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Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
Premier oil exploration_investor_presentation_january_2010_web_version
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  • 1. Exploration Investor Presentation January 2010
  • 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.January 2010 | Page 1
  • 3. Target and strategyExploration is a fundamental part of Premier’s growth strategyTarget• Build three quality businesses which deliver 100 kboepd from 400 mmbbls of reservesStrategy• Attain 75 kboepd from 2P reserves of 265 mmboe• Commercialise contingent resource base of 180 mmboe• Add 200 mmboe of 2P reserves from exploration• Make value-adding acquisitions in three core areas• Maintain a conservative financing planJanuary 2010 | Page 2
  • 4. Exploration – TargetsAdd 200 mmboe net reserves by 2015Global Exploration: 2009Forecast 2C resource additions (mmboe) • Premier added 20 mmboe to 45 mmboe of net400 resources Success Case/NV Unrisked • 5 exploration and 2 appraisal wells (excl Egypt; Success Case/NV Risked350 Unrisked now sold) Risked Cum risked additions • Exploration success rate: 40%300 • Finding cost: $4/boe250 2010-2012200 • Unrisked target resource: 800 mmboe • Risked resource target: 100 mmboe150 • 12 Exploration and appraisal wells planned in 2010100 • Material prospects targeted • Drilling candidates from existing portfolio 50 2012 to 2014 0 2009 2010 2011 2012 2013 2014 • Resource additions must come from success case follow on and/or new venturesJanuary 2010 | Page 3
  • 5. Premier – Petroleum basin focusThe majority of the worlds petroleum resources are found in 3 basin types:• Rift Basins: e.g. North Sea, SE Asia, onshore Africa and West Siberia• Passive Margins: e.g. West Africa / SE Brazil, NW Australia and the Gulf of Mexico• Fold-belts / Forelands: Columbia, Iran / Iraq and PakistanPremier has a competitive advantage in value creating exploration of Rifts and Fold-belts / ForelandsPremier will continue to explore the rift basins of SE Asia and the North Sea and will look to exploit itscompetitive advantages in selected rifts and fold-belt basins of Africa, the Middle East and Central AsiaJanuary 2010 | Page 4
  • 6. Exploration – Historic performancePremier Discoveries 1986-2009* (net mmboe)800 Annual discoveries • Premier began exploring in 1986, initially via entry Cumulative annual into SE Asia700 discoveries • To date Premier has discovered net 800 mmboe at600 an overall commercial success rate of 22% • The commercial discoveries have been made in500 two basin types: 1) Rifts: Southeast Asia and Norway400 2) Frontal Fold-belts: Pakistan300 • The success rate in these basin types is ~40%200 • Since 2000 the exploration success has been dominated by Rift Basin exploration in Asia and latterly in Norway100 0 1985 1990 1995 2000 2005 2010 * Does not include EgyptJanuary 2010 | Page 5
  • 7. Exploration strategyThe goal is to deliver 200mmboe 2P reserves through the drill bitfocussing on areas where we have demonstrated skills and expertiseNear-term programme• Asia: Nam Con Son Basin (Vietnam and Indonesia)• North Sea: UK Central North Sea and Norwegian North SeaNew Venture Activity• Rift Basins: new acreage in the North Sea, Asia and potentially North/East Africa or Central Asia• Frontal Fold-belt plays: new acreage in the Middle East or Central AsiaJanuary 2010 | Page 6
  • 8. Exploration outlook – January 2010Unrisked net potential of 350mmboe 2010 Asia Q1 Q2 Q3 Q4 Vietnam 07/03 Seismic (contingent) 104/109-05 Seismic Indonesia Tuna Prospect A Prospect B Buton Lead B North Sea Norway PL374S (34/2,5) Blabaer Bredford Dolphin PL359 (16/1,4) Greater Luno Transocean Winner PL406 (8/3) Gardrofa Maersk Guardian PL378 Gnatcatcher PL378 Grosbeak Appraisal UK P815 Bugle Appraisal Transocean GSF Arctic IV P1430 Catcher Galaxy II (STC) P1620 Oates Middle East/Pakistan Pakistan Qadirpur Pirkoh-1 Firm Wells: Rig Contracted Firm Wells: Rig TBC Contingent Wells Seismic Programme All well timings are subject to revision for operational reasonsJanuary 2010 | Page 7
