2020 2019 Annual Results Presentation 01 October 2018
Contents Agenda 1. 2019 Performance .... Tony Durrant 2. Financial results and acquisition status ... Richard Rose 3. Operational performance .... Stuart Wheaton 4. Emissions policy and development update . Robin Allan 5.…
Highlights 2019 Performance Production outperformance Production of 78.4 kboepd High operating efficiency of 93% Excellent HSE performance No recordable injuries at Premier sites Historic low GHG intensity Continued tight cost…
Finance Financial highlights and priorities 2019 Highlights Net debt m Increased profitability to 164m Continued cost control and disciplined capital allocation Net debt reduced to less than 2bn 2500 Leverage materially reduced…
Finance 2019 Financials Increased UK production and tight cost control resulted in higher cash margins FY 2019 FY 2018 Realised pricing Production (kboepd) 78.4 80.5 2019 2018 Operating cost/boe 11 10 Oil (pre hedge) (/bbl) 66.3…
Finance Disciplined spend, strong cost control Capex expenditure (P&D, E&A) Capital expenditure1 m 2020 capex weighted towards P&D Abex P&D E&A High return, quick pay back 90 400 Tolmount drilling 46 Right sizing future spend…
Finance Hedging programme 2020 leverage to commodity prices (post hedging) Oil hedging 5/bbl change in oil price results in a c.60m FCF 2020 1H 2020 2H move % of production 40% 14 Average price (/bbl) 64 63 5p/therm change in UK…
Finance UK acquisitions materially improve financial position Additional free cash flow increases Anticipated timetable to completion debt reduction 7 Jan Announcement of Acquisitions and Accelerates use of 4.2bn of tax losses…
Production Production assets overview 2019 operational performance UK Outlook Record Group operating efficiency Rising production profile Record UK production Increased contribution from 15 mmboe of 2P reserves addition SE tax…
Production Catcher outperforming, Premier 50% operated 2019 performance Outlook Very high operating efficiency Maintain high operating efficiency Improved base profile Acquisition of 4D seismic 10 mmboe (gross) reserves upgrade…
Production Other UK production Elgin Franklin (5.2 per cent, non-operated) Huntington production kboepd 2019: 6.0 kboepd (net) Low opex 12 E.ON's base sales case Actual Infill drilling, well interventions 8 Long field life 4…
Production UK assets to be acquired Rising UK pro forma production to c. 90 kboepd Andrew Area (50-100 per cent, operated) Shearwater (27.5 per cent, non-operated) 2019: 18 kboepd1 (net) 20191: 5 kboepd1 (net) Low opex of 17/boe1…
Production South East Asia Cash generative: 120 million of free cash flow generated from SE Asian assets in 2019 NSBA, Indonesia (28.7% op) NSBA production kboepd (net) 2019: 11.5 kboepd (net) 15 Low opex of 8/boe BIG-P first…
Development Development asset review a Net Zero Commitment Low Carbon by Design Measuring, managing and minimising Premiers emissions Emissions Hopper approach Best Available Technology Carbon Neutral by Commitment Nature-based…
Development Tolmount Low Carbon by design On track for first gas by year-end Platform sailaway in April Offshore platform installation in May Development drilling to start in June 20 gas export pipelay during summer Acquisition…
Development Operated development asset review Low Carbon by Design Carbon Neutral by Commitment Tolmount East Area Andrew Lwr. Cretaceous Sea Lion Phase 1 Tuna Discoveries 160-300 BCF gross Under test since 2018 250 mmbbls gross…
Exploration High value exploration portfolio Targeting under explored plays in proven hydrocarbon basins 2019 E&A highlights Successful Zama appraisal campaign (Mexico) Alaska United Kingdom Resource increased Unitisation and…
Exploration Alaska North Slope: new country entry Renewed industry interest in under-explored conventional Major ANS Licence holders Brookian play following technological advances Farmed in for a 60% interest in Area A with option…
Exploration Alaska North Slope: Area A Charlie-1 (Malguk-1 appraisal) Premier 60 per cent interest Spudded 2 March Two flow tests planned to test the deliverability of the Torok sandstones Targeting 200 bopd on test Secondary…
Exploration Brazil: Block CM-E-717 Premier operated, 50 per cent interest Well to spud in Q3 2020 600m water depth Berimbau 2 intervals to be intersected Berimbau: 230-450 mmbbls (Pmean to P10) Maraca gross resource Maraca:…
Exploration Mexico: Sureste Block 30 and Burgos Blocks 11 & 13 Wahoo prospect Block 30, Sureste Basin 300 mmbbls Premier 30 per cent non-op On block gross resource potential Water depth of 40-200m Block-wide 3D seismic survey…
Exploration Andaman Sea: play opening programme Expanded position in South Andaman Sea gas play Multi-TCF 3D survey completed; highly encouraging initial results gross potential Timpan (Andaman II, Premier 40 per cent op), planned…
Summary 2020 Outlook Generate free cash flow, driving further debt reduction Production of 70-75 kboepd pre-acquisitions Maintain tight cost control Deliver Zama sale Progress high value projects Add up to 15 kboepd through infill…
Summary Forward production profile Rising, highly cash generative production base Near to medium term growth from UK assets; South East Asia stable Longer term growth from new international projects Indicative production profile…
Summary 7 year balanced capital allocation (2020 to 2026) Reinvestment in new projects will be measured against shareholder returns Non-discretionary Discretionary 100% 25% 10% 10% 10% 45% 2018-2019 allocation At…
March 2020 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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