premier o il
TRANSCRIPT
2011 Annual Results Presentation 22 March 2012
22nd March 2012 | Page 1
Forward looking statements
This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties.
A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by
these forward-looking statements.
22nd March 2012 | Page 2
Agenda
Premier today
2011 financial results
Operations update
Exploration update
Summary
Simon Lockett
Tony Durrant
Neil Hawkings
Andrew Lodge
Simon Lockett
22nd March 2012 | Page 3
Over the last 6 years …
40%
338%
72%
80%
Over the period, NAV/share CAGR of 14.2%excluding oil price effects
22nd March 2012 | Page 4
Premier today...
Acquire LicenceGate
Drill DecisionGate
AppraisalApproval Gate
ProjectExtension
Gate
MEA
PN
orth
Sea
Asi
a
Pre-Development
AppraiseDrillEvaluateLEADS PROSPECTS MATURE PROSPECTS
... is in the strongest position in its history
• Clear path to 100,000 boepd from existing projects
• >1.5 billion of prospective resources in the exploration portfolio
• Fully funded programme with strong and rising cash flows
• Proven capability to deliver across the portfolio
22nd March 2012 | Page 5
2011 highlights...
• Increased production to 60,000 boepd at year end– Chim Sáo and Gajah Baru onstream– Next generation of development projects progressing
• Increased reserves and resources to 527 mmboe– Exploration success at ~$5/bbl post-tax– Acquisitions at ~$8/bbl
• Increased financial strength – Cash and undrawn facilities of ~$1.4 billion– Strongly rising cash flows– Record profitability– Continued access to bond and bank markets at favourable rates
22nd March 2012 | Page 6
2011 financial results
22nd March 2012 | Page 7
Record profitability
12 months to31 Dec 2010
Operating costs ($/bbl)2011 2010
UK $39.5 $28.7Indonesia $11.1 $8.5Pakistan $2.4 $2.0Vietnam $16.6 –Group $15.9 $13.9
Highlights12 months to31 Dec 2011
Working Interest production (kboepd)Entitlement production (kboepd)Realised oil price ($/bbl) – pre hedgeRealised gas price ($/mcf) – pre hedge
Sales and other operating revenuesCost of salesGross profitExploration/New BusinessGeneral and administration costsOperating profit Financial itemsProfit before taxationTaxation creditProfit after tax
42.838.379.76.3
$m764
(531)233(87)(18)128(27)10129
130
40.437.7
111.98.5
$m827
(415)412
(211)(25)176(34)14229
171
• Net impact on 2011 of $23 million post-tax
• 25% of 2012 production hedged at average of $100/bbl
• Minimal hedging beyond 2012
• All b/fwd losses recognised as deferred tax asset
• $1.36 billion allowances carried forward into 2012
• No UK CT cash taxes until 2018 under existing model using $75/bbl
Hedging
Taxation
22nd March 2012 | Page 8
Rising cash flows
Cash flow from operations
Taxation
Operating cash flow
Capital expenditure
(Acquisitions)/disposals, net
Finance and other charges, net
Pre-licence expenditure
Net cash flow
12 months to31 Dec 2010
$m 2011
Development
Exploration
Estimated capex split ($m)
433
228
661
Regional split ($m)
505
(69)
436
(514)
13
(70)
(19)
(154)
12 months to31 Dec 2011
$m 2010
349
165
514
530
(44)
486
(661)
(90)
(50)
(23)
(338) North Sea$302m
Asia$301m
Total$661m
MEAP$58m
Outlook• Operating cash flow increased by 11%; significant growth expected in 2012
22nd March 2012 | Page 9
Strong liquidity position
Cash
Bank debt
Bonds
Convertibles
Net debt position
Pro forma Gearing
Cash and undrawn facilities
at 31 Dec 2010$m
300
(488)
( – )
(218)
(406)
26%
1,202
at 31 Dec 2011$m
309
(484)
(341)
(228)
(744)
30%
1,116
Outlook• Current debt funding costs average 5% (fixed) and 3% (floating)• Additional bank and bond debt raised post year-end of $585 million raising cash
and undrawn facilities (after some debt repayment) to $1,400 million by mid-March
22nd March 2012 | Page 10
Fully funded programme
1400
Investment Profile(US$ million)
400
200
0
500
700
900
20132012 2015
800
600
100
300
2014
