Short Term Trading Week Starting: 18 Sept, page-25

https://investors.horizonoil.com.au/irm/PDF/2413_0/RIUGoodOilConferencepresentation

Horizon Oil as an investment proposition

Strong, long‐lived production profile and cash flow • Best‐of‐peer‐group net operating cash flow from China and New Zealand, to average US$50 – 60 million pa over the period 2017 – 2022, with modest future capital spend • Free cash flow breakeven of US$32/bbl resulting from ongoing tight control over field operating expense, exploration and development expenditure and administrative expenses • Stable financial position, with steadily decreasing debt – downside further protected with oil price hedging and loss‐of‐production insurance Strategic stake in large oil and gas development project in Papua New Guinea • 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

Share price •

HZN significantly undervalued with respect to peer group on net operating cash flow alone