Introduction ...our strategy is to invest in high-quality developments whilst maintaining balance sheet strength... Premier Today Going Forward Robust cash flow and profitability The Board will: 800 mmboe reserves and resources…
Balance Sheet Strength and Flexibility
Robust balance sheet and funding position Current net debt of 1.45 bn Gearing of 41%, well within Board guidelines Significant headroom on financial covenants today and going forward Cash flow cover at 2x (covenant…
Significant cash flow growth Financial Outlook Cash Flows (Current Oil Prices) 2014 guidance 58-63 kboepd Positive start to 2014 production Changing mix generates higher cash flows Solan, Catcher fields Add up to 30,000 bopd of…
Portfolio optionality Prudent Financial Management Significant Flexibility Planning case 85/bbl Current oil price 105/bbl Active disposal programme Active disposal programme continues Will seek partner for Sea Lion Will seek partner…
Catcher Development
Catcher development overview Project Sanction Pre-tax IRR 20% based on 85/bbl Gross reserves (2P) of 92 mmboe within initial development Upside of 140 mmboe Excellent reservoir qualities 35% porosity and very high permeabilities…
New North Sea hub Location: Block 28/9 Water depth: 300 feet 3 fields as part of initial development 22 wells to be drilled Catcher area discoveries: Catcher August 2010 Varadero January 2011 Burgman March 2011 Carnaby June 2012…
Exploration and appraisal success All exploration and appraisal wells encountered hydrocarbon bearing sands: Varadero Tay sands in 28/9-1Z, -3, -2, -4, -4Z, -5A, -6 and -6Z (all fields) Catcher Cromarty sands in 28/9-1, Burgman…
Good understanding of the rocks Region of deposition of original Cromarty and Tay sands Joseph C. DeVay et al, 2000, AAPG Memoir 72 / SEPM Special Publication No. 68 Late Palaeocene/early Eocene turbidite sand systems Tay…
Seismic will assist with well placement Catcher Cromarty Catcher East (Tay) GOC Balder OWC Catcher Catcher East (Tay) Cromarty Chalk Polarcus HD seismic (far stack coloured inversion) Excellent quality seismic…
Catcher development overview 6th February 2014 // Page 13
Catcher area development scheme
Reservoir depletion optimised Oil pore volume thickness map 22 well development including 14 producers and 8 injectors Wells target thickest oil sands to maximise rate and recovery VP3 VI3 Wells positioned to allow CTP7 effective…
Rig and well systems contracts awarded Wells drilled over six - 4 slot templates from a Heavy Duty Jack-Up Subsea well system with HP riser Subsea trees run from Jack-Up (similar to Huntington development) Ability to workover wells…
FPSO build Concluded a highly competitive tender process 3 international companies Re-fit versus new build Formal announcement of preferred bidder imminent 750,000 bbls oil storage Designed for Functional Spec 125,000 bpd…
Production profile 6th February 2014 // Page 18
Upside near field discoveries and exploration Exploration (Laverda) Laverda 25 mmbbls STOIIP Low cost tie-back to Catcher development Catcher North (CTP2 well) 2-4 mmbbls reserves Catcher Possible subsea tie-back or North (CTP2)…
Cost parameters 6th February 2014 // Page 20
Catcher tax attributes Bare-boat Charter Industry-wide discussions are ongoing with HMT regarding the possible introduction of taxation on bare-boat charter income Small Field Allowances The Small Field Allowance shelters 150 m…
Major milestones Premiers Board has approved the project Formal Sanction on completion of the contracts and receipt of JV and Government approvals The FDP will be submitted to DECC next week Environmental Statement already…
Falklands Projects
Falkland Islands Location Situated on the southern part of the South American Plate on the Falkland Plateau Mid Nazca Plate 220km from the Falkland Islands in Atlantic Ridge the North Falkland Basin Water depth 450m Premier Oil…
Premiers Falkland Islands portfolio Licence PL032 Premier 60%, operator; Rockhopper 40% Contains Sea Lion discovery made in 2010, extensively appraised in 2011 Chatham exploration prospect PL032 Licence PL004 PL004b Premier 36%,…
Sea Lion structural and depositional setting PL032 SL30 SL20 SL10 Casper Casper South Beverley Zebedee Jayne E Syncline Axis PL004b PL004c Stratigraphically trapped in overlapping deep water lacustrine fans - younger…
Key appraisal wells 6th February 2014 // Page 27
Dataset and key reservoir and fluid parameters Extensive appraisal dataset Discovered by well 14/10-2 and appraised by 8 wells (plus 2 sidetracks to core) 3D data full stack reflectivity seismic (2007 and 2010, merged in 2011/12) Well…