10001100
Exploration ExpenditureDevelopment Capex1300
1200
Note: assumes exploration expenditure of $250 mm pa from 2013
2012 outlook
•Forecast full-year 2012 spend of ~$740 million (development) and $220 million (exploration)
•Total capex covered by cash flow for 2012 at current spot prices
Forward funding
•Forward profile funded by cash flow and facilities even at $60/bbl
•Significant capacity to increase spend on exploration and new development projects
Outlook• Rising production generates $2 billion post-tax cash flow in 2015 at $100/bbl
22nd March 2012 | Page 11
Operations update
22nd March 2012 | Page 12
Operations highlights
• Chim Sáo and Gajah Baru onstream in October– Deliverability exceeding expectations
• Realising further value from producing assets
• Continued progress on the development portfolio:
– Huntington and Rochelle progressing– Solan project sanction expected soon– Development studies for Catcher well-
advanced
• On track to reach 75,000 boepd run rate by year end 2012, once Huntington and Rochelle onstream
• Anticipate reaching 100,000 boepd when Catcher comes onstream in 2015
22nd March 2012 | Page 13
Production update
• Year-end target of 60,000 boepd achieved– Full year production 40,420 boepd– Strong gas demand in Pakistan and
Indonesia, combined with good facilities performance
– Improved Balmoral production in H2, as maintenance issues were progressed
• Wytch Farm acquisition adds ~2,500 boepd net
• Production at Kyle (1,760 bopd) shut-in since December 2011
• 2012 full year production forecast 60,000-65,000 boepd, with key variables being
– Timing of Huntington first production– Ability to capitalise on excess deliverability
at Chim Sáo and Gajah Baru
50
Production (working interest)(kboepd net)
20
10
0
60
2007 20102008 2009 2012E
30
AsiaMEAPNorth Sea
2011
40
70
22nd March 2012 | Page 14
Natuna ‘A’ 2015
Block A – strong production performance
Anoa & GSA1 • Producing at current maximum capacity
– 170-180 BBtud
• Phase 4 expansion project underway– Raising capacity to 200 BBtud
• Pelikan will add 70 BBtud of capacity
Gajah Baru & GSA2/3/4• Currently producing at 60-90 BBtud
• DCQ increases from 50 to 90 BBtud at end Q1– 200 BBtud well deliverability
• Indonesia will shortly take an additional 40 BBtud when the domestic swap agreement is signed
Outlook• Series of new field developments will maintain rates
• Exploration is adding additional reserves
22nd March 2012 | Page 15
Singapore Gas Market – sales are increasing
Singapore demand for gas will increase• Existing pipeline supplies are naturally declining
• LNG supplies must commence and increase
• But supply diversity will be maintained, and be underpinned by 90% Take or Pay contracts
• GSA1 demand expected to remain between DCQ and Max Rate (341-392 BBtud)
Premier’s GSA1 market share is increasing• Block A contractual market share of GSA1 is 37%
– 2011 Block A actual share of deliveries was 42%
– Block A share of remaining reserves dedicated to GSA1 has increased to 59%
– Other GSA 1 suppliers are expected to drop to 150-100 BBtud in 2015-2016
• GSA 1 market available to Block A could increase to 200-250 BBtud in 2015-2016
22nd March 2012 | Page 16
Chim Sáo – delivered and ramping up
• First oil achieved, safely and on budget, in October 2011
• Currently producing 25,000-30,000 bopd– Gas exports add a further ~4,000 boepd– Rates limited due to water injection
delays– 9 production wells could reach
40,000 bopd– Vessel capacity is 50,000 bopd
• MDS5/6 reserves have increased by10 mmbo
22nd March 2012 | Page 17
Chim Sáo – uncovering upside potential
Chim Sáo North West
• Chim Sáo North West discovered in August 2011
• Additional gross resource estimate 13 to 20 mmbo
• Near vertical appraisal well scheduled for mid-2012
• Development will be via existing facilities
Additional Reservoirs
