and operations team; recognized as one of the most effective operators in the industry Financially stable (investment grade credit: Moody s Baa2, S&P s BBB)

4 Overview of Hunt Oil Company The Company is responsible for discovering and developing some of largest oil and gas fields in the world, including: Yemen: Discovered over 160mm m 3 of oil and 339B m 3 of gas Fairway Oil Field (East Texas): Over 30mm m 3 of oil produced to date Considered the largest oil field in the world at the time of discovery Beatrice Field (UK North Sea): Discovered over 80mm m 3 of oil Camisea (Peru): Developed over 283B m 3 of gas Bakken / Three Forks (North Dakota): One of top Bakken operators with over 240 gross wells drilled to date

5 History of Hunt Oil 75 Years of Oil & Gas Experience 1974: Ray Hunt becomes Chairman of the Board 1984: Discovered the Alif Field in Yemen, the first oil field in Yemen. > 1 billion barrels of oil discovered 1992: Acquired domestic assets from Pacific Enterprises for $371MM 380 Bcfe (60% Oil) in Rocky Mountains, Mid Continent and Gulf Coast 2000: Acquired Newport Petroleum for $520MM Combined existing Calgary team with Newport to form Hunt Oil Canada, Inc. 2001: Acquired Chieftain Int l, Inc. for $600MM May 2008: Yemen LNG secured $2.8B project financing Largest ever limited recourse financing in Yemen : Hunt Oil Company established by H.L. Hunt, the late father of Ray Hunt 1976: Achieved first int l success in the North Sea Significant discovery, 80 miles from the nearest oil production 1986: Commissioned 10,000 Bopd refinery Constructed 423-km pipeline across mountains to the Red Sea Yemen joins the ranks of oil exporting countries 2000: Awarded Camisea Contract by the government of Peru Partnered with Pluspetrol and SK to develop one of South America s largest natural gas resources 2004: Completed $1.7B pipeline in Peru (less than 4 years from start) 697 km duel pipeline from the Camisea region across the Andes Mountains to Peru s West Coast June 2008: PERU LNG secured $2.25B in loans to fund the PERU LNG project $3.8B est. project cost (largest foreign investment in Peru s history) Discovery of the East Texas Oil Field (1930s) First international project (1976), the Beatrice field in the North Sea Operates in all types of environments, including the harsh desert Malvinas gas plant in South America with capacity to process ~500 MMcf/d of wet gas Peru LNG plant first LNG load expected in May 2010 Current Hunt corporate headquarters in Dallas, Texas

6 Hunt s Broad Expertise Geology Exploration and development activities in numerous basins throughout the world Experience in range of plays, pressures, temperatures and surface conditions Operates majority of exploration plays, including joint interest properties for majors throughout the world Engineering / Operations Production optimization across multiple formations Primary, secondary, and tertiary recovery Strong metrics for drilling and completing efficiency and production up-time Large-Scale Project Execution Leader in project development activities worldwide (Hunt LNG, Peru Camisea, Yemen Exploration) One of the few independent oil and gas companies active in LNG project development Deep bench of employees who have executed multiple projects Health, Safety & Environmental Impeccable safety record Proven history of environmental sensitivity Committed to preservation and environmental protection Experience European Union / UKCS USA and Canada South America Middle East & Oceana International Best practices (IFC, OGP, IPIECA) Stakeholder engagement programs Archaeology & cultural heritage programs

7 Core EHS Commitments Protect the health and safety of all stakeholders affected by any aspect of our operations through continuous improvement of company practices. Conduct all operations responsibly to minimize and mitigate environmental impacts while respecting the needs of the communities in which we operate.

8 EHS Management System Integrity Matters is our Environment, Health and Safety management system for the Hunt family of companies It presents a series of expectations and core business practices that apply to all employees and contractors who work for Hunt

9 Hunt Achievements First major hydrocarbon project to pass IFC EHS Performance Standards (Peru LNG, 2007) Developed innovative best practices for contractor management: Clearly defined roles and responsibilities Clearly defined performance standards Detailed implementation procedures Continuous monitoring and improvement Contractual incentives Approach to contractor management recognized by Society of Petroleum Engineers, Rio (Summer 2010) Invited by the multilateral agencies to share best practices with other Banks, NGOs and Consultants (Peru LNG Project, Winter 2010) Best Practices are applied to new projects

