2006 Preliminary Results Presentation 22nd March 2007
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 Results Highlights Simon Lockett Financial Results Tony Durrant Regional Update Robin Allan & Neil Hawkings Look Ahead Simon Lockett Page 3 22nd March 2007
Results Highlights Page 4 22nd March 2007
Highlights Operated drilling Dua and Blackbird in Vietnam; Lembu successes in Peteng, Macan Tutul and Lukah in Indonesia & Vietnam Indonesia Current drilling in India & Guinea Bissau 3 acquisitions adding 270 bcf net certified gas…
Financial highlights Profit after tax Up 75% to 67.6 million (2005 - 38.6 million) Operating cashflow Up 102% to 244.8 million (2005 - 121.2 million) Operating costs Stable at 6.0 per barrel (2005 - 5.9 per barrel)…
Production and income statement 12 months to 12 months to 31 Dec 2006 31 Dec 2005 Highlights Working Interest Production (mboepd) 33.0 33.3 Close to Brent average of 65.40/bbl Entitlement Interest Production (mboepd) 28.9 28.7 Strong…
Cashflow 12 months to 12 months to 31 Dec 2006 31 Dec 2005 Estimated regional split m m Operating Cashflow Capex Net cash flow from operations 361 208 North Sea 91 43 Net interest - - Asia 87 60 Taxation (116) (87) Pakistan 45…
Financial outlook Production expected to be 36,000-40,000 boepd for 2007 Exploration spend will increase in 2007 Current estimate around 100m After-tax cost will be around 70m Exploration cash expenditure before and after tax US…
North Sea returning to growth North Sea Strategy Deliver material reserve additions through organic growth in Norway Maximise returns from current UK production assets with a focus on incremental projects Pursue acquisitions of…
Scott acquisition Pre-emption notice issued on Hess sale of part of Scott interest Premier share to increase from 1.79% to 21.83% Additional 12.7 mmboe net to Premier for 60m Increased 2007 production of 5,000 boepd Page 11 22nd…
Fry Premier 50% share (operator Pertra) Brent equivalent field abandoned by Total in 2001, awarded to Premier in 2005 Operators reserves estimate is 62 mmbbl (35 to 70 mmbbls) Two development concepts being carried forward…
Bream Most sought after blocks in the APA 2006 round Undeveloped Brent equivalent oil field discovered in 1971, awarded to Premier in 2007 PL407 Bream Appraisal Awarded 40% and Operatorship of Bream Exploration 1 Firm well PL406…
North Sea exploration update 2006 APA Round Awards Five blocks awarded First Operatorship for Premier Norway Bream discovery to be appraised UKCS 24th Round Awards 1524a & 15/25f 2005 APA Round Awards 4 non-operated exploration…
North Sea exploration update PL359 Merckx lead Paleocene sandstones lap onto the edge of the Utsira High. Oil shows in down-dip 16/4-1 well Paleocene sandstone pinchout Risk analysis is being undertaken before deciding whether to…
UK exploration - Peveril Fife Field Fergus Field Sealing Fault-locally Outline of developed sands not Peveril charged on eastern side Peveril Prospect Prospect Blocks 39/2, 39/7 4 Way Dip closure at Base Cretaceous…
Middle East & Pakistan Enhancing the Pakistan gas business Middle East & Pakistan Strategy Grow high return Pakistan business through development and acquisition Replenish Pakistan exploration portfolio, focusing on High Impact…
Pakistan - Qadirpur Deep Qadirpur Discovered gas in a Lower Cretaceous structure at 4500m, with potential stratigraphic upside. The well has been suspended for testing later in 2007 Page 18 22nd March 2007
Pakistan field updates Qadirpur (4.75%) Further plant expansion proceeding Qadirpur Deep drilled awaiting testing Zamzama (9.37%) Phase 2 project progressing to plan Additional 150 mmscfd - first gas in 2H 2007 Potential Upside…
Pakistan Anne-1 Targeting 300 mmbbl in W Anne-1 E Oligocene-Miocene sandstones Deep water: 1300m Drilling June/July 2007 Page 20 22nd March 2007