• Further reserves potential is beingfound in reservoirs other than MDS5/6
Tie-in of Dua
• Government of Vietnam approvedODP in December 2011
• Long lead items being purchased
• Project sanction expected 1H 2012,first oil 2014
2000m
3060mss
ChimSáo
West Closure
Far Closure
Near Closure
22nd March 2012 | Page 18
Kadanwari – getting more from a mature field
Kadanwari field• Came onstream in 1995
• Highest gas price in Pakistan
• 2008-2012, five new gas compartments discovered:– K-27 tied-in to system at 45 mmscfd in 2012– K-28 and K-30, which tested at 30 mmscfd and
50 mmscfd respectively, will be tied-in by mid-2012
• Production levels expected to be at 110 mmscfdduring 2012-2014
• Further exploration well planned for 4Q 2012
Upside potential• 550 bcf of tight gas potential identified in 2011
• 3 well pilot project planned for 2012
22nd March 2012 | Page 19
Wytch Farm – motivated operator finding upside
Increased equity• Increased Working Interest in Wytch Farm by
17.715% to 30.1% in 2011 – ~4,500 boepd of net production in 2012– Adds ~11 mmboe of net reserves
Upside potential• Initiated active drilling programme to 2017 and
beyond to increase deliverability– Infill drilling in producing reservoirs to
accelerate production and optimise recovery
– Bringing into production of satellite discoveries onshore
• Long term production and reserves upside through waterflood optimisation and EOR
• Working with new operator Perenco to maximise value
22nd March 2012 | Page 20
Huntington and Rochelle – progressing to first oil
• Successful development drilling campaign• Phase 1 sub-sea installation completed• CATS gas transportation agreement signed and
shuttle tanker contract awarded• Upgrade of the Voyageur FPSO proceeding• Operator is expecting first oil in Q4 2012
• Rochelle area agreement executed May 2011• Approval of FDP for East and West Rochelle
in 2011• Scott platform modifications underway • Subsea installation to commence in June 2012• First gas expected in November 2012
Huntington Rochelle
22nd March 2012 | Page 21
• Premier is Operator with 60% equity
• Development Concept:– Subsea wells and storage tank– Processing deck on a conventional jacket– Reserves estimate ~ 40 mmbo– Initial rate of 22,000 bopd – Capex of ~$850 mm with $30 mm/year opex
• Premier will provide Chrysaor with:– $50 million carry– Corporate loan for the balance of their equity– Loan recovered through Chrysaor’s cash flow
• Will qualify for new “Small Fields Allowance”
• Internal approvals are in place and seeking partner and DECC approvals before end April
Solan – approaching project sanction
22nd March 2012 | Page 22
Catcher Area – selecting a development concept
• Further 2011 drilling resulted in:– STOIIP estimates of ~260-290 MMSTB– Reserves estimates of 80-130 MMSTB– Production rate of 50-70,000 bopd
• EnCore acquisition has completed– Premier in place as Operator with 50% equity
• Conceptual Engineering studies completed– Capex estimates range from $1.6bn for a leased
FPSO to $2.8bn for a central fixed platform– JV concept selection process is underway
• New “Small Fields Allowance” will apply to seperate accumulations on block
• Targeting sanction by year-end with first oil in 2015
FPSO and Subsea Wells
CPP, Bridge-linked WHP and Subsea Wells
22nd March 2012 | Page 23
Reserves and resources – continuing growth
600
2007
450
400350
0
150200
250300
2008 2009
10050
Reserves and contingent resources(mmboe)
Production Additions &Revisions
End 20112010
2C contingent resources2P reserves
296
550
500 230227
261
Reserve replacement ratio of 333%
22nd March 2012 | Page 24
A clear path to 100,000 boepd
120,000
Production outlook(bbls/day)
40,000
20,000
0
60,000
2012 20142013 2016
100,000
80,000
2015
1100
Development capex(US$ million)
400
200
0
500
700
900
20132012 2015
800
600
100
300
2014
1000
2016
At $100/bbl, expect post tax cash flow of ~$2 billion in 2015
