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Premier o il

  1. 1. 2011 Annual Results Presentation 22 March 2012
  2. 2. Forward looking statements This presentation may contain forward-looking statements and information that both represents managements 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 1
  3. 3. Agenda Premier today Simon Lockett 2011 financial results Tony Durrant Operations update Neil Hawkings Exploration update Andrew Lodge Summary Simon Lockett22nd March 2012 | Page 2
  4. 4. Over the last 6 years … 338% 80% 40% 72% Over the period, NAV/share CAGR of 14.2%22nd March 2012 | Page 3 excluding oil price effects
  5. 5. Premier today...... 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 Evaluate Drill Appraise strong and rising cash flows LEADS PROSPECTS MATURE PROSPECTS Asia• Proven capability to deliver across the portfolio North Sea Pre- Development MEAP Project Appraisal Extension Approval Gate Gate Drill Decision Gate Acquire Licence Gate22nd March 2012 | Page 4
  6. 6. 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 ~$1.4 billion – Strongly rising cash flows – Record profitability – Continued access to bond and bank markets at favourable rates22nd March 2012 | Page 5
  7. 7. 2011 financial results22nd March 2012 | Page 6
  8. 8. Record profitability 12 months to 12 months to Highlights 31 Dec 2011 31 Dec 2010 Operating costs ($/bbl)Working Interest production (kboepd) 40.4 42.8 2011 2010Entitlement production (kboepd) 37.7 38.3 UK $39.5 $28.7Realised oil price ($/bbl) – pre hedge 111.9 79.7 Indonesia $11.1 $8.5Realised gas price ($/mcf) – pre hedge 8.5 6.3 Pakistan $2.4 $2.0 Vietnam $16.6 – Group $15.9 $13.9 $m $m HedgingSales and other operating revenues 827 764Cost of sales (415) (531) • Net impact on 2011 of $23 million post-taxGross profit 412 233 • 25% of 2012 production hedged atExploration/New Business (211) (87) average of $100/bblGeneral and administration costs (25) (18) • Minimal hedging beyond 2012Operating profit 176 128 TaxationFinancial items (34) (27) 101 • All b/fwd losses recognised asProfit before taxation 142 deferred tax assetTaxation credit 29 29 • $1.36 billion allowances carriedProfit after tax 171 130 forward into 2012 • No UK CT cash taxes until 2018 under existing model using $75/bbl22nd March 2012 | Page 7
  9. 9. Rising cash flows 12 months to 12 months to Estimated capex split ($m) 31 Dec 2011 31 Dec 2010 2011 2010 $m $m Development 433 349 Cash flow from operations 530 505 Exploration 228 165 Taxation (44) (69) 661 514 Operating cash flow 486 436 Regional split ($m) MEAP Capital expenditure (661) (514) $58m (Acquisitions)/disposals, net (90) 13 Finance and other charges, net (50) (70) Total $661m Pre-licence expenditure (23) (19) Net cash flow (338) (154) Asia North Sea $301m $302m Outlook • Operating cash flow increased by 11%; significant growth expected in 201222nd March 2012 | Page 8
  10. 10. Strong liquidity position at 31 Dec 2011 at 31 Dec 2010 $m $m Cash 309 300 Bank debt (484) (488) Bonds (341) (–) Convertibles (228) (218) Net debt position (744) (406) Pro forma Gearing 30% 26% Cash and undrawn facilities 1,116 1,202 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 $1,400 million by mid-March22nd March 2012 | Page 9
  11. 11. Fully funded programme2012 outlook Investment Profile (US$ million)•Forecast full-year 2012 spend of ~$740 1400 Exploration Expendituremillion (development) and $220 million 1300 Development Capex(exploration) 1200 1100•Total capex covered by cash flow for 2012 1000at current spot prices 900 800Forward funding 700•Forward profile funded by cash flow and 600facilities even at $60/bbl 500 400•Significant capacity to increase spend on 300exploration and new development projects 200 100 0 2012 2013 2014 2015 Note: assumes exploration expenditure of $250 mm pa from 2013 Outlook • Rising production generates $2 billion post-tax cash flow in 2015 at $100/bbl22nd March 2012 | Page 10
  12. 12. Operations update22nd March 2012 | Page 11
  13. 13. 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 201522nd March 2012 | Page 12
