Horizon Oil as an investment proposition – Material, stable net operating cash flow from China and New Zealand of US$50 – 60 million pa over the period 2017 – 2022 – Ongoing tight control over field operating expense, exploration and development expenditure and administrative expenses – Positioned to withstand future oil price volatility with free cash flow breakeven of US$33/bbl; downside further protected with oil price hedging and loss-of-production insurance in place – Stable financial position, with good track record in reducing debt; debt expected to be paid down in ~4 years – Material upside potential attached to large, appraised gas-condensate resource in Papua New Guinea; development planning for a 1.5 mtpa mid-scale LNG scheme, Western LNG (WLNG), at an advanced stage Horizon Oil is poised for a share price re-rating off the back of:- Strong, long-lived production profile and cash flow Enviable free cash flow breakeven per barrel compared to peer companies Stable financial position, with steadily decreasing debt Strategic stake in large oil and gas development project in Papua New Guinea