West Africa high impact exploration West Africa Strategy High Impact Exploration-led growth Maximise value from existing discoveries Generate a portfolio of new exploration opportunities Gross Unrisked Mean Prospect Country…
Mauritania update New well (Chinguetti-18) is now flowing Chinguetti-14 has been worked over Plans progressing for Phase 2B production wells in Q4 this year Tiof continues to make progress High resolution seismic acquisition in…
Guinea Bissau Esperanca (Block 4A and 5A) 30.5% Targeting cretaceous sandstones Espinafre-1 currently drilling (70 MMBO) Eirozes-1 to follow:190 MMBO mean, 360 MMBO upside Block farmed-out to Delek Feb 07 (subject to Government…
Guinea Bissau high impact wells Eirozes Prospect: Espinafre Prospect: mean reserves 190 million barrels mean reserves 70 million barrels Salt Salt Top Top Albian Albian Sand Sand North South North South Page 24 22nd…
Congo Block Marine IX Frida Prospect Frida Miocene Channel Kitina 150 mmbbls Ida Prospect Marine IX Block (Premier 58.5%) Significant reserve potential NKossa 280 mmbbls 3D reprocessing and interpretation in 2007 Moho…
Congo Block Marine IX Frida prospect Frida Prospect 150 mmbo Kitina Field (Total) Page 26 22nd March 2007
Congo Block Marine IX Frida and Ida prospects Frida Structure Ida Structure Page 27 22nd March 2007
Asia Building on our Natuna Sea position Asia Strategy Fully exploit the West Natuna potential Build a new core area in North Sumatra Develop the Nam Con Son Basin Access further high impact exploration Build on selected E&P…
Asia success Vietnam Block 12 37.5% - Dua Kakap 18.75% - Lukah discovery and Blackbird discoveries Vietnam Block 7&8/97 option exercised for 45% interest Tuna licence award - 65% North Sumatra Natuna Sea Block A acquisition…
India Ratna All partners are now in agreement and ready to sign the PSC and the associated documentation Being progressed through the ministries concerned Premiers reserves estimate is around 80 mmstb but further upside exists…
India Cachar Block Hailakandi Prospect Masimpur Prospect Kanchanpur Prospect Cachar, 14.5% (Operator) Masimpur-3 (2 Tcf), spudded 21 Jan 2007 Hailakandi-1 & Kanchanpur-1 follow-up wells, each with high potential Page 31…
Masimpur-3 drilling curve Masimpur Anticline Seismic line POC-03-12 The Masimpur structure has defeated previous attempts to drill the Renji formation target The rig is located off the crest, and the well is being drilled…
North Sumatra Block A Acquired 41.67% in two acquisitions from ExxonMobil and ConocoPhillips at a cost of 53m Medco have now assumed Operatorship Initial focus will be the development of the Alur Siwah gas field Followed by…
Alur Siwah Development Initial gas development of three fields to an already built local fertiliser plant. D& M 2P certified gas reserves Alur Siwah 556 bcf Alur Rambong 76 bcf Julu Rayeu 34 bcf Outline Development 120 mmscf/d…
North Sumatra Block A long term vision Gas from Alur Siwah to be sold to fertiliser plants The Bata Raya Field could be developed either into the Arun LNG Plant or the Fertiliser plant Further gas to be discovered through…
West Natuna Block A Gas Sales Update Gas sales planned under two contracts Singapore petrochemical complex ExxonMobil and other end users HSFO indexed price Domestic power generation Sale to PLN for Batam Domestic pricing First…
West Natuna long term vision Page 37 22nd March 2007
West Natuna drilling programme 2007 Contingent Wells Firm Wells Tupai Lembu Peteng-2 (Appraisal) 2 development wells Ibu Lembu Kakak Lembu Pancing Tenggiling Gajah Sumatera Page 38 22nd March 2007
West Natuna Lembu trend Lembu Ibu Peteng-1 Lembu-1 Lembu Peteng discovery Lembu Trend A new oil and gas trend within tie- back distance to existing infrastructure Page 39 22nd March 2007
West Natuna - Gajah Sumatera Prospect Gajah Sumatera-1 Gajah plus ST Puteri-2 Gajah Puteri-1 Gajah Sumatera Gajah Sumatera Potential extension to the Gajah Puteri Field Page 40 22nd March 2007
