2009 Half-Yearly Results Presentation 27th August 2009
Forward looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown…
Agenda 2009 highlights Simon Lockett Finance Tony Durrant Operations update Neil Hawkings Exploration update Andrew Lodge Summary Simon Lockett 27th August 2009 Page 3
2009 highlights a transformational first half OGP survey results: Premier best performing company for TRIF* in Drilling HSE Production TRIF* performance in top quartile Premier…
Strategy Strategy Progress Production forecast (kboepd net) Targeting production Projecting 60,000- growth to 75,000 bopd 65,000 boepd at end 90 by end 2013 2011 post start up of North Sea developments Gajah Baru and Chim 80 Asian…
Half-yearly financial results 27th August 2009 Page 6
Production and income statement 6 months to 6 months to 30 Jun 2009 30 Jun 2008 Average Brent oil price was 52 (1H 2008: Working Interest Production (kboepd) 39.7 38.0 110/bbl) Entitlement Interest Production (kboepd) 37.0 33.1…
Oilexco acquisition accounting (at completion) million Purchase consideration 501 Acquisition expenses (external) 10 Cost of Acquisition 511 Allocation: Exploration and evaluation assets Nil Oil and gas properties 569 Deferred…
Hedging Policy remains to underwrite value of projects by putting in low cost floors 2009 Hedging Transactions: Existing 40/100 floor/cap revised to 50/80 for 2010 and 2011 for half existing oil production New hedging in place for…
Cash flow 6 months to 6 months to 30 Jun 2009 30 Jun 2008 m m Estimated Capex split (m) Cash flow from operations 142 260 H1 2009 H1 2008 Taxation (29) (69) Development 70 51 Operating cash flow 113 191 Exploration 41 23…
Net debt and funding programme Current balance sheet Development capex forecast (2P reserves) (m) m 600 Opening net cash 117 North Sea developments Asian developments Net cash out flow (534) Existing production 500 Equity issued…
Operations update 27th August 2009 Page 12
Production update Production (Working Interest) Deliveries from expanded plants meeting (boepd) North Sea strong Pakistan gas demand Asia 50000 Middle East-Pakistan Good production performance from Anoa meeting strong Singapore gas…
MEP Pakistan producing fields Pakistan Production Kadanwari Capitalising on completed plant expansions to (boepd) Bhit take advantage of strong local gas demand Zamzama Qadirpur Ongoing infill development drilling and 16000…
Asia Indonesia West Natuna Block A Continued strong demand from Singapore market Consistent overperformance on Anoa allowing 3 well development programme to be postponed to 2010 FEED work underway on Anoa compression project…
Asia Indonesia West Natuna Block A Gajah Baru Delivering significant cost reductions: Latest capital expenditure estimate 196mm net to Premier Positioned to capture lower rig rates and development drilling costs First gas 2011 meets…
Asia Indonesia North Sumatra Block A FEED completed in February, further optimisation studies ongoing Latest cost estimate 210mm net to Premier EPCI and rig tenders being prepared with bids targeted for year end PSC signature for…
Asia Vietnam Block 12W Block equities (post PV back-in) Premier Oil plc 53.125% PetroVietnam 15.000% Santos 31.875% Chim So Petro-Vietnam announced intention to back in for 15% Acquisition of additional 21.25% from Delek for 72…
North Sea UK Balmoral Area Average daily contribution of 12,600 boepd Riser renewal work accelerated from 2010 into 2009 Debottlenecking work nearing completion Gas lift system Produced water system Subsea Pump Infill drilling…
North Sea UK Shelley Development stalled by Oilexco administration Post-acquisition: Contract re-negotiated with Sevan Innovative short duration risk sharing contract Hook up completed and onstream August 6th Since start-up…
North Sea UK Scott Area Successful infill wells 2 and 3 leading to fourth well Expect full plant availability in H2 2009 Partnership actively developing long term 3rd party business strategy Near term satellite developments…
North Sea UK Huntington Premier equity in Block 22/14b is 40% Concept selection process ongoing: targetted for end 2009 tie backs to hosts eg ETAP FPSO/FPV options First production forecast for 2012 Unitisation process underway to…
