2017 performance Production 5% 75 kboepd Opex 4% 16.4/boe Capex 58% 275m Reserves and resources 8% 902 mmboe Operating cash flow 15% 496m Net debt 2% 2,724m March 2018 P3
The asset portfolio Largest 5 fields accounted for c. 70% of production in 2017 March 2018 P4
Strategic framework, NAV focused Debt Priority in 2018/2019 reduction Targeting 2.5x EBITDAX by end Q1 2019 Core operations in UKCS and Natuna Sea Producing assets Maintain cost base…
Balanced capital allocation, returns driven 7 year capital allocation 2018-2024 Net operating Debt cash flow reduction 100% 30% Producing assets 20% New projects 40% Exploration 10% A sustainable position At 65/bbl…
Portfolio overview
Asia production portfolio Chim So (op, 53.125%) Natuna Sea Block A (op, 28.67%) Producing 30 kboepd Active well intervention programme GSA1 market share increasing Ongoing reservoir optimisation Improving gas price Infill…
UK production portfolio Reserves Huntington (op, 100%) Elgin-Franklin (5.2%) One of the upgrade UKs largest FPSO lease producing fields extended Long field life Cost reductions (COP 2035+) secured Active well Current intervention…
Catcher the journey to first oil What we achieved in 2017 FPSO hull and topsides completed and integrated Sailaway of FPSO from Keppel yard HSE Acceptance of Safety Case Drilling and completion of 6 wells Successful tie-in of…
2017 successful full cycle delivery of Catcher Experienced project management team in delivery of FPSO projects On schedule World class contractors Forecast total capex 30% below budget Early operations involvement in project…
Catcher Area commissioning status Oil Booster Gas Gas lift Dec Jan Feb Mar Apr 60 kbopd treatment gas treatment 2018 and export 2017 2018 2018 2018 production plant compression plant compression Operations Good uptime; oil…
Catcher Area upside Catcher North: Laverda: Potential for reserves upside Tie-back via Varadero Joint development with Laverda Conservative initial recovery factor assumed Positive production test results Well-connected sands…
Tolmount high value project Adds significant resource 540 bcf Indicative production profile boe equivalent (100 mmboe) (kboepd) 60 Provides next phase of UK 50 growth 50 kboepd peak production 40 30 Low capex requirement…
Tolmount Main project update 2017 highlights Key terms agreed for funding of Tolmount facilities Draft Field Development Plan submitted to OGA Project FEED nearing completion Final negotiations with platform, pipeline and drilling…
Tolmount Area Development Tolmount East Subsea well tie-back Sanction Tolmount Main 2018 New 3D seismic over 220 Bcf Greater Tolmount Area Extends Tolmount Main plateau SW 42/28d-12 NE Construction of platform, pipeline, onshore…
Sea Lion substantial progress 1 World scale resource 2 Proven development concept 160 1 bn bbls in new Annual average oil rate 140 Phase 2 Technically straightforward FPSO province Phase 1 120 development (similar to Catcher)…
Sea Lion 2018 targets Select preferred contractors and secure vendor financing LOIs signed for c. 1.5 bn of total Owners Costs contracts value Drilling rig Well services 400m Pre-first Subsea equipment Oil capex of vendor…
Refocused exploration portfolio Repositioned towards emerging plays in Prospect Y proven hydrocarbon provinces Early success in Mexico at Zama; Prospect Z looking to increase acreage footprint Managed position in Brazil to focus on…
Mexico 2015: Awarded Blocks 2 and 7 in Mexico Round 1 Potential appraisal 2016: Increased interest in Block 7 to 25% locations 2017: Zama-1 discovery made on Block 7 400-800 mmbbls1 (P90-P10) API 30 2018/2019: Zama appraisal…
Indicative full field Zama development Indicative development metrics P50 resource 600 mmbbls Capex +/- 1.8bn (operator estimates) Peak production 100-150 kboepd First oil 2022/23 Appraisal and 2020 2022/3 2018 2019 FEED…
Tuna, Indonesia (65%, operator) Highlights Discovered in 2014; 90 mmboe Evaluation of potential development scenarios ongoing Government agreement signed with Vietnam and Indonesian governments re: connection to existing…
Ceara Basin, Brazil High impact prospects in stacked targets matured for drilling 2 well Berimbau/Maraca (Block 717) programme 661 Itarema/Tatajuba (Block 661) targeting 2 Bn bbls Drilling operations planned for late STOIIP…
Appendix
Financial highlights and outlook 2018 P&D capex 2017 highlights (m) 120 Comprehensive refinancing completed Positive free cash flow of 71m 80 Operating costs of 16.4/boe P&D and exploration capex 58% lower at 40 275m 300m…
2017 Financials 12 months to 12 months to Realised prices 2017 2016 31 Dec 2017 31 Dec 2016 Oil (post hedge) Production (kboepd) 75.0 71.4 52.1 52.2 (/bbl) Opex per Barrel (/boe) 16.4 15.8 UK gas (p/therm) 47.2 47.6 Indonesia gas…
Portfolio management Seek opportunities with strategic fit within existing geographic units Focus on operated long-life assets Material working interest Critical mass locally UK tax optimisation Covenant accretive Dispose of…
Capital expenditure and abandonment P&D capex and exploration spend 2017 P&D capex and exploration (m) 300 2017: 275m, 60% lower than 2016 126m Catcher drilling and subsea 17m Chim So infill wells 200 38m exploration, includes Zama…
Hedging Hedging policy 30-50% of future oil and gas volumes on a rolling 12-18 month basis Minimum required under lender agreement is 20% Liquids hedging Progressively increased as oil price rose 50% of 2018 oil production hedged…
Net debt Estimated leverage ratios using accounting net debt as at year-end 20181 6x 5x 4x Investment 3x grade equivalent 2x 1x - YE17 YE18 Premier European peers US Peers Net debt of 2.72bn, reduced from year-end 2016…
March 2018 www.premier-oil.com Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR Tel: +44 (0)20 7730 1111 Fax: +44 (0)20 7730 4696 Email: premierpremier-oil.com
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