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 Introduction Simon Lockett Operations update Neil Hawkings Exploration update Andrew Lodge Financial results Tony Durrant Outlook Simon Lockett 23 August 2012 Page 2
Premier today ... is in an even stronger position than ... which is reflected in our first half six months ago ... results Stronger production and resource base Production up 58% year-on-year; pro-forma resources of 725 mmboe…
Operations update 23 August 2012 Page 4
Production update Production averaged 58,400 boepd, up 2012 Production Huntington/Rochelle Other UK 58 per cent (bbls/day) Pakistan & Mauritania Vietnam Q2 production in excess of 60,000 boepd 80,000 Indonesia Chim So and Gajah…
Chim So and Dua Chim So 1H Production averaged 26,000 boepd; higher level of uptime achieved in Q2 Currently producing at 35,000 boepd Water injection has commenced and rates are ramping up to support reservoir pressure Two well…
Natuna Sea Block A GSA 1 (Anoa) 1H production at maximum capacity Block As share of deliveries under GSA1 was 47% against a contractual market share of 37% Block As share of remaining reserves dedicated to GSA1 was 64% at start of…
Anoa Phase 4, Pelikan and Naga Anoa Phase 4 Pelikan and Naga Project will increase Anoa reserves by 200 bcf Pelikan and Naga will develop 150 bcf of gas by lowering surface flowing pressures EPCI contract awarded in May Also…
Huntington and Rochelle Huntington Rochelle Development drilling completed in August Drilling of East Rochelle, the first of the two To schedule and on budget development wells, is in progress Better than expected well results…
Solan Premier is Operator with 60% equity All significant contracts have been awarded Procurement and fabrication of platform (Burntisland Fabrications) Heavy lift installation (Heerema) Subsea tank fabrication (Dry Docks World…
Solan development schedule 2012 2013 2014 Government Approval First Oil Platform Tank Drilling Installation, Hook-up and Commissioning FEED Design and Procurement Construct 23 August 2012 Page 11
Catcher update Significant licence changes Premier increased stake to 50% and appointed operator Strengthened partnership to progress development Time is needed to achieve consensus within new JV Concept Selection work JV agreed…
Non-operated projects Bream Completed SPA with Skeie in July; increased equity in Bream to 40% FPSO and SURF FEED near completion Operator planning project sanction in October Cost pressures Scope for area development exists…
Sea Lion transaction rationale Progresses Premiers strategy of growth through Pro-forma 2P Reserves and 2C Contingent Resources (mmboe) investment in high quality development projects 800 Provides a further operated core area for…
Sea Lion development plan FPSO in 450m water depth; tanker offloading Associated gas used as fuel or re-injected 22 producers, 13 water injectors and a gas injector, drilled from 3 subsea centres Insulated flowlines and risers…
Wax management Chim So vs Sea Lion The wax content of the Sea Lion crude is significantly less than the Chim So crude However, the reservoir and seawater temperatures at Sea Lion are significantly lower than Chim So Chim So Sea…
Logistics No requirement for supply bases in Africa or South America This model successfully used for exploration and appraisal Cost structure assumed in base case 23 August 2012 Page 17
Provisional Sea Lion development schedule 2012 2013 2014 2015 2016 2017 2018 Concept Selection Project Sanction First Oil STUDY DESIGN EXECUTE PRODUCE Concept Validation Studies FDP Preparation, Submission and Approval…
Exploration update 23 August 2012 Page 19
Exploration vision Deliver material resource and value to the company 1.6 billion boe resources over life of plan, at a finding cost of < 3/boe Opportunity to invest up to 500mm per annum from 2015 Focus on geologies (Rift or Frontal…
Prospective resource portfolio increased significantly during 1H 2012 Unrisked prospective resource portfolio 2,723 Unrisked Net Prospective Resource (mmboe) mmboe* Drillable Appraisal 169 (6%) 14 (1%) 616 mmboe in prospects 2,093…