  14. 14. Production update Production (working interest) • Year-end target of 60,000 boepd achieved (kboepd net) – Full year production 40,420 boepd 70 – Strong gas demand in Pakistan and Asia Indonesia, combined with good facilities 60 MEAP performance North Sea 50 – Improved Balmoral production in H2, as maintenance issues were progressed 40 • Wytch Farm acquisition adds ~2,500 boepd net • Production at Kyle (1,760 bopd) shut-in since 30 December 2011 • 2012 full year production forecast 60,000- 20 65,000 boepd, with key variables being – Timing of Huntington first production 10 – Ability to capitalise on excess deliverability at Chim Sáo and Gajah Baru 0 2007 2008 2009 2010 2011 2012E22nd March 2012 | Page 13
  15. 15. Block A – strong production performanceAnoa & 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 capacityGajah 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 signedOutlook• Series of new field developments will maintain rates• Exploration is adding additional reserves Natuna ‘A’ 201522nd March 2012 | Page 14
  16. 16. Singapore Gas Market – sales are increasingSingapore 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 2015-201622nd March 2012 | Page 15
  17. 17. 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 by 10 mmbo22nd March 2012 | Page 16
  18. 18. Chim Sáo – uncovering upside potentialChim Sáo North West Far Closure• Chim Sáo North West discovered in August 2011 Near Closure• Additional gross resource estimate 13 to 20 mmbo Chim• Near vertical appraisal well scheduled for mid-2012 Sáo• Development will be via existing facilities West ClosureAdditional Reservoirs 3060mss• Further reserves potential is being 2000m found in reservoirs other than MDS5/6Tie-in of Dua• Government of Vietnam approved ODP in December 2011• Long lead items being purchased• Project sanction expected 1H 2012, first oil 201422nd March 2012 | Page 17
  19. 19. Kadanwari – getting more from a mature fieldKadanwari 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 mmscfd during 2012-2014• Further exploration well planned for 4Q 2012Upside potential• 550 bcf of tight gas potential identified in 2011• 3 well pilot project planned for 201222nd March 2012 | Page 18
  20. 20. Wytch Farm – motivated operator finding upsideIncreased 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 reservesUpside 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 value22nd March 2012 | Page 19
  21. 21. Huntington and Rochelle – progressing to first oil Huntington Rochelle• Successful development drilling campaign • Rochelle area agreement executed May 2011• Phase 1 sub-sea installation completed • Approval of FDP for East and West Rochelle• CATS gas transportation agreement signed and in 2011 shuttle tanker contract awarded • Scott platform modifications underway• Upgrade of the Voyageur FPSO proceeding • Subsea installation to commence in June 2012• Operator is expecting first oil in Q4 2012 • First gas expected in November 201222nd March 2012 | Page 20
  22. 22. Solan – approaching project sanction• 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 April22nd March 2012 | Page 21
  23. 23. Catcher Area – selecting a development concept• Further 2011 drilling resulted in: FPSO and Subsea Wells – 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 $2.8bn for a central fixed platform CPP, Bridge-linked WHP and Subsea Wells – JV concept selection process is underway• New “Small Fields Allowance” will apply to seperate accumulations on block• Targeting sanction by year-end with first oil in 201522nd March 2012 | Page 22
  24. 24. Reserves and resources – continuing growth Reserves and contingent resources Reserve replacement ratio of 333% (mmboe) 600 2C contingent resources 550 2P reserves 500 230 227 450 400 350 300 296 250 261 200 150 100 50 0 2007 2008 2009 2010 Production Additions & End 2011 Revisions22nd March 2012 | Page 23