Indonesia licence award Buton (Sulawesi) Buton Block Buton 30% Awarded 28 February 2007 Operator Japex 2007 WP: Environmental Impact Assessment Geological Field Survey 265km 2D seismic (late 07) Exploration well 2009 Page 41…
Buton: Lead C Satellite Interpretation U D Oil seeps Tp-Q Tp-Q Large anticlines are Sampolakosa-1S seen at surface; there are likely to be structural traps Lead C Anticline at depth Page 42 22nd March 2007
Natuna Sea Tuna Block Seismic Line showing Direct Hydrocarbon Indicators Tuna 65%, Operator Awarded 2 March 2007 (3 yrs) Adjacent to Vietnam Block 7 & 8/97 On trend with Dua and Blackbird discoveries Potential 40-100 MMBO…
Vietnam Block 12 discoveries and prospects Quit Big structure Dua Field Successfully appraised Jay Near field exploration to Dua Blackbird Successful exploration, 3D April 2007 Falcon Follow-up to Blackbird…
Vietnam Block 12 - Discoveries and Prospects Peacock Quit Dua Falcon Blackbird 10 km Base Tertiary Depth Map Page 45 22nd March 2007
Dua / Blackbird update Reservoir and Facilities Development studies are underway 3D seismic on Blackbird in 2Q 2007 to reduce volumetric uncertainty Concept selection scheduled for Q3 - Project sanction in Q2 2008 Likely to be an…
Block 12 Falcon prospect Falcon Top Middle Dua Sands Depth Structure A A Falcon Prospect max closing Contour 2990mSS Falcon A A Top Thong Falcon Prospect Falcon Top Intra Middle Dua Top MD1 2007: 3D seismic programme…
Vietnam Block 12 Peacock prospect Peacock Prospect Top Middle Dua Sands Depth Map Peacock Prospect Peacock Peacock Prospect Peacock Prospect 2007: 3D seismic programme Exploration well in 2008 Page 48 22nd March 2007
Vietnam Blocks 7 & 8/97 Block 7 & 8/97 Premier 45% Force Majeure lifted in November 2006 Adjacent to Block 12 (success in 2006) and newly awarded Tuna Block in Indonesia Numerous prospects and leads identified on seismic…
Vietnam Blocks 7 & 8/97 Blue Marlin Prospect W E Page 50 22nd March 2007
Block 7 & 8/97 Red Grouper Prospect Red Grouper Prospect Page 51 22nd March 2007
Vietnam Block 12 long term vision Repeat the successful model from West Natuna Block A Start with an FPSO based oil development Follow up with gas offtake through a shared pipeline to power generation Continue to integrate…
Corporate strategy Corporate Strategy Deliver value through a growth focused independent upstream E&P business Production growth through development projects Focused high impact exploration Pursuit of acquisitions which are…
Reserve additions Reserves/Resources (mmboe) 350 Resources movement Booked reserves movement 302 West Natuna 300 289 North Sumatra Resources Booked reserves Block A 250 232 Blackbird/Dua Fry 200 Pakistan 150 164 165 152 100…
Development schedule 2007 2008 2009 2010 WNBA GSA-2 Ratna Blackbird / Dua NSBAAlur Siwah Fry Pakistan Study Design Execute Operated Non-operated Project Concept Project First Initiation Selection Sanction…
5 Year production Production Profile Production Profile by Region (boepd) (boepd) 80000 80000 West Africa New projects Asia 70000 70000 Booked reserves M/East & Pakistan North Sea 60000 60000 50000 50000 40000 40000 30000 30000…
Development capex Future Field Capex Future Field Capex by Region ( million) ( million) 300 New projects 300 West Africa Booked reserves Asia M. East & Pakistan 250 250 North Sea 200 200 150 150 100 100 50 50 0 0…
Exploration the next 12 months 2007 2008 North Sea MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB UK : 39/7 Peveril M/East & Pakistan Egypt : NW Gemsa Gemsa Well Pakistan : Indus Anne-1 West Africa Guinea Bissau : Esperanca…
12 months ahead Progress development sanctions High impact exploration in Guinea Bissau, India, UK, Pakistan Focus exploration efforts on 2008/9; Vietnam, Congo and follow-ups Complementary acquisitions to existing…
60 22nd March 2007 www.premier-oil.com Page 22nd March 2007
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