RESTRUCTURING & 2002 INTERIM RESULTS PRESENTATION 16th September 2002
Restructuring & 2002 Interim Results Presentation PRESENTATION Introduction Sir David John Results & Restructuring John van der Welle Outlook for New Premier Charles Jamieson Make a Difference
Restructuring & 2002 Interim Results Presentation RESULTS Make a Difference
Restructuring & 2002 Interim Results Presentation RESULTS OVERVIEW Production 50.2 mboepd (2001: 35.3 mboepd) up 42% Turnover 115.2m (2001: 94.5m) up 22% Operating profit 52.7m (2001: 44.6m) up 18% Statutory profit after tax…
Restructuring & 2002 Interim Results Presentation PROFIT & LOSS ACCOUNT 2002 2001 Production (mboepd) 50.2 35.3 Working interest production Realised oil price (/bbl) 23.38 26.71 Realised gas price (/mcf) 3.19 2.19 Hedging - no…
Restructuring & 2002 Interim Results Presentation CASHFLOW 2002 2002 2001 (As reported) (Incl. JVs) (Incl JVs) m m m Net cashflow from operations 62 80 62 Increase in line with higher net revenues Net interest (9) (11) (14)…
Restructuring & 2002 Interim Results Presentation OPERATIONAL HIGHLIGHTS Production ahead of target of 45-50 mboepd Kyle 4th well on stream 100% production capacity availability in Myanmar/Indonesia Myanmar near DCQ Efficiency…
Restructuring & 2002 Interim Results Presentation RESTRUCTURING Make a Difference
Restructuring & 2002 Interim Results Presentation RESTRUCTURING Transformation into a fully independent E&P company Transfer of Myanmar and just over half of Indonesian West Natuna block A to Petronas and Hess Cancellation of…
Restructuring & 2002 Interim Results Presentation BACKGROUND 1995 - Premier acquires Pict Petroleum and Hess becomes 25% shareholder in Premier 1999 - Petronas and Hess subscribe at 25p/share for 136m of new equity giving each 25%…
Restructuring & 2002 Interim Results Presentation BENEFITS OF RESTRUCTURING Fully independent company able to pursue re-focused strategy aimed at early value realisation as stated in March 2002 Significant NAV per share accretion…
Restructuring & 2002 Interim Results Presentation CONSIDERATION million Myanmar 400 Indonesia - Amerada Hess - 23% block A 163 - Petronas - 15% block A 107 Total 670 777.0m ordinary shares 25p(1) 282 32.8m convertible shares…
Restructuring & 2002 Interim Results Presentation VALUATION METRICS Core Net Asset Value of Proven and Probable reserves at 30 September 2002 (excluding exploration and appraisal, technical reserves and other upsides) 10% discount…
Restructuring & 2002 Interim Results Presentation PROFORMA BALANCE SHEET Proforma Balance Balance Sheet at Impact of sheet at 30 June 2002 restructuring 30 June 2002 m m m Cash (including JVs) 144 89 233 Debt (including JVs)…
Restructuring & 2002 Interim Results Presentation RESTRUCTURING - KEY STEPS Approvals/consents required - independent shareholders (EGM), lenders, governments, Court Creation of New Premier listed holding company under Scheme of…
Restructuring & 2002 Interim Results Presentation NEW PREMIER RESERVES AND PRODUCTION New Premier Working Interest Production 2P Reserves 218 mmboe 40,000 UK 35,000 14% Indonesia 55% 30,000 25,000 boepd 20,000…
Restructuring & 2002 Interim Results Presentation NEW PREMIER SUMMARY Post Existing Restructuring Production (mboepd) 45-50 30-35 Reserves (mmboe) 514 218 % UK & Indonesia 54% 69% Oil/gas reserve mix 14% Oil 20% Oil Capex…
Restructuring & 2002 Interim Results Presentation OUTLOOK FOR NEW PREMIER Make a Difference
Restructuring & 2002 Interim Results Presentation PREMIER STRATEGY High impact explorer and commercial dealmaker Steady state base business - consistent 5-8 year cashflow to fund business development Cycle out/farm down assets…
Restructuring & 2002 Interim Results Presentation GROWTH TRACK RECORD 1997 - 2001 275 mmboe of 2P reserves booked (an increase of 140%) Production replacement of over 400% Top quartile exploration finding costs of 1/boe Make…