Transforming the exploration portfolio Evaluate Drill Appraise Leads Prospects Mature Drillable Prospects Prospects Asia Block 121 Silver Singa / Sillago Kuda Laut Indonesia Buton: Benteng Mackerel Ca Voi Swordfish…
1 3 Asia 2 4 Anoa Deep success Phu Khanh Basin Play opener More than 4 wells planned Block 121 2013/2014 LEARNINGS Buton Success Block A Aceh & Establish commerciality 12W 07/03 Andaman Sea Matang to be drilled in Q4…
1 3 Pakistan assets 2 4 Net Cumulative Initial Reserves (bcf) 700 Premier has added 600 bcf of net reserves through conventional exploration 600 Exploration focussed on the Kirthar Frontal 500 Fold-belt and Foreland basin The…
1 3 Kenya 2 4 L10A & L10B Potential to extend East African successful plays into offshore Kenya (Tertiary rifts and Cretaceous fans) 2,535 km2 of 3D and 1030 km 2D acquired Preliminary dataset highlights prospectivity New 3D…
1 3 Iraq 2 4 SW Approximate position of Block 12 NE Premier (30%) has agreed to join Bashneft on Block 12 Gravity Map 8,000 km2 block in the foreland of the Zagros fold belt up dip from producing fields Multiple stacked…
1 3 North Sea 2 4 Pushing the plays wider Premier has the regional database to pursue amplitude Luno II supported Tertiary prospects throughout the Central North Sea (CNS) Inner Moray Firth Eocene prospects: Carnaby (drilled)…
1 3 Norway 2 4 Acquired three operated Norwegian Luno II concessions from Nexen for 5.5 million in 2011 Builds on Premiers knowledge in the CNS Consistent with the Play Master approach Adjacent to Premier-operated Freki…
1 3 PL539 Myrhauk Lead 2 4 Myrhauk Trym Field Myrhauk 3/7-4 SW NE SE NW PL 539 Targeted for early 2014 drilling Jurassic onlap to a basement high Mandal Mandal High Premier equity 40% High Target play Target play…
Falkland Islands PL032/033 Unrisked prospect and lead portfolio 1 billion boe (175 mmboe risked) Cretaceous fan and delta plays Deep Jurassic gas potential New 3D acquired and under evaluation PL023/024 Unrisked lead portfolio 2…
1 3 2012 New Venture activity 2 4 North Sea (Rift theme) UK and Norway Licence Rounds EnCounter partnership Asia (Rift and Frontal Fold Belt themes) Andaman Sea East Vietnam Frontier Basins of East Indonesia Rest of the World…
Exploration drilling programme 2012 2013 P50 gross unrisked Asia Q3 Q4 Q1 Q2 resource (mmboe) Risk Vietnam Block 121 Ca Voi 100 High Indonesia Block A Aceh Matang Century Rig 28 40 Moderate North Sea PL359 Luno II Bredford Dolphin 120…
Exploration delivering the strategy Key deliverables over the next 18 months... Established areas Drill effective plays tests at Luno II and Lacewing Mature drillable prospects for 2103/2014 drilling Mandal High (Norway) Inner Moray…
Financial results 23 August 2012 Page 34
Record profitability 6 months to 6 months to Highlights 30 June 2012 30 June 2011 Operating costs (/bbl) Working Interest production (kboepd) 58.4 36.9 1H 2012 1H 2011 Entitlement production (kboepd) 52.4 33.8 UK 33.5 34.2 Realised…
Group taxation position Tax charge UK Tax Losses/Allowances Position 6 months to 6 months to 30 Jun 2012 30 Jun 2011 30 Jun 2012 m m m Overseas 75.6 16.0 Tax losses/allowances brought forward 1,360 UK PRT 14.1 33.1 Losses/allowances…
Rising cash flows 6 months to 6 months to Estimated capex split (m) 30 June 2012 30 June 2011 2012 m m Development 207 Cash flow from operations 466 246 Exploration 111 Taxation (141) (4) 318 Regional split (m) Operating cash…
Strong liquidity position at 30 Jun 2012 at 31 Dec 2011 m m Cash 290 309 Bank debt (316) (484) Bonds (573) (341) Convertibles (232) (228) Net debt position (831) (744) Gearing (net debt/net debt + equity) 31% 36% Cash and…
Fully funded programme Development Funding Investment Profile Development capex (US million) (US million) Dividend, exploration 1800 1800 Acquisitions / disposals Sea Lion and all existing projects Exploration expenditure Existing…
Outlook 23 August 2012 Page 40
What can you expect from Premier Strong growth in cash flow generation Rapidly rising production and cash flow (kboepd) 2.6 billion per annum once Catcher on-stream 100+ Higher impact exploration Luno II, Lacewing and Ca Voi 100…
www.premier-oil.com 23 August 2012 Page 42 23 August 2012
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