  25. 25. A clear path to 100,000 boepdProduction outlook Development capex(bbls/day) (US$ million)120,000 1100 Pre-Development 1000 Sanctioned Projects On Production100,000 900 800 80,000 700 600 60,000 500 400 40,000 300 20,000 200 100 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 At $100/bbl, expect post tax cash flow of ~$2 billion in 2015 nd22 March 2012 | Page 24
  26. 26. Exploration update22nd March 2012 | Page 25
  27. 27. Exploration strategy Themes• Focus on geologies we know well Old New – Rifts or frontal fold belts 1. Premier capabilities 3. Technology capabilities and niche strategies and resource diversification• Target best plays in basins of opportunities Old Old choice North Sea Geographies Geographies – Play master approach Asia MEAP & Exploration• Deliver 200 mmboe of 2P reserve New Business additions by end 2014 New New 4. Identify long term• Invest up to 30% of annual cash 2. Leverage Premier opportunities for capabilities in new growth and approach flows in exploration areas to de-risk investment Old New• Gated process to decision making Themes22nd March 2012 | Page 26
  28. 28. 2011 highlightsExploration drilling Actual & forecast risked resource additions• Notable discoveries at Burgman in the Catcher 2009-2015 (mmboe) area in the UK, and CRD and Chim Sáo North West in Vietnam 450 Actual cumulative plus possible resources• 12 out of 21 exploration and appraisal wells drilled Cumulative risked prospective resource additions 400 Risked prospective resource additions in 2011 successful Actual proved plus probable additions• Additional successes to date in 2012 with Anoa 350 Deep in Indonesia and K-30 in Pakistan 300• Remain on track to deliver 200 mmboe by end 2014 250 – 70 mmboe added to date 200New ventures 150• 2011 highly successful for new acreage capture in Norway, UK and Kenya 100• With lead and prospect maturation, greater visibility for 2014 and beyond 50 •Unrisked prospective portfolio of >1.5 billion boe 0 2009 2010 2011 2012 2013 2014 2015 (350 mmboe risked) Actual Actual Actual22nd March 2012 | Page 27
  29. 29. Recent acquisitions add to overall portfolio value Evaluate Drill Appraise LEADS PROSPECTS MATURE UNDER PROSPECTS APPRAISAL Silver Tupai Asia Sillago Anakonda B Kecil B Sedang Singa / Alur Kuda Laut Kakak Benteng Kacang Vietnam CRT Tua Block 12W: CS NW Peudawa Matang Vietnam Rayeu Sambar Block 12W: CS Cau Biawak Besar Vietnam Baroosh Block 087/03 CRD North Sea Dino New Luno II Norway York PL378: Grosbeak Lacewing Carnaby Pre- Moth S. Cougar Norway Development Rapide PL374S: Blabaer Moth E. Typhoon UK Stingray P1875 Erne Norfolk Rocket Cyclone Coaster Bonneville Pakistan Spaniards Cornet Badhra-7 Kadanwari K-30 Badhra South K-32 MEAP Badhra-6 Parh Project Appraisal Extension Approval Gate Gate Drill Decision Gate Net NPV10 $mm Net EMV10 $mm Acreage acquired in 2011 (shown as circle inside NPV) added >$3bn success case <10 <100 >100 >250 <10 >10 >25 >50Acquire Licence Gate NPV (>$400mm EMV)22nd March 2012 | Page 28
  30. 30. Exploration – North SeaOverview• 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 mmboe22nd March 2012 | Page 29
  31. 31. Exploration – North SeaPushing the plays wider• Premier has the regional database to pursue amplitude supported Tertiary prospects Stingray throughout the Central North Sea• 3 firm wells to be drilled in 2012 targeting Eocene prospects: Carnaby, Coaster and Cyclone Cyclone – Combined gross prospective resource estimate of 48-115-225 mmbo Carnaby Coaster• The Stringray prospect is attempting to push the boundaries of the Eocene Turbidite Sand Fairway Jurassic play fairway to the North Eocene ( Lower Tay) amplitude extraction Coaster Tay Amplitudes – Gross prospective resource estimate of 12-30-90 mmbo Varadero Catcher East Discovery Catcher Carnaby N&E Burgman Coaster Prospect 2km22nd March 2012 | Page 30
  32. 32. 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 East Fyne reserves for Greater Fyne Area• Reserves insufficient for standalone development Erne• Economics of tieback to nearby host FPSOs do not currently meet Premier corporate hurdles• Discussions with partners ongoing22nd March 2012 | Page 31