Pre-DevelopmentSanctioned ProjectsOn Production
22nd March 2012 | Page 25
Exploration update
22nd March 2012 | Page 26
• Focus on geologies we know well– Rifts or frontal fold belts
• Target best plays in basins of choice
– Play master approach
• Deliver 200 mmboe of 2P reserve additions by end 2014
• Invest up to 30% of annual cash flows in exploration
• Gated process to decision making
Exploration strategy
Old New
Old
1. Premier capabilities and niche strategies
3. Technology capabilities and resource diversification opportunities O
ld
New
2. Leverage Premier capabilities in new areas
4. Identify long term opportunities for growth and approach to de-risk investment
New
Old New
Geographies
Themes
Themes
Geographies
AsiaMEAP &
ExplorationNew
Business
North Sea
22nd March 2012 | Page 27
2011 highlights
Exploration drilling• Notable discoveries at Burgman in the Catcher
area in the UK, and CRD and Chim Sáo North West in Vietnam
• 12 out of 21 exploration and appraisal wells drilled in 2011 successful
• Additional successes to date in 2012 with Anoa Deep in Indonesia and K-30 in Pakistan
• Remain on track to deliver 200 mmboe by end 2014
– 70 mmboe added to date
New ventures• 2011 highly successful for new acreage capture in
Norway, UK and Kenya
• With lead and prospect maturation, greater visibility for 2014 and beyond
200
100
50
0
150
2012 2013 2014
450
Actual & forecast risked resource additions 2009-2015 (mmboe)
2009Actual
400
350
300
250
2010Actual
2011Actual
2015
Actual cumulative plus possible resourcesCumulative risked prospective resource additionsRisked prospective resource additionsActual proved plus probable additions
•Unrisked prospective portfolio of >1.5 billion boe (350 mmboe risked)
22nd March 2012 | Page 28
NorwayPL378: Grosbeak
UKP1875 ErneStingray
NorwayPL374S: Blabaer
Bonneville
Carnaby
VietnamBlock 12W: CS NW
AppraiseDrillEvaluate
Acquire LicenceGate
Drill Decision Gate
AppraisalApproval Gate
ProjectExtension
Gate
MEA
PN
orth
Sea
Asi
a
Pre-Development
SpaniardsCoaster
CougarRapide
Rocket
K-32Badhra South
Badhra-7
New York
Typhoon
Lacewing
Cyclone
Tupai
AnakondaB Sedang
Kakak Tua
B Kecil
Sambar
CRT
Silver Sillago
Singa / Kuda Laut
Peudawa Rayeu
Alur Kacang
Biawak Besar
Matang
Benteng
Baroosh
Badhra-6 Parh
VietnamBlock 12W: CS Cau
VietnamBlock 087/03 CRD
PakistanKadanwari K-30
Norfolk
Moth E.
Moth S.
Cornet
LEADS PROSPECTS
Dino
Recent acquisitions add to overall portfolio value
Luno II
MATUREPROSPECTS
UNDER APPRAISAL
<10 <100 >100 >250
Net NPV10 $mm
>10 >25 >50<10
Net EMV10 $mm(shown as circle inside NPV)Acreage acquired in 2011
added >$3bn success case NPV (>$400mm EMV)
22nd March 2012 | Page 29
• Targeted play led exploration
• Leveraging extensive datasets and geophysical expertise
• Pushing plays beyond their currently understood limits – wider and deeper
• Future growth from within the portfolio and through new acquisitions and/or licence awards
• Targeting 7-8 wells in 2012 with combined gross mean prospective resource estimate of >350 mmboe
Exploration – North SeaOverview
22nd March 2012 | Page 30
• Premier has the regional database to pursue amplitude supported Tertiary prospectsthroughout the Central North Sea
• 3 firm wells to be drilled in 2012 targetingEocene prospects: Carnaby, Coaster and Cyclone
– Combined gross prospective resource estimate of 48-115-225 mmbo
• The Stringray prospect is attemptingto push the boundaries of theJurassic play fairway to the North
– Gross prospective resource estimate of 12-30-90 mmbo
Exploration – North SeaPushing the plays wider
Cyclone
Coaster
Stingray
Varadero
Carnaby CatcherN & E
Eocene ( Lower Tay) amplitude extraction
Burgman2km
Coaster Tay Amplitudes
Catcher EastDiscovery
CoasterProspect
Eocene Turbidite Sand Fairway
Carnaby
22nd March 2012 | Page 31
Appraisal – North SeaGreater Fyne Area