10 Recent Awards 2011 Social Responsibility and Corporate Sustainable Development Award. Peru 2021 Award, second place in the Community Category for Allin Minkay program. (PERU LNG) 2011 Social Responsibility and Corporate Sustainable Development Award. Peru 2021 Award, second place in the Government and Civil Society Category for Archaeological program. (PERU LNG) 2010 CAREC 2010 Social Responsibility Award, CAREC 2010 Social Responsibility Award, First Place, for the Peru LNG For Pyme Project, operated by Hunt Oil Company of Peru 2009 Best Corporate Social Responsibility Campaign Hunt Global Partnerships, Petroleum Economist Magazine 2009 Lead Organization Award for Social Responsibility and Sustainable Development, Peru Mining, Petroleum and Energy National Society 2009 Social Responsibility Prize for Recycling Wastes, Remer, a National Not-for-Profit Organisation 2008 Latin American Deal of the Year PERÚ LNG Project Finance International Awards 2008 Middle Eastern Oil & Gas Deal of the Year Yemen LNG, Project Finance International 2008 Awards 2008 Best Health and Safety Project of the Year Hunt Oil Company for US, Canada and Peru Operations, Petroleum Economist Magazine

11 International Experience Canada US Guyana France Romania Iraq Jordan Niger Oman Ghana Yemen Togo Ethiopia Laos Peru Chile Argentina Madagascar Australia Onshore Offshore

12 Ecological Management in Peru Pacific Watershed High Sierras Region Eastern Region Llanura Costera Ica - Lima Apacheta Alto Sierra División de la Cuenca Hidrográfica Huamanga - Vishongo Cuenca Hidrográfica Campana Montañas de Murciélagos de Costa Alta Llanura de Huaytará y Cordilleras Bosque Montano Ecotono del Valle del Río Apurímac Valle del Río Yucay Valle del Río Torobamba Llanura Arenosa de Pisco División de la Cuenca Hidrográfica Pisco - Ica Cuenca Hidrográfica Pampa - Palmintos Valle del Río Vinchos Sierra de Sillaccasa

13 Special Method Statements for all Sensitive Ecological Units

14 Strong Contractor Management - No Side-castings (Patibamba Ridge, Peru)

15 Safeguarding Cultural Heritage Hunt values and respects cultural heritage in all our areas of operation We carried our one of the most extensive archaeological programs in Peru s history Complied with all national laws and international best practices Completed excavation of 115 sites on the pipeline route Completed the rescue of 131 chance finds

16 Site 36-03, avoided by re-routing pipeline

17 Drilling in a Wildlife Park, USA Operating in sensitive environments requires: Early and ongoing consultation with stakeholders Aligning ecological management practices with regional plans Systematic and cooperative approach to compliance Understand the requirements Comply and add to knowledge base Execution of compliant well designs and operations plans Robust EHS controls and contingency plans Myette Point, Louisiana (2010)

18 Operations in a Wildlife Park, USA Operations at Myette Point, Louisiana are subject to a State Wildlife Management Plan

19 Community Relations Hunt delivers high standards of environmental protection We maintain social integrity and community safety We provide benefits to host communities (partnerships, sponsorships, jobs) We conduct regular evaluations to assess opportunities for improvement We adapt to the concerns and views of interested and affected parties We provide stakeholders with opportunities to see our environmental management programs

20 Hunt Oil Company: Exploration Business Units Canada Europe Middle East USA South America Australia 20 20

21 US Operations: 2012 Bakken/TFS Burnett Ranch CO2 Marcellus/Utica Amacker Tippett Eagle Ford Gas Oil GOM

22 International Operations: May 2012 Kurdistan, Iraq Canada Peru Block 76 Romania Peru Block 56

23 Northern Iraq Simrit #2: Oil Discovery Testing multiple pay zones Simrit #1: Continuous oil shows m. Jurassic test had inflow but no surface recovery. Ain Sifni Simrit#3: Drilling Maqlub Structure On trend with & updip from Bardarash Discovery. Drill Q Ain Sifni License Kurdistan Region of Iraq Hunt: 75% Afren: 25%

24 Australia 2650 km2 3-D seismic acquired Brewster Updip Prospect WA-425-P 88,000 acres updip to Burnside Discovery Saddle separated from 350Bm 3 Ichthys Field > 141Bm 3 Unrisked Potential Structural-stratigraphic trap 2013 well planned BROWSE BASIN Possible Drill Location Browse Basin Hunt: 4 Licenses Key License: WA-425-P Hunt: 30% WI; Operator Partners: SK, Mitsui

25 Canada Focus on the Deep Basin in Western Alberta Multi-zone potential Scaling up program Bilbo Wanyandie Technology applications making formerly uneconomic rocks economic Liquid rich gas production Pine Creek Bronson Horizontal drilling 3-D seismic targeted drilling Crystal

