2018 year to date highlights and outlook Production Cost Base Disposals Catcher 2018 YTD 2018 YTD 2018 YTD 2018 YTD Q1 production of Q1 opex of 18.8/boe Kakap sale Levels of 60 kbopd 74 kboepd; current (constrained Catcher completed;…
The asset portfolio Largest 5 fields accounted for c. 70% of production in 2017 May 2018 P3
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 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 Net production 17 kboepd currently Improving gas price…
UK production portfolio Reserves Huntington (op, 100%) Elgin-Franklin (5.2%) One of the upgrade UKs largest FPSO lease producing fields extended and Long field life rate reduced (COP 2035+) Looking at well Active well optimisation…
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 May 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: 16 of 18 wells now completed Laverda: Joint development Tie-back via Varadero with Laverda Latest Catcher well (CCP8) higher net pay than prognosed Potential for reserves upside Conservative…
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 Final documentation with selected contractors for platform construction, pipeline and…
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 Technically straightforward FPSO Annual average oil rate Phase 2 140 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 1.1 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: Awarded 3 blocks in…
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…
Wahoo, Block 30, a Zama Analogue Zama Block 7 seismic at time of licensing (2015) Wahoo Block Block 30 seismic at time of licensing (2018) Wahoo flat spot 1. Identical trapping geometry 2. Down dip amplitude shut off 3.…
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…
Financials
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% 60% of 2018 oil Liquids hedging production Progressively increased as oil price rose exposed…
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…
2018 FCF profile, capex and abandonment 2018 P&D capex (m) Stable operating cost base at 17-18/boe P&D, exploration & abex spend of 380m 120 Continuing to defer COP dates across portfolio 80 UK tax history shelters UK abandonment…
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…
May 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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