  • 9. Exploration – Vietnam / Indonesia – Nam Con SonAn integrated play-based approach to explorationPremier equities• 07/03: 30% and operator• Tuna: 65% and operator, target equity 40% pre-drillProspectivity• 10-15 leads and prospects• Cá Rồng Đó discovery May 2009 (10 mmbo to 70 mmbo gross resource)• Cá Rồng Vang - P&A December 2009• Resource potential 30-100 mmbo per prospect2010 Plan• Fully interpret existing 3D• Acquire 3D over central part of Block 7/03• Drill 2 Tuna prospects2011 Plan• Appraise Cá Rồng Đó discovery• Drill further exploration wells in 07/03January 2010 | Page 8
  • 10. Exploration – Block 07/03 – CRD discovery and CRVAmplitude analysis of 3D is potentially the key to unlocking the prize CRV CRD / CRD North East CRD Discovery NW SE Anomalies associated Anomalies associated with Hydrocarbons with Hydrocarbons? Gas above CRD Low amplitude area due to gas in overburdenJanuary 2010 | Page 9
  • 11. Exploration – Tuna – Regional prospectivityPlan to drill 2 prospects in Q3/Q4 2010 Singa / Kuda Laut Cacing Laut Gajah Laut Utara NW Base Muda SE MMU Arang Top Oil Expulsion Gabus Thermally Thermally Mature Source Mature Source Basement Numerous material drillable prospects being defined on new 3DJanuary 2010 | Page 10
  • 12. Exploration – North SeaPremier’s rift basin expertise is being applied to the North Sea• Active 2010 programme targeting 50- 200 mmboe net to Premier: Blåbaer Gnatcatcher Prospect Potential (mmboe gross) Gnatcatcher 31-60 mmboe Gardrofa 15-115 mmboe Greater Luno 30-150 mmboe Greater Luno Blåbaer 15-75 mmboe Bugle Appraisal Bugle North 7-39 mmboe Oates 25-107 mmboe Bream Gardrofa Catcher 18-33 mmboe Oates Moth/Lacewing• Preparing for 2011 drilling, e.g. Moth/Lacewing CatcherJanuary 2010 | Page 11
  • 13. Exploration – Huntington, Moth and OatesBuilding a new core area in the UK Central North Sea Rift basinHuntington• Premier equity in Block 22/14b is 40%• Concept selection process ongoing• First production forecast for 2012• Unitization process underway• Exploration focus is to Pre-Tertiary potentialMoth• Appraisal of Moth and potentially a deep pre- Cretaceous target (Lacewing) planned for 2011• Premier equity ~50% (BG operator)Oates• Premier 50% equity and operator*• Oates prospect has 25 mmboe to 107 mmboe potential• Low to moderate risk* Subject to DECC approvalJanuary 2010 | Page 12
  • 14. Exploration – UK – OatesOates (P1620) NW Oates SE• Premier 50% equity and operator• Reserve estimate 25-65-107 mmboe• Amplitude supported stratigraphic trap• Low to moderate risk for oil and gas• Drilling planned late Q2/Early Q3 2010• Follow up potential exists at Bowers (10-65 mmboe unrisked reserves) Bowers Amplitude Bloom on Far Stacks Oates Forties Isopach MapJanuary 2010 | Page 13
  • 15. Exploration – Norway – BlåbaerBlåbaer (PL374)• Premier 15% equity• Operated by BG• Reserves estimate 15-30-75 mmboe• Moderate risk for oil• Well status: drilling• Jordbaer project moving forward Blåbaer JordbaerJanuary 2010 | Page 14
  • 16. Exploration – Norway – Greater LunoGreater Luno (Pl 359)• Premier 30% equity• Operated by Lundin• Targeting basement and possible Jurassic sandstones related to the Luno discovery (95 mmboe) on adjacent Lundin-operated block• Estimated reserve range 30-150 mmboe• Moderate risk for oil• Drilling planned for Q1 2010 Greater Luno 16/4-5 Planned Well LocationJanuary 2010 | Page 15
  • 17. Exploration – Norway – Bream, GardrofaSuccess at Gardrofa will lead to a new core area for Premier in Norway Bream (PL 406) • Brent age oil discovered 1971, close to Yme Field • In 2009,17/12-4 and its sidetracks wells appraised this discovery, testing 2,516 boepd • Operated by BG, Premier equity 20% • Estimated reserves 39-50-63 mmboe • Plan of development under review 9/1-1 Gardrofa Prospect Well Location Gardrofa (PL407) • Premier’s first operated licence in Norway • Premier equity 40% • Untested trap flanking a Salt dome feature • Estimated reserves 15-70-115 mmboe • Moderate risk for oil • Well planned for Q3 2010January 2010 | Page 16
