1999 PRELIMIN ARY RESULTS 1999 PRELIMIN ARY RESULTS PRESEN TATIO N - PowerPoint PPT Presentation

1999 PRELIMIN ARY RESULTS 1999 PRELIMIN ARY RESULTS PRESEN TATIO N PRESEN TATIO N 13th March 2000

1999 Preliminary Results Presentation PRESENTATION Introduction Sir David John Overview Charles Jamieson Results John van der Welle Operations Steve Lowden Summary Charles Jamieson Make a Difference

1999 Preliminary Results Presentation 1999 HIGHLIGHTS Strategic - new alliance with Amerada Hess and Petronas Financial - balance sheet strengthened Operational - major gas developments on track Exploration - successes in Pakistan and Indonesia Portfolio - rationalisation continues Make a Difference

1999 Preliminary Results Presentation 1999 OBJECTIVES AND DELIVERY Strengthened finances - £136 million equity injection - $158 million Yetagun financing - $200 bank debt refinancing - Reduced capex and overheads Asian Gas focus - Operated $650 million Yetagun project built - West Natuna gas project progressing on schedule - Significant Naga discovery - potential 2nd gas sale - Zamzama appraisal success - EPS agreed - Agreement to investigate new gas pipeline in Pakistan - Strategic alliance Make a Difference

1999 Preliminary Results Presentation RESULTS Make a Difference

1999 Preliminary Results Presentation 1999 RESULTS SUMMARY 1999 1998 Realised oil prices ($/bbl) (post hedging) 14.93) 13.67) Production volume (mboepd) 29.1) 35.5) £m £m Turnover 89) 105) Operating profit before exceptionals 8) 5) Loss after tax (28) (137) Operating cashflow (after interest and tax) (2) 33) Capital expenditure (including JV’s) 132) 164) Net debt (including JV’s) 267) 289) Gearing (including JV’s) 87) 148) % % Make a Difference

1999 Preliminary Results Presentation PROFIT & LOSS ACCOUNT 1998 1999 (restated) Production (mboepd) 29.1) 35.5) Realised oil price ($/bbl) 14.93) 13.67) £m £m Production down 18% Turnover 89) 105) due to natural field declines, less: share of JV’s turnover (5) -) Fife shutdown and Pakistan JV Group turnover 84) 105) Hedging loss - £14m Production costs (31) (42) (1998 - gain £6m) Amortisation (38) (53) Unit opex at £2.69/boe Exceptional provision (14) (121) unchanged on 1998 Gross profit / (loss) 1 ) (111) DDA decreased by £15m Administration costs (10) (5) due to fall in production Operating (loss) / profit (9) (116) and lowering of DDA rates per boe as a result Operating profit in JV’s 3) -) of 1998 FRS11 write down Total operating loss (6) (116) Write down of Profits on disposals 3) -) Southern Europe pool Net interest (14) (13) Includes Exchange gain / (loss) -) 1) restructuring Loss before tax (17) (128) costs Taxation (11) (9) Sale of Trinidad and other fixed assets Loss after tax (28) (137) Dividend -) -) Increased PRT on Wytch Farm Retained loss (28) (137) Earnings per share - basic and diluted (pence) (2.5) (13.2) Make a Difference

1999 Preliminary Results Presentation CASHFLOW 1999 (as reported excluding JV’s) 1998 £m £m Net cashflow from operations 32) 57) Fall in line with revenue decline - additional JV Net interest (22) (8) cashflow £6m Taxation (12) (16) Lower taxes on lower profits Operating cashflow (after interest and tax) (2) 33) Capital expenditure (101) (164) Build-up capital expenditure Disposals (net) 47) 3) Excl Incl JV Total £m £m JV Dividend -) (4) Exploration 8 21 £m Fields 13 23 99 Net cashflow (56) (132) Other 76 0 12 12 31 132 Share subscription 134) -) 101 Yetagun financing receipt / advance from JV 47) 16) partner (9) 2) Exchange 118) (114) Movement in net debt (289) (175) Opening net debt (171) (289) Closing net debt Make a Difference

1999 Preliminary Results Presentation OIL & GAS ASSETS Intangibles Tangibles Total £m £m £m NBV 1.1.99 54) 414) 468) Additions 9) 102) 111) Capitalised interest -) 6) 6) Transfer to tangibles (15) 15) -) Transfer to JV’s -) (111 (111 Transfer to fixed asset investments (17) ) ) Impairment write down -) (4) (21) Disposals -) (14) (14) Amortisation -) (12) (12) Exchange movement 2) (38) (38) NBV 31.12.99 33) 13) 15) Investment in Yetagun JV company 371) 404) Investment in Premier & Shell Pakistan B.V. 40) Investment in Australian Worldwide Exploration 54) Total fixed assets 21) 519) Make a Difference

