2. 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 1
3. Agenda
Premier today Simon Lockett
2011 financial results Tony Durrant
Operations update Neil Hawkings
Exploration update Andrew Lodge
Summary Simon Lockett
22nd March 2012 | Page 2
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. 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
Gate
22nd March 2012 | Page 4
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 ~$1.4 billion
– Strongly rising cash flows
– Record profitability
– Continued access to bond and bank markets at favourable rates
22nd March 2012 | Page 5
8. Record profitability
12 months to 12 months to Highlights
31 Dec 2011 31 Dec 2010
Operating costs ($/bbl)
Working Interest production (kboepd) 40.4 42.8
2011 2010
Entitlement production (kboepd) 37.7 38.3
UK $39.5 $28.7
Realised oil price ($/bbl) – pre hedge 111.9 79.7 Indonesia $11.1 $8.5
Realised gas price ($/mcf) – pre hedge 8.5 6.3 Pakistan $2.4 $2.0
Vietnam $16.6 –
Group $15.9 $13.9
$m $m
Hedging
Sales and other operating revenues 827 764
Cost of sales (415) (531) • Net impact on 2011 of $23 million
post-tax
Gross profit 412 233
• 25% of 2012 production hedged at
Exploration/New Business (211) (87) average of $100/bbl
General and administration costs (25) (18) • Minimal hedging beyond 2012
Operating profit 176 128
Taxation
Financial items (34) (27)
101 • All b/fwd losses recognised as
Profit before taxation 142
deferred tax asset
Taxation credit 29 29 • $1.36 billion allowances carried
Profit after tax 171 130 forward into 2012
• No UK CT cash taxes until 2018 under
existing model using $75/bbl
22nd March 2012 | Page 7
9. Rising cash flows
12 months to 12 months to Estimated capex split ($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 2012
22nd March 2012 | Page 8
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 $1,400 million by mid-March
22nd March 2012 | Page 9
11. Fully funded programme
2012 outlook Investment Profile
(US$ million)
•Forecast full-year 2012 spend of ~$740 1400
Exploration Expenditure
million (development) and $220 million 1300 Development Capex
(exploration) 1200
1100
•Total capex covered by cash flow for 2012 1000
at current spot prices 900
800
Forward funding
700
•Forward profile funded by cash flow and 600
facilities even at $60/bbl 500
400
•Significant capacity to increase spend on 300
exploration 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/bbl
22nd March 2012 | Page 10
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 2015
22nd March 2012 | Page 12
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 2012E
22nd March 2012 | Page 13
15. 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 Natuna ‘A’ 2015
22nd March 2012 | Page 14
16. 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 15
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 mmbo
22nd March 2012 | Page 16
18. Chim Sáo – uncovering upside potential
Chim 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 Closure
Additional Reservoirs
3060mss
• Further reserves potential is being 2000m
found in reservoirs other than MDS5/6
Tie-in of Dua
• Government of Vietnam approved
ODP in December 2011
• Long lead items being purchased
• Project sanction expected 1H 2012,
first oil 2014
22nd March 2012 | Page 17
19. 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 mmscfd
during 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 18
20. 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 19
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 2012
22nd March 2012 | Page 20
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 April
22nd March 2012 | Page 21
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 $2.8bn for a central fixed platform CPP, Bridge-linked WHP and Subsea Wells
– JV concept selection process is underway
• New “Small Fields Allowance” will apply to seperate
accumulations on block
• Targeting sanction by year-end with first oil in 2015
22nd March 2012 | Page 22
24. Reserves and resources – continuing growth
Reserves and contingent resources Reserve replacement ratio of 333%
(mmboe)
600
2C contingent resources
550 2P reserves
500 230
227
450
400
350
300
296
250 261
200
150
100
50
0
2007 2008 2009 2010 Production Additions & End 2011
Revisions
22nd March 2012 | Page 23
25. A clear path to 100,000 boepd
Production outlook Development capex
(bbls/day) (US$ million)
120,000 1100
Pre-Development
1000 Sanctioned Projects
On Production
100,000 900
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
nd
22 March 2012 | Page 24
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
