2008 Full Year Annual Results Proposed 505 million acquisition of Oilexco North Sea Limited and rights issue to raise approximately 171 million 25th March 2009
Agenda 2008 Operational highlights and financial results Tony Durrant Production, development and reserves update Neil Hawkings Exploration update Robin Allan Acquisition and rights issue Simon Lockett 25th March 2009 Page 3
2008 operational highlights Progressed development projects Partner and government project approvals received Transportation agreements signed Key supplier contracts progressed Adjusting to a lower oil price environment Falling…
2008 financial highlights Production Up 2% to 36.5 kboepd (2007 35.8 kboepd) 2P Reserves Up 7% to 228 mmboe (2007 212 mmboe) Up 152% to 98 million Record profit after tax (2007 - 39 million) Up 31% to 352 million…
Production and income statement 12 months to 12 months to 31 Dec 2008 31 Dec 2007 Highlights Working Interest Production (kboepd) 36.5 35.8 Average 0.42/barrel premium to Brent Entitlement Interest Production (kboepd) 31.8 31.5 Realised…
Hedging Oil Hedging Oil /bbl Cap Fwd Curve Policy remains to underwrite value of 120 110 Floor projects by putting in low cost floors 100 90 80 Change in oil price environment 2H 2008 70 60 50 resulted in cash…
Cashflow 12 months to 12 months to 31 Dec 2008 31 Dec 2007 Estimated Regional split (m) m m Operating Cashflow Capex Cash flow from operations 555 360 North Sea 115 58 Taxation (203) (90) Asia 114 111 MEP 113 37 Operating cash…
Premiers financial strength Strong balance sheet position (324m cash at 31 Dec 2008) Pre-funded 800m capital programme, even at much lower oil prices: 7-year 250m convertible issued on favourable terms in May 2007 Undrawn bank…
Production update Production (Working Interest) Asia 2008 outturn in line with guidance of (boepd) Pakistan 36-38 kboepd West Africa North Sea 40000 Strong Pakistan and Singapore gas demand Coupled with good production 35000…
Year end 2007 vs 2008 reserves and resources 2P Reserves and Contingent Resources (mmboe) 400 Contingent Resources Additions and Revisions 350 Production Reserves 300 250 200 150 100 50 0 2007 Production Additions and…
End 2008 2P reserves and contingent resources North Sea Asia MEP West Africa Total 2P Reserves On production 19.9 38.9 51.5 1.4 111.6 Approved for 1.5 51.8 0.2 0.0 53.5 development Justified for 2.3 57.8 0.9 1.3 62.3…
Asia Indonesia West Natuna Block A Anoa Reserve upgrade captured in 2008 year end bookings Targeting upside in Anoa Deep in Q3 2009 Gajah Baru Delivering significant cost reductions: EPCI contract for Gajah Baru platforms has been…
Asia Indonesia North Sumatra Block A PSC for North Sumatra Block A being amended Terms to be in line with the (new) standard PSC for Indonesia, signature expected mid-year Revision to agreed GSA for a gas price with an increased…
Asia Vietnam Block 12W Chim So Joint venture and government approvals achieved in late 2008 Construction work on wellhead platform has commenced in Vietnam under an Interim EPCI Agreement Re-engineering to a one platform…
North Sea Norway Fry Fry Field development plan (PDO) was submitted in late 2008 10-year licence extension awarded Work ongoing seeking: Project cost reductions 3rd party volumes PDO is still under review by the Norwegian Oil…
Production and development capex forecasts Production forecast Development capex forecast (kboepd) (m) 70 400 60 350 300 50 250 40 200 30 150 20 100 10 50 0 0 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014…
2009 exploration and appraisal drilling Country Well Licence Prospect Interest Size (Gross mmboe) Pakistan Bado Jabal-1 6% 330 Egypt Geyad-1 X 10% 30 Pakistan Kadanwari K-19 16% 8 Norway Grosbeak North 20%1 100 Vietnam 07/03…
2009 firm well programme Bado Jabal - Badhra - Pakistan Alpha (Huy t Long) Prospect size 330 mmboe Block 07/03 - Vietnam Operated by ENI Prospect size 80 mmbbl Targeting Lower Goru sandstones Planned for April 2009 spud below the…
Exploration outlook Asia Q1 Q2 2009 Q3 Q4 Q1 Q2 2010 Q3 Q4 Vietnam: 07/03 Alpha (Huy t Long) Hakuryu-V Beta Hakuryu-V 104-109/05 Seismic Indonesia: Tuna Gajah Laut Timur Singa Laut Natuna Anoa-Deep N. Sumatra A 1 well Buton 1…
Oilexco transaction overview 25th March 2009 Page 21
Oilexco transaction summary Proposed acquisition of Oilexco North Sea Limited (ONSL), in administration, for 505 million in cash total 2P reserves and contingent resources of approximately 60 mmboe (at end 2008) 2009 production of…
Strategic rationale for the acquisition Balances Premier group with critical mass in two core areas South-East Asia (Indonesia and Vietnam) and North Sea material package of complementary producing, development, appraisal and…
Combined group of 450 mmboe reserves & resources 2P Reserves and Contingent Resources (mmboe) 450 Contingent Resources Additions and Revisions 400 Production Reserves 350 300 250 200 150 100 50 0 Premier Production…
End 2008 pro forma 2P+2C for Premier & Oilexco Premier ONSL Combined Premier Premier Premier Total North Sea North Sea North Sea Asia MEP W Africa 2P On production 19.9 22.2 42.1 38.9 51.5 1.4 133.9 Reserves Approved for 1.5 4.2…
Premiers enlarged North Sea portfolio 2009(a) production by field End 2008 2P reserves by field (kboepd) (mmboe) Total 24.1 Total 63.5 kboepd mmboe Wytch Farm Balmoral Wytch Farm Other fields Shelley Scott & Telford Brenda…
Complementary and balanced asset portfolio Brenda-Balmoral area Core production area & Nexen-Scott Joint Projects redevelopment/ Exploration and appraisal project opportunities Shelley Field development Huntington Field…
Oilexco production forecast / development capex plan Production forecast Intended development capex plan (kboepd) (m) 25 250 Oilexco developments Oilexco developments Oilexco small fields Oilexco producing assets Oilexco…
Targeting 75kboepd pro forma production Production forecast (kboepd) 90 Oilexco developments 80 Oilexco small fields Oilexco producing assets Premier Asian developments 70 Premier existing producing fields 60 50 40 30…
Valuation and financial rationale Compelling valuation 60 mmboe total 2P reserves and contingent resources acquired, priced at less than 8.50/bbl(a) in excess of 1 billion of UK tax losses supported by independent report from RISC…
Transaction conditions and timetable Acquisition of ONSL conditional on Premier shareholder approval at EGM; completion of rights issue; and approval of ONSLs existing unsecured creditors of the Company Voluntary Arrangement (CVA)…
Next steps Deliver integration of Oilexco interim arrangements in place maintain operatorship capability Execute current Premier investment programme in Asian portfolio development projects financed and proceeding forthcoming…
25 th March 2009 Page 33 www.premier-oil.com 25th March 2009
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