Horizon Oil : 2016 Financial Results Presentation

Performance

3% increase in production from prior year to 1,354,982 barrels, 13% increase in sales to 1,376,069 barrels at an average realised price (inclusive of hedging) of US$55.19 per barrel, generating revenue of US$76.0 million.

Cash

US$16.1 million cash on hand at 30 June 2016. Net cash from operating activities of US$44.2 million was offset by debt reduction, development and exploration drilling, and growth projects.

Production

Combined production rate of Maari and Beibu Gulf fields ~3,900 bopd net to Horizon Oil at year end.

Cumulative gross oil production since commencement, as at 30 June 2016: Maari field

31.6 million barrels; Beibu Gulf fields 12.3 million barrels.

Profit & Loss

An underlying profit of US$3.0 million, excluding the impact of US$147.5 million non-

cash impairment write-downs.

EBITDAX of US$54.0 million.

Capex

Capex spending was reduced by ~68% from prior year to US$24.5 million, US$17.5 million of the spending was related to finalisation of development work in New Zealand and an appraisal/development well in China.

Debt

Horizon Oil and its major shareholder, IMC Investments Limited, executed a subordinated secured non-amortising debt facility of US$50 million to refinance the remaining US$58.8 million convertible bonds, subject to shareholder approval.

Early redemption of US$21.2 million of 5.5% convertible bonds in the year, realising a US$1.2 million gain.

HSSE

Lost Time Injury Frequency Rate (LTIFR) of 0.0, Total Reportable Injury Frequency Rate (TRIFR) of 0.0 at 30 June 2016 over a 12 month rolling period (~60,000 manhours).

No significant loss of containment incidents (

China

Continued strong production from combined WZ 6-12 and WZ 12-8W fields in the Beibu Gulf producing

>9,300 bopd gross at year end (HZN share >2,500 bopd) with 3.4 mmbo gross produced during the year (0.90 mmbo net to HZN).

Aggregate Block 22/12 production for the last 6 months is approximately 27% ahead of budget.

WZ 12-8W-A6H appraisal and development well completed in December 2015 and producing from

WZ 12-10-2 field at year end. Production from the well exceeded 1,400 bopd after initial clean up period.

New Zealand

Production during the year of ~12,300 bopd (~1,230 bopd net to HZN), with 4.5 mmbo gross produced during the year (0.45mmbo net to HZN).

Successful completion of the Maari Growth Project, with production in excess of 16,000 bopd following

completion in July 2015.

Aggregate insurance proceeds for the 2013 repair of the Maari FPSO swivel and mooring lines including associated loss of production were confirmed during the year as US$10.2 million net to Horizon Oil, with US$8.1 million received during the year.

Papua New Guinea

Commercial and technical discussion progressed with Ok Tedi Mining Limited and regional mining operators with respect to gas sales from PDL 10 for power generation.

Progressed feasibility study for a Western Province-based greenfield mid-scale LNG project, while monitoring other gas commercialisation opportunities in the region.