• Fyne Area entry – seeking incremental reserves to reach development threshold
• Erne and Fyne Appraisal encountered hydrocarbons but limited impact on reserves for Greater Fyne Area
• Reserves insufficient for standalone development
• Economics of tieback to nearby host FPSOs do not currently meet Premier corporate hurdles
• Discussions with partners ongoing
East Fyne
Erne
22nd March 2012 | Page 32
Cyclone (P1784) (21/7b)• Premier 70% equity, block awarded in 2010
• Gross prospective resource estimate (on block) – 20-35-50 mmboe (Tay reservoir)
• Risk assessment: moderate– Critical factor: oil column
• Well planned for Q3 2012
Exploration – North SeaPushing the play wider ... Cyclone
Amplitude extractionGreen - oil?Yellow - gas
Cyclone amplitude responseon far stack data
Balder
2km
Cyclone
Cyclone
22nd March 2012 | Page 33
Norfolk (P1887) (12/16b & 12/17b)• Premier 25% equity, block awarded in 26th Round
• Gross prospective resource estimate (on licence)– 20-146-495 mmboe
• Risk assessment: high– Critical factor: hydrocarbon charge and quality
• Prospect maturation ongoing
Exploration – North SeaPushing the plays wider ... 2013
Norfolk
Norfolk Norfolk
NNW SSEEW
22nd March 2012 | Page 34
• Potential exists for deeper underexplored fairways inthe North Sea
• In 2012, Premier will drill two prospects targeting this deeper potential: Lacewing (Triassic target) and Luno II (Jurassic target)
• Combined gross prospective resource potential of 100-200-400+ mmbo
• Additional prospect maturation ongoing for drilling in 2013 and beyond
Exploration – North SeaPushing the plays deeper
Lacewing
Luno II
22nd March 2012 | Page 35
Exploration – North SeaPushing the plays deeper ... Luno II
Luno II (PL 359)• Premier equity 30%• Greater Luno is a regional high
– Focus for oil migration – Regional top seal drapes the high– Jurassic/Triassic reservoirs flank the high and,
where fractured, basement is also a reservoir– ~2,000 mmboe discovered to date
• Key play risks– Reservoir presence on the margins of the high– Lateral seal
Johan Sverdrup
PL 359
BCU Time MapC.I. 100 ms
Luno/Apollo
Ragnarrock
10km
Luno II Prospect
• Luno II is on the Southwest margin of the Johan Sverdrup high• Mesozoic sand presence interpreted from seismic and local well data• Gross prospective resource estimate: 125mmbo (mean)• Risk assessment: moderate
– Critical factor: lateral seal• Well planned for Q4 2012
22nd March 2012 | Page 36
Lacewing (P1181, 23/21 & 23/22b)• Gross prospective resource estimate
(on block)– 50-70-90 mmboe
• Risk assessment: high– Critical factor: trap effectiveness
and reservoir quality
• Transfer of 37.3% and operatorship to ConocoPhillips plus partial carry
– Premier’s retained equity in the block will be 20.2%
• ConocoPhillips considerable HPHT experience
• Well planned for Q4 2012
Top Triassic Depth Map
Exploration – North SeaPushing the plays deeper ... Lacewing
22nd March 2012 | Page 37
• Play led approach in the Nam Con Son Basin
– North West Chim Sáo Appraisal– Kuda/Singa Laut wells planned– Prospect maturation for 2013
• Adding gas reserves– Anoa Deep success– Biawak Besar planned for late
March– Matang will spud Q3 2012
• Pushing the frontiers– Benteng expected to spud late
March
Exploration – AsiaOverview
Benteng
Chim Sáo
Anoa Deep,Biawak Besar
MatangKuda/Singa Laut
22nd March 2012 | Page 38
Exploration – AsiaKuda/Singa Laut ... 1H 2013
Fluid Detection Volume – 3D Inversion
4 km
Combined Depth Structure Map-32
00m
Kuda/Singa Laut (Tuna Block)• Premier 65% equity and Operator
• Faulted dip closed structure up dip from a proven source kitchen to the east
– Primary reservoir target is Miocene in the Kuda Laut segment and Oligocene in the Singa Laut segment
• Risk assessment: low (amplitude supported)
• Gross prospective resource estimate: 60-100-140 mmbo
• Well planned for 1H 2013Kuda Segment Singa Segment Singa Laut