26 Peru & Yemen LNG Peru LNG Yemen LNG 26

27 Peru LNG Project Summary 4.45 mmtpa single train liquefaction plant 170 km south of Lima Marine jetty and breakwater for loading LNG vessels 408 km 34 gas pipeline Gas purchased from Block 56 and Block 88 licensors. 4.2 TCF total commitment LNG sales contract for 4.2 Metric Tons/Annum on FOB basis with Stream (Repsol Gas Natural partnership) PLNG Awards: Entrepreneurial Creativity for Let s Do Business radio program Peru 2021 Sustainable Development Award in 2 categories as Natural partnership)

28 PERU LNG

29 Yemen LNG 2011 Highlights Quantities sold in 2011: 103 Cargoes Tbtu Sales by destination to date: o Americas 27% o Europe 15% o Asia 58% 2012 Projected deliveries 106 cargoes Project completion (2 nd Train) in Q3 2012

30 2011 Worldwide Proven Reserves Hunt Net Proved Reserves: > 113B m 3 gas equivalent Product Type Region Western 2% West TX HOCC 2% 0% Colombia 0% STX & GC 4% NGLS 11% Oil 13% Yemen (Jannah) 0% YLNG 23% Gas 76% Peru 68%

31 HOC Europe SWOT Strengths Capability / experience at management and technical level Operator of choice Well established network of consultants Established in Romania and Italy Weaknesses Competing capital projects Delays due to bureaucracy Eurozone / regional economic difficulties Internal / external control needs. Human resources. Opportunities Exploration and development acreage becoming available due to dissolution of state entities Under-capitalised companies with significant acreage positions, commonly with little operational experience. Under-utilisation of modern technologies Premier pricing (oil and gas) Continued (growing) dependence on external supplies Educated, enthusiastic, young, available, workforce in Eastern Europe. Threats Environmental lobby, and increasing environmental legislation Local, regional, and national governmental processes permitting, ratifications, data access Changes in tax legislation Managed pricing structure in some markets Partner non-alignment

32 HOC Europe BREAM Build Grow positions in Romania, Italy, Turkey via Farm-ins Bid Rounds Divestitures Identify new areas of interest within the region and access via partnerships, farmin, buy out. Opportunities must be drillable within 3 years, have a range of opportunities, and significant upside value Define other value chain opportunities and transfer internal knowledge and expertise. Resolve Develop strategic / financial partnerships Leverage lower priority items Develop drilling opportunities Achieve early cash flow Hire experienced, quality personnel. Hire local staff, mentor and train to fill most positions within 2-3 years. Exploit Identify and access exploration, development, and production acreage becoming available due to dissolution of state entities Access opportunities via poorly capitalised / in-experienced companies Countries / basins / companies not utilising modern technologies. Identify and develop supplies into Europe from external sources to take advantage of premium market prices Rapidly train, develop and expose local workforces througout the organisation Avoid / Manage Monitor and be involved in processes and legislative changes - be a "leader". Promote and detail company's HSE qualities Promote open communication with all stakeholders Operate where possible Identify potential local markets with higher price stucture / develop integrated approach to maximise profit.

33 Environmental, Social, Health, and Safety Set goals and objectives for the region / operations Develop, implement and monitor systems and practices. Identify areas for improvement. Review regularly. Ensure understanding via multi-lingual, open and frequent communication within and outside the organization. Integrate corporate philosophy, planning, and procedures with ISO, OECD, EPE, EBRD, national, regional and local standards Adjust current corporate ESHS policies accordingly. Translate into local language. Monitor, be involved with, and analyse ESHS programs during operations. Devise and implement plans for working with permitting agencies within operational areas. Devise and implement plans for developing ties with the local communities within operational areas. ISO 9001, 14001, and OHSA certification

34 OMV Petrom and HOCOR Joint Venture Agreement between the 2 companies signed in September Blocks to be explored covered an area of > 8000 km 2 HOCOR established an office in Bucharest in October Operations commenced with 2D seismic operation in December Partnership spudded its first well, 20 Adjud, in August Partnership has worked closely to acquire and reprocess quality seismic data Partnership has a commitment to improve EHS in its operations and amongst its contractors

35 OMV Petrom - HOCOR JV Exploration Blocks >1700 km 2D acquired in two campaigns > 1600km of 2D reprocessing Drilling of 20 Adjud Currently reentering well to test Planning drilling campaign for latter part of this year Performed geochemical analyses of 40+ liquids and 28 gases. High resolution biostratigraphy and sequence stratigraphic study.

36 OMV Petrom - HOCOR JV Exploration Blocks

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