  33. 33. Exploration – North SeaPushing the play wider ... CycloneCyclone (P1784) (21/7b)• Premier 70% equity, block awarded in 2010• Gross prospective resource estimate (on block) Cyclone – 20-35-50 mmboe (Tay reservoir)• Risk assessment: moderate – Critical factor: oil column• Well planned for Q3 2012 Cyclone Balder Amplitude extraction Cyclone amplitude response Green - oil? on far stack data Yellow - gas 2km22nd March 2012 | Page 32
  34. 34. Exploration – North SeaPushing the plays wider ... 2013Norfolk (P1887) (12/16b & 12/17b)• Premier 25% equity, block awarded in 26th Round Norfolk• Gross prospective resource estimate (on licence) – 20-146-495 mmboe• Risk assessment: high – Critical factor: hydrocarbon charge and quality• Prospect maturation ongoing Norfolk Norfolk W E NNW SSE22nd March 2012 | Page 33
  35. 35. Exploration – North SeaPushing the plays deeper• Potential exists for deeper underexplored fairways in the North Sea Luno II• 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 Lacewing• Additional prospect maturation ongoing for drilling in 2013 and beyond22nd March 2012 | Page 34
  36. 36. Exploration – North SeaPushing the plays deeper ... Luno IILuno II (PL 359)• Premier equity 30% Ragnarrock• Greater Luno is a regional high – Focus for oil migration Luno/Apollo Johan Sverdrup – Regional top seal drapes the high – Jurassic/Triassic reservoirs flank the high and, where fractured, basement is also a reservoir PL 359 – ~2,000 mmboe discovered to date• Key play risks – Reservoir presence on the margins of the high Luno II Prospect – Lateral seal BCU Time Map C.I. 100 ms 10km • 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 201222nd March 2012 | Page 35
  37. 37. Exploration – North SeaPushing the plays deeper ... LacewingLacewing (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 Top Triassic Depth Map – Premier’s retained equity in the block will be 20.2% • ConocoPhillips considerable HPHT experience• Well planned for Q4 201222nd March 2012 | Page 36
  38. 38. Exploration – AsiaOverview• Play led approach in the Nam Con Chim Sáo Son Basin – North West Chim Sáo Appraisal Kuda/Singa Laut Matang – Kuda/Singa Laut wells planned Anoa Deep, Biawak Besar – Prospect maturation for 2013• Adding gas reserves – Anoa Deep success – Biawak Besar planned for late Benteng March – Matang will spud Q3 2012• Pushing the frontiers – Benteng expected to spud late March22nd March 2012 | Page 37
  39. 39. Exploration – AsiaKuda/Singa Laut ... 1H 2013Kuda/Singa Laut (Tuna Block) Combined Depth Structure Map• Premier 65% equity and Operator• Faulted dip closed structure up dip from a proven source kitchen to the east 0m Kuda Laut – Primary reservoir target is Miocene in the Kuda Laut 20 -3 segment and Oligocene in the Singa Laut segment Singa Laut• Risk assessment: low (amplitude supported)• Gross prospective resource estimate: 60-100-140 mmbo 4 km• Well planned for 1H 2013Kuda Segment Singa Segment Singa Laut Fluid Detection Volume – 3D Inversion22nd March 2012 | Page 38
  40. 40. Exploration – AsiaAnoa Deep successAnoa Deep (Natuna Sea Block A)• Premier 28.67% equity and Operator Anoa North• Drilled as an exploration tail to the WL-5 development well• Encountered ~300 feet of fractured Lama Sandstones• Lama formation tested and flowed gas WL Anoa Deep – 17 mmscf/d through a 48/64 inch choke Discovery – Estimated total gas in place of 70-100-150 bcf Top Lama Depth C.I.=100 feet• The well will be tied-in to the Anoa facility 1 Km Anoa Deep (WL-5X)• Significant follow-on potential PTD 10850 ft MD (9550 ft TVDss) NW SE – Similar sized structures are mapped at the Top Lama to the north and east of Anoa Deep Top Lama PRIMARY TARGET 2 Km22nd March 2012 | Page 39
  41. 41. Exploration – AsiaPotential play opener ... Benteng Benteng-1Benteng (Buton Block) PTD 3200m MD• Premier 30% equity, operated by Japex NW SE Bulu-1• Gross prospective resource estimate: – 77 mmboe (mean)• Risk assessment: high – Critical factor: trap presence• Well planned for late March PTD PRIMARY TARGET 2 Km 2 Km Buton Block22nd March 2012 | Page 40
  42. 42. Exploration – MEAPEntry into offshore KenyaL10A & 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 Test line from the 3D survey22nd March 2012 | Page 41