Kuda Laut
Singa Laut
22nd March 2012 | Page 39
Anoa Deep (Natuna Sea Block A)• Premier 28.67% equity and Operator
• Drilled as an exploration tail to the WL-5 development well
• Encountered ~300 feet of fractured Lama Sandstones
• Lama formation tested and flowed gas – 17 mmscf/d through a 48/64 inch choke– Estimated total gas in place of 70-100-150 bcf
• The well will be tied-in to the Anoa facility
• Significant follow-on potential– Similar sized structures are
mapped at the Top Lama to thenorth and east of Anoa Deep
Exploration – AsiaAnoa Deep success
Top Lama DepthC.I.=100 feet
WL
1 Km
Anoa DeepDiscovery
Anoa North
2 Km
PRIMARY TARGET
NW SE
Anoa Deep (WL-5X)PTD 10850 ft MD (9550 ft TVDss)
Top Lama
22nd March 2012 | Page 40
Benteng (Buton Block)• Premier 30% equity, operated by Japex
• Gross prospective resource estimate: – 77 mmboe (mean)
• Risk assessment: high– Critical factor: trap presence
• Well planned for late March
Buton Block
Bulu-1
Benteng-1PTD 3200m MD
PTD
2 Km2 Km
PRIMARY TARGET
NW SE
Exploration – AsiaPotential play opener ... Benteng
22nd March 2012 | Page 41
L10A & L10B• Potential to extend successful plays to
the south into Kenya• 2535 km2 of 3D seismic successfully
acquired in Q4 2011 – Processing of 3D seismic to be
completed by year-end
• 1030 km of 2D successfully acquired in Q1 2012– Processing to be completed in Q2
2012
• Preliminary data sets show good quality
Exploration – MEAPEntry into offshore Kenya
Test line from the 3D survey
22nd March 2012 | Page 42
Exploration drilling 2012
17 exploration and appraisal wells planned for the remainder of 2012, targeting ~200 mmboe
of net unrisked prospective resourceContingent Wells
Firm Wells: Rig Contracted
Firm Wells: Rig TBC
All well timings are subject to revision for operational reasons
Q1 Q2 Q3 Q4Vietnam Block 12W Chim Sáo NW Appraisal 17 Low
Indonesia Buton Benteng-1 77 High
Natuna Sea Block A Biawak Besar 15 Low
Block A Aceh Matang 40 Low
Norway PL359 Luno II 125 Moderate
UK P1430 Carnaby 34 Low
P1812 Coaster 50 High
P1430 Bonneville TBC Low
P1212/P1771 Stingray 32 Moderate
P1784 Cyclone 35 Moderate
P1655 Spaniards 32 High
P1181 Lacewing 70 High
Pakistan Kadanwari K-32 7 Low
Bhit-Badhra Badhra South Deepening-1 38 High
Badhra-7 10 High
Mauritania Commitment well TBC TBC
Middle East - Africa - Pakistan
Asia 2012 Mean gross unrisked
resource (mmboe) Risk
North Sea
PRA 01
Weatherford 812
Bredford Dolphin
Sedco 711
Sedco 711
Glomar Arctic III
Wilphoenix
Maersk Resiliant
Wilphoenix
West Callisto
ENSCO 107
Sedco 711
Wells to watch in 2012
22nd March 2012 | Page 43
2012 New Venture focus
North Sea (Rift theme)• UK and Norway Licence Rounds• Potential adds through acquisition
MEAP (Rift & Frontal Fold Belt themes)• East Mediterranean and Egypt• Pakistan and Iraq• Expanding Premier’s acreage position in
East Africa
Asia (Rift & Frontal Fold Belt themes)• Andaman Sea• East Vietnam• Frontier Basins of East Indonesia
22nd March 2012 | Page 44
Exploration
Key messages...• Portfolio of >1.5 billion boe of unrisked potential
• Wells to watch
– North Sea: Carnaby, Coaster, Cyclone and Luno II
– Asia: Anoa Deep, Biawak Besar and Chim Sáo North West appraisal
• On track to deliver material programme in 2013 and beyond
• New Venture focus on basins with geologies that we understand
22nd March 2012 | Page 45
Summary
22nd March 2012 | Page 46
Already in 2012...• Solan• Anoa Deep• EnCore Oil• Finance
––––
Board approvalA new exploration play beneath AnoaCompleted acquisition and Cladhan saleCash/undrawn facilities increased to $1.4 bn
Forward plan...• Production • Developments • Exploration • Acquisitions • Cash flow
–––––
Rising production to 100,000 boepdDelivery on time, on budget, operatedEnhancing portfolio materialityWhere we can add valueIncreasing to $2 bn per annum
What can you expect from Premier?
