December 2019 Investor Presentation 01 October 2018
Highlights Delivery against 2019 targets 79.4 kboepd to end of October; 94% operating efficiency Production Forecast FY production at upper end of 75-80 kboepd guidance Premiers next growth project progressing under budget…
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…
Production Top tier operating efficiency UK operating efficiency UKCS operating efficiency trend % UKCS operating efficiency 92 improved for sixth PMO UK OE consecutive year 71 73 74 75 65 PMO 3 year average (2016-2018) 80% 60…
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 Plateau Gross resource Net Capex Payback production gross 500 Bcf 120…
Development Material upside beyond Tolmount Targeted 220 Bcf (P50) gross resource Well results currently under evaluation Reservoir quality & thickness at upper end of expectations 71% NTG, 16% porosity, 82% gas saturation…
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 Bid deadline extended to December to accommodate…
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…
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 early 2021…
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…
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 Brazil Secured acreage in Ceara basin via Brazils 11th Round High impact prospects in stacked targets Block 717 (Premier, 50% operator) matured for drilling Berimbau/Maraca (Block 717) Itarema/Tatajuba (Block 661)…
Finance Financial priorities and 1H 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 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%…
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…
Appendix 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…
December 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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