North Sea pre-development portfolio North Sea pre-development portfolio has significantly increased due to: Exploration success in Norway Grosbeak Acquisition of Oilexco Contingent resource base of 75 mmboe Fry Caledonia…
Reserves and resources Reserves and resources (mmboe) 500 2C reserves 450 2P reserves 181 400 350 300 250 265 200 150 100 50 0 2005 2006 2007 2008 Proforma 30 June 2009 27th August 2009 Page 24
Production and development forecast Production forecast 2P reserves development capex forecast (kboepd net) (m) 90 600 North Sea developments North Sea developments Asian developments 80 Asian developments Existing production…
Exploration update 27th August 2009 Page 26
Exploration strategy Currently focused on the growth of the companys resource base through Greenfield discoveries in areas of expertise. In 2009/2010 this Greenfield focus is on three basins: Asia: Nam Con Son Basin (Vietnam and…
Asia Vietnam Block 07/03 First well completed in June 2009 Flow test from two zones 3,265 bopd plus 8.1 mmscfd through 48/64 choke Premier 30% equity and operator Discovery in sandstone reservoirs of the Thong Mang Cau, Upper Dua…
Asia Indonesia Tuna NW Gajah Laut SE 10km Tuna 65% operated interest Discovery in Vietnam has reduced the risk on Tuna acreage 3D seismic planned for Q4 2009 Two-well programme beginning Q3 2010 27th August 2009 Page…
West Africa Congo Marine IX Frida Operated by Premier Well spudded 23 July 2009 Target depth reached on 22 August 2009; no hydrocarbons encountered Well will be plugged and abandoned Results being integrated to determine potential…
MEP Pakistan Bado Jabal Vertical well spudded Q1 2009 Targeting the deeper Lower Goru (Early Cretaceous) and Chiltan (Jurassic) Limestone horizons Reserves target 1 tcf Premiers equity 6% 27th August 2009 Page 31
North Sea exploration and appraisal portfolio Evaluation of acquired Oilexco portfolio ongoing Blbaer Two licences awarded from the 25th Grosbeak Licensing Round: Block 15/23e is adjacent to the Bugle area, near the Scott Field…
North Sea UK Bugle North Bugle North (15/23d, 15/23e) Premier 41% equity and operatorship Nearfield exploration opportunity Reserves estimate 5-7-10 mmboe Adjacent Bugle discovery flowed 7,398 bopd and 9.06 mmscfd gas Drilling…
North Sea UK Moth Moth 50% equity in 23/21 57.5% operated equity in 23/22b 70% operated equity in 7/7d and 7/10a Moth discovery max flow rate 24.4 mmscfd gas and 2460 bopd Appraisal of Moth and potentially a deep pre-…
North Sea Norway Block 35/12, 36/10 Grosbeak/Gnatcatcher Successful Grosbeak well completed in July 2009 Operated by Wintershall Close to nearby infrastructure Hydrocarbons in both Upper Jurassic and Middle Jurassic sandstones…
North Sea Norway Bream/Gardrofa Bream (17/12) Brent age oil discovered 1971, close to Yme Field 17/12-4 and its sidetracks wells appraised this discovery, testing 2,516 boepd Operated by BG Estimated reserves 39-50-63mmboe…
North Sea Norway Blbaer Blbaer (34/2,5) Premier 15% equity Operated by BG Reserves estimate 15-30-75 mmboe Drilling planned for late 2009/early 2010 34/2-2 34/2-3 34/2-4 Blbaer Jordbaer 27th August 2009 Page 37
North Sea Norway Greater Luno Greater Luno (16/1[part], 16/4) 30% interest Operated by Lundin Targeting Jurassic sandstones related to the Luno discovery (95mmboe) on adjacent Lundin-operated block; Luno extension currently…
Exploration outlook 2009 2010 Asia Q3 Q4 Q1 Q2 Q3 Q4 Vietnam: 07/03 Beta 104-109/05 Indonesia: Tuna Natuna Sea Block A Anoa Deep N. Sumatra A Buton West Africa Congo: Marine IX Ida North Sea Norway: PL359 (16/1,4) Greater…
Summary 27th August 2009 Page 40
What next Strategy Tactics and execution Targeting production growth North Sea Business Unit to 75,000 bopd by end 2013 Build on capability now organisation is integrated Progress Asian programme Development projects proceeding…
Appendix 27th August 2009 Page 42
HSE performance Recordable Incident Rate has been Association of Oil and Gas Producers declining Benchmarking Survey, H1 2009 Total recordable injury rate - Production Performance is top quartile in the industry Per million hours…
27th August 2009 Page 44 www.premier-oil.com 27th August 2009
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