ASDFG
An Introduction to Hunt Oil Company
• Who We Are
• How We Operate
• Where We Operate
• Examples of Our Operations
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.
Overview of Hunt Oil Company
Hunt corporate headquarters in Dallas, Texas
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
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)
The Company is responsible for discovering and developing some of largest oil and gas fields in the world, including:
Yemen: Discovered over 160mm m3 of oil and 339B m3 of gas
Fairway Oil Field (East Texas): Over 30mm m3 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 m3 of oil
Camisea (Peru): Developed over 283B m3 of gas
Bakken / Three Forks (North Dakota): One of top Bakken operators with over 240 gross wells drilled to date
Overview of Hunt Oil Company
1934 1974 1976 1984 1986 1992 2000 2001 2004 2008
75 Years of Oil & Gas Experience
1934: Hunt Oil Company established by H.L. Hunt, the late father of Ray Hunt
1974: Ray Hunt becomes Chairman of the Board
1976: Achieved first int’l success in the North Sea
Significant discovery, 80 miles from the nearest oil production
1984: Discovered the Alif Field in Yemen, the first oil field in Yemen. > 1 billion barrels of oil discovered
1986: Commissioned 10,000 Bopd refinery
Constructed 423-km pipeline across mountains to the Red Sea
Yemen joins the ranks of oil exporting countries
1992: Acquired domestic assets from Pacific Enterprises for $371MM
380 Bcfe (60% Oil) in Rocky Mountains, Mid Continent and Gulf Coast
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
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
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)
Current Hunt corporate headquarters in Dallas, Texas
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
History of Hunt Oil
2012
Hunt’s Broad Expertise
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
Geology
Production optimization across multiple formations Primary, secondary, and tertiary recovery Strong metrics for drilling and completing efficiency and production up-time
Engineering / Operations
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
Large-Scale Project Execution
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
Health, Safety & Environmental
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.
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
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
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
International Experience
Onshore Offshore
US
Yemen Oman
Canada
Togo Ghana
Iraq Jordan
Niger
Argentina Chile
France
Madagascar
Laos Guyana
Ethiopia
Australia Peru
Romania
Ecological Management in Peru
High Sierras Region
Eastern Region
Pacific Watershed
Llanura Costera Ica - Lima
División de la Cuenca Hidrográfica Pisco - Ica
Llanura Arenosa de Pisco
Montañas de Murciélagos de Costa Alta Llanura de Huaytará y Cordilleras
Cuenca Hidrográfica Pampa - Palmintos
Apacheta Alto Sierra
Valle del Río Vinchos
División de la Cuenca Hidrográfica Huamanga - Vishongo
Valle del Río Yucay
Sierra de Sillaccasa
Valle del Río Torobamba
Cuenca Hidrográfica Campana
Bosque Montano Ecotono del Valle del
Río Apurímac
Special Method Statements for all Sensitive Ecological Units
Strong Contractor Management - No Side-castings (Patibamba Ridge, Peru)
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
Site 36-03, avoided by re-routing pipeline
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)
Operations in a Wildlife Park, USA
Operations at Myette Point, Louisiana are subject to a State Wildlife Management Plan
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 20
20
Canada
USA
South America
Europe
Middle East
Australia
Hunt Oil Company: Exploration Business Units
Marcellus/Utica
Bakken/TFS
Burnett Ranch CO2
Gas Oil
Amacker Tippett Eagle Ford
GOM
US Operations: 2012
Can
ada
Kur
dist
an, I
raq
Peru B
lock 76 R
omania
Peru Block 56
International Operations: May 2012
Northern Iraq
Ain Sifni
Simrit #2: Oil Discovery
Testing multiple pay zones
Maqlub Structure On trend with & updip from
Bardarash Discovery. Drill Q1-2013
Simrit#3: Drilling
Simrit #1: Continuous oil shows 1100-2070m.
Jurassic test had inflow but no surface recovery.
Ain Sifni License Kurdistan Region of Iraq Hunt: 75% Afren: 25%
Australia
BROWSE BASIN
• 2650 km2 3-D seismic acquired • Brewster Updip Prospect WA-425-P • 88,000 acres updip to Burnside Discovery • Saddle separated from 350Bm3 Ichthys Field • > 141Bm3 Unrisked Potential • Structural-stratigraphic trap • 2013 well planned
Possible Drill Location
Browse Basin Hunt: 4 Licenses Key License: WA-425-P Hunt: 30% WI; Operator Partners: SK, Mitsui
Canada
Crystal
Pine Creek
Bronson
Wanyandie Bilbo
Focus on the Deep Basin in Western Alberta
Multi-zone potential
Scaling up program − Technology applications making
formerly uneconomic rocks economic
− Liquid rich gas production − Horizontal drilling − 3-D seismic targeted drilling
26
Peru & Yemen LNG
Yemen LNG
Peru LNG
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)
PERU LNG
Yemen LNG – 2011 Highlights
Quantities sold in 2011: − 103 Cargoes – 349.3 Tbtu − Sales by destination to
date: o Americas 27% o Europe 15% o Asia 58%
2012 Projected deliveries – 106 cargoes − Project completion (2nd
Train) in Q3 2012
2011 Worldwide Proven Reserves
Product Type Region
Oil13%
Gas76%
NGLS11%
Hunt Net Proved Reserves: > 113B m3 gas equivalent
Peru68%
YLNG23%
Yemen (Jannah)0%
STX & GC4%
Western2% West TX
2%
HOCC0% Colombia
0%
HOC Europe SWOT
• Strengths • Capability / experience at management
and technical level • Operator of choice • Well established network of
consultants • Established in Romania and Italy
• 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.
• Weaknesses – Competing capital projects – Delays due to bureaucracy – Eurozone / regional economic
difficulties – Internal / external control needs. – Human resources.
• 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
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.
• 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
• 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.
• 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.
Environmental, Social, Health, and Safety 2012- 2016 • 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. 2013 • 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 18001 certification
OMV Petrom and HOCOR Joint Venture
• Agreement between the 2 companies signed in September 2010.
• Blocks to be explored covered an area of > 8000 km2
• HOCOR established an office in Bucharest in October 2010.
• Operations commenced with 2D seismic operation in December 2010.
• Partnership spudded its first well, 20 Adjud, in August 2011.
• 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
OMV Petrom - HOCOR JV Exploration Blocks
• >1700 km 2D acquired in two campaigns
• > 1600km of 2D
reprocessing • Drilling of 20
Adjud • Currently re-
entering 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.
OMV Petrom - HOCOR JV Exploration Blocks