22nd March 2012 | Page 47
Appendix
22nd March 2012 | Page 48
Group taxation position
Overseas
Prior period provisions
UK
PRT
CT
Prior period revisions
Current charge
Deferred tax credits
Tax credit for the year
12 months to31 Dec 2010
$m
56.9
25.9
Nil
(21.3)
61.4
(90.4)
(29.0)
Allowances brought forward
Net additions in 2011 excluding RFES
RFES changes
Tax allowances carried forward*
UK Tax Allowance Position at 31 Dec 2011
$m
1,112
204
44
1,360
12 months to31 Dec 2011
$m
60.1
72.1
17.2
nil
(2.1)
147.3
(177.0)
(29.7)
* fully recognised as deferred tax asset
22nd March 2012 | Page 49
Other developments
• Caledonia will be a tieback to Balmoral but with gas lift from Britannia
• Sanction in 2012 with first oil in 2014• New “Small Field Allowance” expected
Block A Aceh (Vietnam)
• Project sanction delayed– Facilities sharing agreement with Arun
not completed (Arun owner is selling the asset)
– EPCI bid: decision taken to re-tender
• First gas is now scheduled for mid-2015
Caledonia (UK)
22nd March 2012 | Page 50
Other developments
Bream (Norway) Frøy (Norway)
• Work on the stand-alone development remains on hold
• Discussions on joint development are underway with other operators
• Focus is Frigg Gamma Delta where a new operator has recently taken over
• First oil for Froy modelled for 2017
• Development plan progressing and the FPSO has been selected
• FEED is underway on both the FPSO and the subsea scope
• FPSO contract expected soon• Project sanction is planned for Q3 2012,
with first oil in 2015
22nd March 2012 | Page 51
End 2011 2P reserves and contingent resources
North Sea Asia MEAP Total
2P Reserves On production 36.8 74.8 32.5 144.1
Approved for development 16.6 33.7 5.1 55.5
Justified for development 71.8 24.1 0.8 96.7
Total Reserves 125.2 132.6 38.5 296.3
2C Contingent Resources
Development pending 52.9 7.4 1.0 61.3
Un-clarified oron hold 16.1 32.9 15.7 64.6
Development not currently viable 27.6 63.9 12.8 104.4
Total Contingent Resources 96.6 104.2 29.5 230.3
Total Reserves & Contingent Resources 221.8 236.8 68.0 526.6
These figures do not include prospective resources
22nd March 2012 | Page 52
Unrisked Resource Portfolio
Risked Resource Portfolio
Discovered resourceunder appraisal 33 mmboe
Leads196 mmboe
Prospects160 mmboe
Total1,729
mmboe
Total373
mmboe
• Unrisked prospective resource portfolio of 1,696 mmboe
• Portfolio changes from 2010:– Increased lead inventory in Kenya,
Norway and the UK– Prospect inventory adjusted post
2011 drilling
• Risked prospective resource portfolio of356 mmboe
– 160 mmboe in prospects– 196 mmboe in leads– Focus to lead and prospect
maturation in 2012
Prospective resource portfolio
Discovered resourceunder appraisal 17 mmboe
Leads1,186 mmboe
Prospects510 mmboe
22nd March 2012 | Page 53
UKP077: East FyneStingray
NorwayPL374S: Blabaer
Bonneville
Carnaby
VietnamBlock 12W: CS NW
AppraiseDrillEvaluate
Acquire LicenceGate
Drill Decision Gate
AppraisalApproval Gate
ProjectExtension
Gate
MEA
PN
orth
Sea
Asi
a
Pre-Development
Spaniards
Coaster
CougarRapide
Rocket
K-32Badhra South
Badhra-7
New York
Typhoon
Lacewing
Cyclone
Tupai
AnakondaB Sedang
Kakak Tua
B Kecil
Sambar
CRT
Silver Sillago
Singa / Kuda Laut
Peudawa Rayeu
Alur Kacang
Biawak Besar
Matang
Benteng
Baroosh
Badhra-6 Parh
Norfolk
Moth E.