  43. 43. Exploration drilling 2012 2012 Mean gross unriskedAsia Q1 Q2 Q3 Q4 resource (mmboe) RiskVietnam Block 12W Chim Sáo NW Appraisal ENSCO 107 17 LowIndonesia Buton Benteng-1 PRA 01 77 High Natuna Sea Block A Biawak Besar W est Callisto 15 Low Block A Aceh Matang 40 LowNorth SeaNorway PL359 Luno II Bredford Dolphin 125 ModerateUK P1430 Carnaby Sedco 711 34 Low P1812 Coaster Sedco 711 50 High P1430 Bonneville Sedco 711 TBC Low P1212/P1771 Stingray Glomar Arctic III 32 Moderate P1784 Cyclone Wilphoenix 35 Moderate P1655 Spaniards Wilphoenix 32 High P1181 Lacewing Maersk Resiliant 70 HighMiddle East - Africa - PakistanPakistan Kadanwari K-32 Weatherford 812 7 Low Bhit-Badhra Badhra South Deepening-1 38 High Badhra-7 10 HighMauritania Commitment well TBC TBCAll well timings are subject to revision for operational reasons Firm Wells: Rig Contracted 17 exploration and appraisal wells planned for Firm Wells: Rig TBC the remainder of 2012, targeting ~200 mmboe Contingent Wells of net unrisked prospective resource Wells to watch in 2012 nd22 March 2012 | Page 42
  44. 44. 2012 New Venture focusNorth Sea (Rift theme)• UK and Norway Licence Rounds• Potential adds through acquisitionMEAP (Rift & Frontal Fold Belt themes)• East Mediterranean and Egypt• Pakistan and Iraq• Expanding Premier’s acreage position in East AfricaAsia (Rift & Frontal Fold Belt themes)• Andaman Sea• East Vietnam• Frontier Basins of East Indonesia22nd March 2012 | Page 43
  45. 45. 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 understand22nd March 2012 | Page 44
  46. 46. Summary22nd March 2012 | Page 45
  47. 47. What can you expect from Premier? Already in 2012... • Solan – Board approval • Anoa Deep – A new exploration play beneath Anoa • EnCore Oil – Completed acquisition and Cladhan sale • Finance – Cash/undrawn facilities increased to $1.4 bn Forward plan... • Production – Rising production to 100,000 boepd • Developments – Delivery on time, on budget, operated • Exploration – Enhancing portfolio materiality • Acquisitions – Where we can add value • Cash flow – Increasing to $2 bn per annum22nd March 2012 | Page 46
  48. 48. Appendix22nd March 2012 | Page 47
  49. 49. Group taxation position 12 months to 12 months to UK Tax Allowance Position 31 Dec 2011 31 Dec 2010 at 31 Dec 2011 $m $m $m Overseas 60.1 56.9 Allowances brought forward 1,112 Prior period provisions 72.1 Net additions in 2011 excluding RFES 204 UK RFES changes 44 PRT 17.2 25.9 Tax allowances carried forward* 1,360 CT nil Nil * fully recognised as deferred tax asset Prior period revisions (2.1) (21.3) Current charge 147.3 61.4 Deferred tax credits (177.0) (90.4) Tax credit for the year (29.7) (29.0)22nd March 2012 | Page 48
  50. 50. Other developments Block A Aceh (Vietnam) Caledonia (UK) • Project sanction delayed • Caledonia will be a tieback to Balmoral – Facilities sharing agreement with Arun but with gas lift from Britannia not completed (Arun owner is selling • Sanction in 2012 with first oil in 2014 the asset) • New “Small Field Allowance” expected – EPCI bid: decision taken to re-tender • First gas is now scheduled for mid-201522nd March 2012 | Page 49
  51. 51. Other developments Bream (Norway) Frøy (Norway) • Development plan progressing and the • Work on the stand-alone development FPSO has been selected remains on hold • FEED is underway on both the FPSO • Discussions on joint development are and the subsea scope underway with other operators • FPSO contract expected soon • Focus is Frigg Gamma Delta where a • Project sanction is planned for Q3 2012, new operator has recently taken over with first oil in 2015 • First oil for Froy modelled for 201722nd March 2012 | Page 50
  52. 52. 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 16.6 33.7 5.1 55.5 development Justified for 71.8 24.1 0.8 96.7 development Total Reserves 125.2 132.6 38.5 296.3 2C Contingent Development 52.9 7.4 1.0 61.3 Resources pending Un-clarified or 16.1 32.9 15.7 64.6 on hold Development not 27.6 63.9 12.8 104.4 currently viable Total Contingent 96.6 104.2 29.5 230.3 Resources Total Reserves & Contingent 221.8 236.8 68.0 526.6 Resources These figures do not include prospective resources22nd March 2012 | Page 51