  • 18. Exploration challenges1. Access to new opportunities in themes of choice2. Maintaining exploration focus/discipline3. Managing the natural tension between growth ambitions and the production/development of existing resources4. Building a geoscience organisation for the futureJanuary 2010 | Page 17
  • 19. Exploration strategyThe goal is to deliver 200mmboe 2P reserves through the drill bitfocussing on areas where we have demonstrated skills and expertiseNear-term programme• Asia: Nam Con Son Basin (Vietnam and Indonesia)• North Sea: UK Central North Sea and Norwegian North SeaNew Venture Activity• Rift Basins: new acreage in the North Sea, Asia and potentially North/East Africa or Central Asia• Frontal Fold-belt plays: new acreage in the Middle East or Central AsiaJanuary 2010 | Page 18
  • 20. Look forwardEnd 2010 End 2012• Stable production from established • Significantly increased reserve base assets • Run-rate production of 75 kboepd with• Development drilling commenced on key related cash flow expansion projects in Indonesia and Vietnam • Follow-on portfolio of development• New project approvals e.g. Dua, Bream, projects to add 10-15 kboepd Bugle, Fife, Frøy • Fully evaluated Nam Con Son basin• Twelve well exploration programme opportunity completed • Replenished exploration portfolio in• 10-20 prospects brought to drillable areas of existing geological knowledge status for 2011/2012 programmeJanuary 2010 | Page 19
  • 21. AppendixJanuary 2010 | Page 20
  • 22. Exploration – Norway – Grosbeak, GnatcatcherGnatcatcher/Grosbeak (PL 378)• Premier 20% equity (non-operated)• Successful Grosbeak well completed in July 2009 – Close to nearby infrastructure – Oil in Middle Jurassic sandstones – Estimated reserves 30-90-170 mmboe• Gnatcatcher resource estimate 31-40-60 mmboe• Moderate to High risk for oil• Q3 2010 Gnatcatcher Exploration well and Q4 probable Grosbeak appraisal Gnatcatcher SW NEJanuary 2010 | Page 21
  • 23. Exploration – UK – Bugle NorthBugle North (P815)• Premier 41% equity, likely to move to 50%• Nexen operator• Nearfield exploration opportunity• Gross reserves estimate 7-17-39 mmboe• Adjacent Bugle discovery flowed 7,398 bopd and 9.06 mmscfd gas• Drilling planned for Q1 2010January 2010 | Page 22
  • 24. Exploration – UK – MothMoth (P1181)• 50% equity in 23/21• 57.5% operated equity in 23/22b• 70% operated equity in 7/7d and 7/10a• Moth discovery max flow rate 24.4 mmscfd gas and 2460 bopd• Appraisal of Moth and potentially a deep pre- Cretaceous target (Lacewing) are under evaluation• Drilling planned 2011January 2010 | Page 23
  • 25. Exploration – UK – Catcher Catcher (P1430) • Premier equity 50% • Encore operator • Reserves estimates 18-25-33 mmboe • Low risk for gas • Drilling planned Q2 2010 Blocks28/9 & 10c Top Cromarty depth Map W Catcher E Phase Change Top Cromarty Balder Chalk 2 Km 2 KmJanuary 2010 | Page 24
  • 26. Exploration – Indonesia – Buton Buton PSC • Premier equity 30% • Japex operator • Lead B reserve estimates 35-100-300 mmboe • High risk for oil • Prospect maturation ongoing • Drilling planned Q4 2010/Q1 2011 NW Lead B‘B’ SE 0 5000 metersJanuary 2010 | Page 25
  • 27. Premier Oil – a snapshot2009 2009 Production by regionProduction by type Commodity price exposure (kboepd) 2009 2013 39% 61% 62% 38% 16.0 17.2 15.5 21.0 44.2 77.4 11.0 North Sea / West Africa 41.0 Oil Direct oil price linked Asia Gas Regulated gas pricing Middle East-PakistanReserves and resources by category Reserves by region Reserves and resources by region Reserves and resources(mmboe, at 30 June 2009) (mmboe, at 30 June 2009) (mmboe, at 30 June 2009) (mmboe) 500 2C reserves 181 121 49 59 53 158 2P reserves 181 400 300 446 265 446 265 200 144 157 235 100 In production North Sea / West Africa North Sea / West Africa In development Asia Asia 0 2005 2006 2007 2008 Proforma Contingent resources Middle East-Pakistan Middle East-Pakistan 30/6/09January 2010 | Page 26
  • 28. January 2010 | Page 27www.premier-oil.com January 2010

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