Themes
22nd March 2012 | Page 26
28. 2011 highlights
Exploration 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
200
New 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 Actual
22nd March 2012 | Page 27
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 >50
Acquire Licence
Gate
NPV (>$400mm EMV)
22nd March 2012 | Page 28
30. Exploration – North Sea
Overview
• 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
22nd March 2012 | Page 29
31. Exploration – North Sea
Pushing 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
2km
22nd March 2012 | Page 30
32. Appraisal – North Sea
Greater 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 ongoing
22nd March 2012 | Page 31
33. Exploration – North Sea
Pushing the play wider ... Cyclone
Cyclone (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
2km
22nd March 2012 | Page 32
34. Exploration – North Sea
Pushing the plays wider ... 2013
Norfolk (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 SSE
22nd March 2012 | Page 33
35. Exploration – North Sea
Pushing 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 beyond
22nd March 2012 | Page 34
36. Exploration – North Sea
Pushing the plays deeper ... Luno II
Luno 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 2012
22nd March 2012 | Page 35
37. Exploration – North Sea
Pushing the plays deeper ... Lacewing
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
Top Triassic Depth Map
– Premier’s retained equity in the
block will be 20.2%
• ConocoPhillips considerable HPHT
experience
• Well planned for Q4 2012
22nd March 2012 | Page 36
38. Exploration – Asia
Overview
• 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
March
22nd March 2012 | Page 37
39. Exploration – Asia
Kuda/Singa Laut ... 1H 2013
Kuda/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 2013
Kuda Segment Singa Segment Singa Laut
Fluid Detection Volume – 3D Inversion
22nd March 2012 | Page 38
40. Exploration – Asia
Anoa Deep success
Anoa 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 Km
22nd March 2012 | Page 39
41. Exploration – Asia
Potential play opener ... Benteng
Benteng-1
Benteng (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 Block
22nd March 2012 | Page 40
42. Exploration – MEAP
Entry into offshore Kenya
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
Test line from the 3D survey
22nd March 2012 | Page 41
43. Exploration drilling 2012
2012 Mean gross unrisked
Asia Q1 Q2 Q3 Q4 resource (mmboe) Risk
Vietnam Block 12W Chim Sáo NW Appraisal ENSCO 107 17 Low
Indonesia Buton Benteng-1 PRA 01 77 High
Natuna Sea Block A Biawak Besar W est Callisto 15 Low
Block A Aceh Matang 40 Low
North Sea
Norway PL359 Luno II Bredford Dolphin 125 Moderate
UK 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 High
Middle East - Africa - Pakistan
Pakistan Kadanwari K-32 Weatherford 812 7 Low
Bhit-Badhra Badhra South Deepening-1 38 High
Badhra-7 10 High
Mauritania Commitment well TBC TBC
All 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
nd
22 March 2012 | Page 42
44. 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 43
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 understand
22nd March 2012 | Page 44
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 annum
22nd March 2012 | Page 46
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. 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-2015
22nd March 2012 | Page 49
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 2017
22nd March 2012 | Page 50
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 resources
22nd March 2012 | Page 51
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
mmboe
22nd March 2012 | Page 52
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 Risked
22nd March 2012 | Page 53
55. Exploration – North Sea
Carnaby
Carnaby (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
Burgman
22nd March 2012 | Page 54
56. Exploration – North Sea
Coaster
Coaster (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
Rocket
22nd March 2012 | Page 55
57. Exploration – North Sea
Stingray
Stingray (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 Prospect
22nd March 2012 | Page 56
58. Exploration – North Sea
Spaniards
Spaniards (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 2012
22nd March 2012 | Page 57
59. Exploration – Asia
Biawak Besar
Biawak 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
500m
22nd March 2012 | Page 58
60. Exploration – Asia
Matang
Matang (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
500m
22nd March 2012 | Page 59