  53. 53. Prospective resource portfolio• Unrisked prospective resource portfolio Unrisked Resource Portfolio Discovered resource of 1,696 mmboe under appraisal 33 mmboe• Portfolio changes from 2010: – Increased lead inventory in Kenya, Total Norway and the UK Prospects 510 mmboe 1,729 Leads 1,186 mmboe mmboe – Prospect inventory adjusted post 2011 drilling• Risked prospective resource portfolio of 356 mmboe Risked Resource Portfolio Discovered resource – 160 mmboe in prospects under appraisal 17 mmboe – 196 mmboe in leads – Focus to lead and prospect Total maturation in 2012 Prospects 373 Leads 160 mmboe 196 mmboe mmboe22nd March 2012 | Page 52
  54. 54. Recent acquisitions add to overall portfolio volume Evaluate Drill Appraise LEADS PROSPECTS MATURE UNDER PROSPECTS APPRAISAL Tupai Asia Silver Sillago Anakonda B Sedang Singa / Alur Kuda Laut B Kecil Kakak Benteng Kacang Vietnam CRT Tua Block 12W: CS NW Peudawa Matang Rayeu Sambar Biawak Baroosh Besar North Sea Dino New York Luno II Lacewing Carnaby Pre- Moth S. Cougar Norway Development Rapide PL374S: Blabaer Moth E. Typhoon UK Stingray P077: East Fyne Cyclone Coaster Norfolk Rocket Bonneville Spaniards Cornet Badhra-7 Badhra South K-32 MEAP Badhra-6 Parh Project Appraisal Extension Approval Gate Gate Drill Decision Gate Net Prospect Rec Resource (mmboe)Acquire Licence <10 10-25 26-49 50+ Acreage acquired in 2011 Gate Risked22nd March 2012 | Page 53
  55. 55. Exploration – North SeaCarnabyCarnaby (28/9) Cromarty Depth Structure Varadero• Premier 35% equity• Gross prospective resource estimate – 15-30-50 mmbo (Tay reservoir) Catcher E• Expected phase oil Catcher Main – Gas in shallower Eocene targets (Upper Tay) Carnaby Prospect• New 3D seismic data work ongoing Carnaby Burgman• Well planned for Q2 2012 Carnaby Eocene ( Lower Tay) amplitude extraction S N Upper Tay Varadero Lower Tay Carnaby Catcher N&E Carnaby Burgman Burgman22nd March 2012 | Page 54
  56. 56. Exploration – North SeaCoasterCoaster (28/10a) Rapide JU1 Vincent• Premier 100% equity, TAQA farmed Varadero into 50% interest Catcher North Cougar• Gross prospective resource estimate 13-50-125 mmboe (on block) Carnaby Tiger Coaster• Eocene and Palaeocene reservoirs Catcher Burgman• Risk assessment: high – Critical factor: trap and charge Paso JU2• Well due to spud Q2 2012 Bonneville Area Rocket22nd March 2012 | Page 55
  57. 57. Exploration – North SeaStingrayStingray (P1212) (15/13b)• Premier 50% equity, block awarded in 2004 Stingray• 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 Stingray Prospect22nd March 2012 | Page 56
  58. 58. Exploration – North SeaSpaniardsSpaniards (P1655) Spaniards West Perth Spaniards Central Spaniards East Ryazanian Galley Galley• Premier equity 28% and Operator, adjacent to Scott infrastructure 14/25a-5• Gross prospective resource estimate: – 10-30-40 mmbo Ha li b u• Risk assessment: high tH o rs t – Critical factor: reservoir development Top Galley Sand Depth• 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 201222nd March 2012 | Page 57
  59. 59. Exploration – AsiaBiawak BesarBiawak Besar (Natuna Sea Block A)• Premier: 28.67% equity and Operator Iguana Discovery• Gross prospective resource estimate 13-15-17 mmboe• Risk assessment: low Biawak Besar-1 – Critical factor: lateral seal presence• Potential in a stratigraphic trap down-dip of the Iguana-1 Top Arang Depth C.I.=100 metres discovery 2000m• Well planned for Q2 2012 Biawak Besar PTD 5950 ft MD NW SE Top Lama PRIMARY TARGET PTD Biawak Besar 500m22nd March 2012 | Page 58
  60. 60. Exploration – AsiaMatangMatang (Block A Aceh)• Premier equity 41.67% Matang• 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 Matang-1 PTD 3000m MD W E Matang-1 Top N4 Belumai Top Belumai Carbonate C.I.=50 metres 1 Km 500m22nd March 2012 | Page 59
  61. 61. www.premier-oil.com22nd March 2012 | Page 60 March 2012

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