Moth S.
Cornet
Dino
Luno II
Recent acquisitions add to overall portfolio volume
LEADS PROSPECTS MATUREPROSPECTS
UNDER APPRAISAL
<10 10-25 26-49 50+
Net Prospect Rec Resource(mmboe)
Risked
Acreage acquired in 2011
22nd March 2012 | Page 54
Carnaby
Exploration – North SeaCarnaby
Carnaby (28/9)• Premier 35% equity• Gross prospective resource estimate
– 15-30-50 mmbo (Tay reservoir)• Expected phase oil
– Gas in shallower Eocene targets (Upper Tay)• New 3D seismic data work ongoing• Well planned for Q2 2012
Varadero
Carnaby CatcherN & E
Catcher Main
Catcher E
Carnaby
Varadero
NS
Lower Tay
Upper Tay
Burgman
Cromarty Depth Structure
Carnaby Prospect
Eocene ( Lower Tay) amplitude extraction
Carnaby
Burgman
Burgman
22nd March 2012 | Page 55
Exploration – North SeaCoaster
Coaster (28/10a)• Premier 100% equity, TAQA farmed
into 50% interest
• Gross prospective resource estimate13-50-125 mmboe (on block)
• Eocene and Palaeocene reservoirs
• Risk assessment: high – Critical factor: trap and charge
• Well due to spud Q2 2012
Rapide
Cougar
Varadero
Catcher North
JU1
Catcher Tiger
Burgman
Rocket
Paso
Bonneville Area
Vincent
Coaster
JU2
Carnaby
22nd March 2012 | Page 56
Stingray (P1212) (15/13b)• Premier 50% equity, block awarded in 2004
• Gross prospective resource estimate (on block)– 12-30-90 mmboe
• Risk assessment: moderate– Critical factor: trap – sealing fault to the north cannot be
accurately determined
• Planned spud date Q2 2012
Exploration – North SeaStingray
Stingray Prospect
Stingray
22nd March 2012 | Page 57
Spaniards (P1655)• Premier equity 28% and Operator,
adjacent to Scott infrastructure
• Gross prospective resource estimate:– 10-30-40 mmbo
• Risk assessment: high– Critical factor: reservoir development
• Primary Target: – Jurassic Galley Sands (oil)– Appraising down dip extent of crestal
oil discoveries in wells 15/21a-38z and 15/21-2
• Well planned for Q3 2012
Top Galley Sand Depth
14/25a-5
Perth
Halibut Horst
Spaniards WestRyazanian
Spaniards EastGalley
Spaniards CentralGalley
Exploration – North SeaSpaniards
22nd March 2012 | Page 58
Biawak Besar (Natuna Sea Block A)• Premier: 28.67% equity and Operator
• Gross prospective resource estimate 13-15-17 mmboe
• Risk assessment: low– Critical factor: lateral seal presence
• Potential in a stratigraphic trap down-dip of the Iguana-1 discovery
• Well planned for Q2 2012
Top Arang DepthC.I.=100 metres
2000m
Iguana Discovery
Biawak Besar-1
Biawak BesarPTD 5950 ft MD
Top Lama
PTD
500m
SENW
PRIMARYTARGET
Biawak Besar
Exploration – AsiaBiawak Besar
22nd March 2012 | Page 59
Matang (Block A Aceh)• Premier equity 41.67%
• Gross prospective resource estimate 20-40-70 mmboe (whole structure)
• Risk assessment: low – Critical factor: reservoir presence– 250 BCF follow on potential in the success case
• Well planned for Q3 2012
500m
EW
Top Belumai
Matang-1PTD 3000m MD
Matang
Top N4 BelumaiCarbonate
C.I.=50 metres1 Km
Matang-1
Exploration – AsiaMatang
22nd March 2012 | Page 60www.premier-oil.com March 2012