Restructuring & 2002 Interim Results Presentation EXPLORATION & BUSINESS DEVELOPMENT STRATEGY Geographical focus Existing areas (South & South East Asia, North West Europe) West Africa Other - opportunistic Good rocks, good terms…
Restructuring & 2002 Interim Results Presentation PREMIERS EXISTING BUSINESS UNIT EXPLORATION Pakistan Indonesia Make a Difference
Restructuring & 2002 Interim Results Presentation PKP: PAKISTAN EXPLORATION Two PKP operated exploration wells to be drilled in 2002: Benir-2: Dumbar block spudded 30/6/02 Zirkani-1: Dumbar block Pakistan to spud Q4…
Restructuring & 2002 Interim Results Presentation PAKISTAN EXPLORATION: DUMBAR EXPLORATION LICENSE Two exploration wells will be drilled in 2002 in the Dumbar block; Benir-2 spudded 30/6/02 Zirkani-1 and Zirkani-1 will spud…
Restructuring & 2002 Interim Results Presentation INDONESIA EXPLORATION Natuna A Area IV Kerteh Malaysia The exploration drive in Kuala 2002 is to test prospects Lumpur in Area IV, Natuna Sea. Two large, independent oil…
Restructuring & 2002 Interim Results Presentation INDONESIA: NATUNA SEA BLOCK A, AREA IV EXPLORATION NW Natuna Sea Block I Kuda Nil-1 will spud Premier Malaysia Block A Indonesia mid October 02. Most NW Natuna Sea Block II…
Restructuring & 2002 Interim Results Presentation PREMIERS NEW VENTURES 2002/3 UKCS: West of Shetland North East India Gabon Guinea Bissau Existing Business Unit New Venture Country Make a Difference
Restructuring & 2002 Interim Results Presentation GUINEA BISSAU EXPLORATION Sinapa-1 well drilled Q1; P&A Senegal with oil shows. Encountered oil above a salt Guinea-Bissau diapir, then mechanical difficulties prevented the main…
Restructuring & 2002 Interim Results Presentation GABON EXPLORATION World-class play system formed by: mature pre-salt syn-rift Sett Cama lacustrine source rocks Gabon overlain by transgressive Gamba sheet sand, with excellent…
Restructuring & 2002 Interim Results Presentation UKCS: WEST OF SHETLANDS Marjun discovery well, Premier has farmed in to Faroes 6004/16-1Z BGs equity in Amerada Hess operated 204/16. Well 204/16-1 spudded Foinaven 1/9/02, and…
Restructuring & 2002 Interim Results Presentation NE INDIA EXPLORATION China Several low cost entries into oil and gas exploration opportunities have been Bhutan India finalised and are currently awaiting Indian Government…
Restructuring & 2002 Interim Results Presentation 2H 2002 DRILLING SCHEDULE 2002 June July Aug. Sept. Oct. Nov. Dec. - Low / Medium Risk Pakistan : Benir-2 - Gross 750 bcf - Premier Net 37.5% - Low / Medium Risk Pakistan :…
Restructuring & 2002 Interim Results Presentation PREMIER - THE INVESTMENT CASE Focus on exploration & commercial dealmaking Top quartile exploration record, Leverage to significant value add/share price reputation & experience…
RESTRUCTURING & 2002 INTERIM RESULTS PRESENTATION 16th September 2002
Restructuring & 2002 Interim Results Presentation APPENDIX Make a Difference
Restructuring & 2002 Interim Results Presentation OPERATIONS Make a Difference
Restructuring & 2002 Interim Results Presentation 2002 PERFORMANCE DELIVERY Efficiency drive continues to deliver cost reductions Operating cost savings Administration costs down 17% Reduced unit production costs - down 17%…
Restructuring & 2002 Interim Results Presentation OPERATIONS HIGHLIGHTS MYANMAR 100% production capacity availability Production rates near DCQ Further ramp-up of DCQ to 260 mmscfd in Q4 Capacity upgrade ahead of target - now able…
Restructuring & 2002 Interim Results Presentation OPERATIONS HIGHLIGHTS PAKISTAN Production up 34% Dumbar first well spudded rigorous environmental management leads to successful start to drilling Zamzama continues to…
Restructuring & 2002 Interim Results Presentation OPERATIONS HIGHLIGHTS UK Production up on last year - in spite of Kyle gas line blockage Kyle gas pipeline returned to service 4th Kyle well brought on stream Fife Area successful…
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