1999 Preliminary Results Presentation COMMITTED DEBT Drawn at Facilities 31.12.99 £m £m Bank credit $200m (final maturity 2002) 124 124 Loan notes $280m (final maturity 2008) 174 174 Convertible Capital Bond (maturity 2005) 28 28 326 326 Yetagun financing $158m - $149m drawn (maturity 98 93 2008) 424 419 Availability as at 31.12.99 7 Accrued Yetagun interest 426 Total Make a Difference

1999 Preliminary Results Presentation BALANCE SHEET 1999 1999 1998 (incl. JV’s) (as reported) (as restated) £m £m £m Cash 158 155 28 Debt 426 326 317 Net Debt 268 171 289 Shareholders’ funds 309 309 195 Gearing ratio 87 55 148 % % % Recapitalised, debt refinancing underway and commitments covered Make a Difference

1999 Preliminary Results Presentation OPERATIONS Make a Difference

1999 Preliminary Results Presentation PRODUCTION BY COUNTRY 80,000 Myanmar 70,000 Pakistan Indonesia 60,000 UK Other Produtction (boepd) 50,000 40,000 30,000 20,000 10,000 0 1998 1999 2000 2001 2002 2003 2004 Gas production growth anticipated Make a Difference

1999 Preliminary Results Presentation CAPEX - FIELDS/DEVELOPMENT BY REGION 150 Myanmar Pakistan 125 Indonesia UK Other 100 (£ million) 75 50 25 0 1998 1999 2000 2001 2002 2003 2004 £133 million of equity completes funding of current developments Developments on schedule Make a Difference

1999 Preliminary Results Presentation RESERVES 500 470 460 400 300 Million boe 200 100 4 0 3 11 -100 1998 Produced Discovered Adjustment 1999 & extension Reserves depleted at 2.3% p.a. at 1999 production levels Make a Difference

1999 Preliminary Results Presentation U.K. - CURRENT PRODUCTION 18,100 boepd Scott, Rob Roy, U.K. Kyle Ivanhoe, Hamish, Telford Portfolio focused on Delays on Banff tie-in cash generating assets EWT start-up in 2000 Chestnut Wytch Farm Scott Flora Scotland Kyle Produced 11266 bopd Produced 1900 bopd Extended well M16 Fife and M17 drilled Chestnut Infill drilling planned Northern Fergus Low cost development Ireland candidate Fife / Flora / Fergus Produced 3880 bopd Galahad, FPSO back on location Eire Mordred England Wales Premier interests Oil fields Gas fields Wareham Wytch Farm Make a Difference

1999 Preliminary Results Presentation PAKISTAN - CURRENT PRODUCTION 2,500 boepd Pakistan Bhit and Badhra Significant gas reserves Awaiting development Two gas fields on Development plan agreed production - 2500 boepd Field declared commercial Two recent discoveries Negotiating GSA to supply Zarghun awaiting development 245 mmscfd into existing Discovery Existing activities are carried Zamzama pipelines in 2002 out through a 50:50 JV with Pakistan Discovery Shell Bolan Kadanwari Zamzama Dadhar Production of 65 mmscfd Appraisal well tests 90 mmscfd in 1999 Qadirpur Early production GSA Miano tie-in extends field life negotiations nearing completion Ghauspur KNS Kadanwari Dadu Kirthar Qadripur Zarghun Dumbar Premier interests Increased production capacity Discovery appraised Gas fields to 300 mmscfd Initial development plans Agreed development scope envisage the export of gas to for 500 mmscfd Quetta Bhit Field Badhra Discovery US$ revenue generating business with significant gas upside Nearing commercialisation of Bhit and Zamzama Make a Difference

1999 Preliminary Results Presentation MYANMAR Myanmar Yetagun Thailand YANGON Well head platform installed Production platform 3,600 MW gas-fired power station completed and installed under Yadana FSO mobilised construction (750 mmcfd) Offshore pipeline completed Wang Noi M10 Onshore pipeline completed M12 M13 Ready for gas nominations BANGKOK Yetagun Ratchaburi from 1st April M14 Slight delays to ‘Ratchaburi’ Rayong Mergui and Wang Noi pipeline connector Andaman Sea Gulf of Thailand Khanom Surat Thani Premier interests PHUKET Gas fields Proposed pipeline Existing pipeline Make a Difference

1999 Preliminary Results Presentation YETAGUN DEVELOPMENT PROGRESS Yetagun Production Facilities Development Completed 100% 90% Planned cum. 98.9% Feb 2000 Actual cum. 98.4% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1997 1998 1999 2000 This US$650 million project, operated by Premier, has been delivered on schedule and on budget Make a Difference

1999 Preliminary Results Presentation INDONESIA - CURRENT PRODUCTION 7,900 boepd West Natuna GSA signed Jan ‘99 Conoco operated pipeline - construction ahead Duyong of schedule Kerteh Anoa and Kakap Malaysia Anoa production 4200 boepd Kakap production 3700 boepd Port Klang Gas wells planned Kuala Lumpur for 2000 Port Dickson Kakap Sotong deep well dry Field life extended by gas project Dumai SINGAPORE Make a Difference