August 2019 2019 Half-Year Results 01 October 2018
Highlights 2019 1H highlights Free cash flow generation (m) 1. 400 Significant 300 debt 200 reduction 300 100 182 0 2019 1H 2019F 2. 3. 4. 5. Record 1H Zama Tolmount New licence production successfully on schedule,…
Highlights Delivery against 2019 targets Record 84.1 kboepd; very high Group operating efficiency Production Guidance of 75-80 kboepd reiterated Premiers next growth project progressing under budget DELIVER Tolmount On…
Highlights Strengthened commitment to ESG Climate Change Examples of actions being taken to reduce future emissions Committee established Tolmount will be powered by a gas micro- Climate Change Policy turbine aligned with TCFD…
Finance Financial priorities and highlights Priorities 121m 2019 1H net profit Continued debt reduction, targeting leverage ratio of 1.5x Maintain low cost base and capital discipline 43% of 2019 2H hedged at Fund selected…
Finance 2019 1H Financials Higher Catcher production delivered a step up in operating cash flow and profits 2019 1H 2018 1H Realised pricing Production (kboepd) 84.1 76.2 2019 1H 2018 1H Operating cost/boe 10.3 11.3 Oil (pre hedge)…
Finance Maintaining financial discipline and flexibility Capital discipline Active hedging programme P&D expenditure focused on high return, Supported higher cash margins in 1H quick payback projects Protects debt reduction and…
Finance Cash flow performance Year end 2019 net debt is expected to be c. 2bn, representing: 700 million Accounting leverage ratio of 2x EBITDAX Expected debt Covenant leverage ratio of 2.3x reduction 2018-191 FCF yield of 48%…
Production Top tier operating efficiency UK operating efficiency UKCS operating efficiency trend % UKCS operating efficiency 95 improved for sixth PMO UK OE consecutive year 71 73 74 75 64 65 PMO 3 year average (2016-2018) 80%…
Production Incremental investments generating 650m NPV Approved investments Converting resources Asset Activity Timing into the production Elgin Franklin Infill programme Ongoing base Chim So Well intervention campaign 2019…
Production Delivers a new base profile Investment characteristics Low cost, rapid payback projects (typically less than 1 year) High return on capital (IRR20%) Robust at low oil prices Maintains production at 75-80 kboepd out to…
Development Tolmount on track Gross Gross resource Net Capex Payback Peak Production 500 Bcf 120…
Development Tolmount East drilling ahead Spudded 8 August; results expected Targeting up to October 2019 300 Bcf gross Testing extension to Tolmount structural closure above gas water contact On success, tied back to Tolmount for…
Development Block 7 Zama oil field successfully appraised Sales process underway for Premiers 25% interest in Block 7 Highly-marketable asset Materially strengthens balance sheet Optimal time to monetise Appraisal campaign…
Exploration Disciplined approach to exploration and appraisal 650 mmboe of net prospective unrisked resource to be drilled in the next three years Target under-explored, emerging plays in proven hydrocarbon provinces Alaska…
Exploration Material acreage position in Mexico beyond Block 7 Block 30 (Sureste Basin) (Premier 30%, non op) Block-wide 3D seismic survey completed Wahoo flat spot similar to Zama Drilling activity targeted for end 2020/early 2021…
Exploration Andaman Sea: low cost entry, new regional play Expanded position in the South Andaman Sea Multi-TCF gas play gross potential Low upfront costs No well commitments 3D survey completed; encouraging initial results…
Exploration Alaska: prolific super basin, renewed industry interest Cost effective entry into an emerging play in a proven oil province Alaska North Slope Historical focus has been on the deeper Jurassic/Triassic Ellesmerian Play…
Exploration Area A, Alaska North Slope Malguk-1 discovery (1991) Jurassic/Triassic target 251 feet of conventional light oil pay 1bn bbls STOIIP found in the Torok sandstones in the shallower Brookian Play but not flow tested…
Development Sea Lion the opportunity World scale development Conventional new build FPSO/subsea development Substantially de-risked Best available technology Tier 1 supply chain in place Value engineering complete Vendor…
Summary Key takeaways and 2H outlook Key takeaways Strong positive free cash flow driving debt reduction Much improved credit metrics, in line with peers Multiple opportunities for low cost investment in producing assets Portfolio…
August 2019 www.premier-oil.com Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR T: +44 (0)20 7730 1111 E: premierpremier-oil.com
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