Sea Lion Phase 1 development TLP Offtake Floating Storage Tension Leg Tanker & Offloading Platform Concept Selection Highlights Permanent Drilling Rig Minimal Subsea Infrastructure Phased Development Improved Economics Gas…
Phase 1 reservoir development plan Active waterflood with multiple pore volumes of water injection over field life (5 bbl per bbl of oil recoverable) 32 development wells 19 producers and 11 water injectors 2 subsea gas injection…
TLP oil producer well design Water Injection Wells Inclined trajectories Cased and perforated Conventional Gas Lift Hydraulically fractured Heated water Downhole Wax Inhibitor Electrical Tubing Heating Horizontal up to 1500 m…
TLP analogues Sea Lion Olympus Development Name (Pre-FEED) (MARS B) Operator Premier Shell Region S. Atlantic GoM WD (ft) 1,372 3,000 Oil (mbpd) 120 100 Gas (mmscfd) 165 180 Manning Level 175-200 192 Slots 32-36 24 Date…
Project organisation 6th February 2014 // Page 33
TLP build Living Quarters Topsides Fabrication and Integration U.S. Korea Utility Module Singapore Dubai Drilling Module Process Module Hull Fabrication Korea China Hull Flare Boom Singapore Japan Survival Craft…
TLP transportation 6th February 2014 // Page 35
Operations and logistics Exploration drilling support model Drilling base in Stanley from which supply boats and helicopters support the rig Regular freighter supplies from the UK to the drilling base Fortnightly charter flight from…
Design phase milestones 18 month Design phase Concept Selection to the start of execution (award of the EPC contract(s)) Award of FEED Contracts in Q2 2014 Shortlisting of EPC bidders in Q4 2014 Updated cost estimates available Q4…
Phase 1 development costs Indicative costs subject to FEED Surface Facilities Capex 3.5 bn TLP 2.4 bn Subsea and risers 0.45 bn Project management and other costs 0.65 bn Drilling Capex 1.7 bn Total Phase 1 Capex 5.2 bn Spend to…
Economics and financing Economics Discount of 6.50 to Brent is assumed to account for oil quality and transportation Sea Lion Phase 1 yields an IRR of around 20% at an oil price of 85/bbl (real) Project Funding Strategy Corporate…
Phase 2 development Phase 2 Development of Casper, Casper South Plus the southern extent of Sea Lion Single manifold subsea tie-back to the TLP More detailed development studies underway Development plan will incorporate…
Further Sea Lion scale opportunities Lower F2 amplitude extraction F3G amplitude extraction High quality dataset Size of exploration prize: Sea Lion 1,000 mmbbls prospective fan outline resources 250 mmbbls risked Four E&A wells to…
Zebedee high impact near field 3D visualisation of Casper South and Zebedee sands Zebedee prospect Onlaps the Sea Lion field Fan input Onlapped by the Casper South discovery Extends the proven SLMC (F2 sequence) play Gross…
Jayne East high impact near field Amplitude extraction F2 lower fan Equity increased to 36%, partner equity interests now aligned and fully funded Jayne East Well to test five potential reservoirs levels across the F2 and F3…
Isobel/Elaine another Sea Lion Single stratigraphic layer within Elaine/Isobel complex Equity increased to 36%, partner equity interests now aligned and fully funded Isobel Deep Stacked targets exclusively within F3 sequence Gross…
Key Messages
Key messages Balance sheet strength, financial flexibility supported by asset disposals Catcher: high quality project, attractive returns Sea Lion: high quality project, will seek partner before sanction ...our strategy is to…
Q&A
Appendix
Subsea In-field manifolds (3-off) Common design for each manifold structure 9-slot assemblies (6x production + 3x water injection) Slab sided structures with piled foundations (estimated 230 tonnes) Fishing friendly Incorporates…
Subsea riser base structures (3-off) Similar design for each riser base tie-in structure Open sided (estimated weight 100 tonnes) Dropped object protection only (i.e. all structures are located within FPSOs 500m safety zone so not…
Subsea bundle option Three similar bundle systems planned for tie-back of the developments Each bundle circa 3.5km in length, comprising a 38 outer carrier pipe designed to house the 12 production, 10 water injection and 4 gas lift…
Subsea gas export structure Slope sided to resist trawl gear snagging loads and promote over trawl-ability Approximate weight of 110 tonnes Supports connection of a temporary subsea pig receiver c/w DB&B isolation Supports entry of a…
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