2000 P P RELIMINARY RELIMINARY R R ESULTS ESULTS P P RESENTATION - PowerPoint PPT Presentation

2000 P P RELIMINARY RELIMINARY R R ESULTS ESULTS P P RESENTATION 2000 RESENTATION 12th March 2001

2000 Preliminary Results Presentation PRESENTATION Introduction and Overview Sir David John Results John van der Welle Operations Richard Liddell Strategy and Outlook Charles Jamieson Make a Difference

2000 Preliminary Results Presentation HIGHLIGHTS Return to profits Outstanding exploration & appraisal results Growing reserves base Developments on track Strengthened board & management Make a Difference

2000 Preliminary Results Presentation R ESULTS Make a Difference

2000 Preliminary Results Presentation RESULTS OVERVIEW Production 27.3 mboed (1999 : 29.1 mboed) Operating profit £35.2 million (1999 : loss £6.3 million) Net profit £6.1 million (1999 : restated loss £27.7 million) Treatment of Yetagun take or pay – SORP Full provision for deferred taxes – FRS19 Make a Difference

2000 Preliminary Results Presentation ACCOUNTING ISSUES SORP (Accounting for Oil & Gas) - Yetagun Take or Pay – “record a liability account until make-up gas delivered “ (para 130 (b)) - Revenue deferred £ 11.8 million - Net profit deferred £8.1 million FRS 19 (deferred taxation) - Full provision to harmonise with international standards - Prior year adjustment £32.8 million Make a Difference

2000 Preliminary Results Presentation PROFIT & LOSS ACCOUNT 2000 1999 (restated) Production (mboepd) 27.3 29.1 Excludes Yetagun ToP Realised oil price ($/bbl) 21.62 14.93 (SORP) Realised gas price ($/mcf) 2.64 1.87 £m £m Hedging loss £28.7m Turnover 116 89 Unit opex (incl JV’s) less: share of JVs turnover (16) (5) £4.1/boe – Kyle EWT and field declines Group turnover 100 84 Operating costs (33) (31) Unit DDA (incl JV’s) £3.4/boe Amortisation (33) (38) Other 2 (14) Reduction due to one-off in 1999 Gross profit 36 1 Administration costs (7) (10) Startup of production in Myanmar Operating profit / (loss) 29 (9) Operating profit in JVs 6 3 Higher debt and cessation Total operating profit / (loss) 35 (6) of capitalisation on Yetagun Profit on disposal 1 3 Net interest (22) (14) Exchange gain 3 - Profit / (loss) before tax 17 (17) Taxation (11) (11) Profit / (loss) after tax 6 (28) Earnings per share - basic and diluted (pence) 0.4 (2.5) Make a Difference

2000 Preliminary Results Presentation CASHFLOW 2000 2000 1999 (Incl. JVs) (As reported) (As reported) £m £m £m Net cashflow from operations 52 42 32 Increase in line with higher net revenues Net interest (17) (17) (22) Taxation (17) (17) (12) Higher taxes on Operating cashflow (after interest and tax) 18 8 (2) higher profits Capital expenditure (160) (141) (101) Build-up capital Disposals (net) - - 47 expenditure Net cashflow (142) (133) (56) Excl JV JV Total £m £m £m Share subscription - - 134 Exploration 12 10 22 Fields 129 9 138 Net receipt from JV - - 47 141 19 160 Exchange/other (27) (16) (7) Movement in net debt (169) (149) 118 Yetagun interest accrued (8) - - Opening net debt (268) (171) (289) Closing net debt (445) (320) (171) Make a Difference

2000 Preliminary Results Presentation BALANCE SHEET 2000 2000 1999 (incl. JVs) (As reported) (As restated) £m £m £m Cash 30 27 154 Debt 475 347 325 Net debt 445 320 171 Shareholders’ funds 290 NA NA Gearing ratio 153 % NA NA Gearing well within debt covenants Make a Difference

2000 Preliminary Results Presentation PRODUCTION AND CAPITAL EXPENDITURE 80,000 160 140 60,000 120 Production (boepd) Capex £ million 100 40,000 80 60 20,000 40 Production 20 Capital Expenditure 0 0 2000 2001 2002 2003 2004 Crossover – falling capex and rising cashflow Make a Difference

2000 Preliminary Results Presentation O PERATIONS Make a Difference

2000 Preliminary Results Presentation OPERATIONS HIGHLIGHTS Production performance World class developments Exploration successes Reserves enhancement Make a Difference

2000 Preliminary Results Presentation PRODUCTION DELIVERING OPERATIONS PERFORMANCE 80,000 Production 60,000 Production (boepd) 40,000 20,000 0 2000 2001 2002 2003 2004 Make a Difference

2000 Preliminary Results Presentation MYANMAR – YETAGUN WORLD CLASS DEVELOPMENTS $650 million major project (Premier 26.7%) – Premier operated Delivered on time, on budget Expected to deliver DCQ within 2001 Paid on time for gas delivered Make a Difference

2000 Preliminary Results Presentation INDONESIA – WEST NATUNA WORLD CLASS DEVELOPMENTS Anoa Platform KF Platform MALAYSIA INDONESIA Major platform and pipeline project GAS LINE TRUN KLIN E 22 year contract – 325 mmscfd M ubur - Gross revenue - $8 billion Jem aja - Premier largest stakeholder – 28% SINGAPORE Early gas project - 6 months ahead of schedule Bintan Batam Main contract start-up July 2001 - On schedule Make a Difference

2000 Preliminary Results Presentation PAKISTAN Zamzama (Premier 9.4%) - Reserves over 2 tcf - Phase I production on schedule for April 2001 Qadirpur (Premier 4.75%) - Facilities upgrade on stream 2003 Zamzama early gas facilities Bhit (Premier 20%) - Reserves 1 tcf - $260m development underway - Plateau production early 2003 Make a Difference

2000 Preliminary Results Presentation UNITED KINGDOM – KYLE AND CHESTNUT AP PR OXIMA TE LY 1 2K m TO BAN F F F PS O N or th Ky le D ill C r en tr e W e ll 2 9 /2c -T Z T e e P ro te ctio n F ram e Kyle (Premier 35%) Co n tr ol Um bi lical T C on n ect ion SH UTTL E T ANK ER So u th K yle D r ill C en tr e 8 ” P ro du ctio n P ipe line - Successful completion of EWT an d Co nt ro l Umbilical V alv e Pro te ctio n F ram e W e ll 2 9 /2 c-12 Z - 540,000 barrels produced net to Premier PET RO J ARL -1 8 ” Pro du ctio n lin e B un d led - NE structure successfully appraised E le ct ro /H y drau lic Rise rs Co nt ro ls Um bilical - On schedule for 2001/1H production Ris er B ases Chestnut (Premier 30%) - Innovative deal with Brovig concluded - 100 day EWT from 2Q 2001 Make a Difference

2000 Preliminary Results Presentation EXPLORATION AND APPRAISAL WELLS IN 2000 7 SUCCESSES FROM 12 WELLS U.K. West Natuna Gajah Baru Kyle Naga Iguana Natuna Sea Pakistan Pangkah Zarghun South Sidayu Ujung Pangkah-2 Make a Difference

2000 Preliminary Results Presentation OIL AND GAS RESERVES (END 2000) Booked Reserves 488 mmboe Unbooked Reserves 114 mmboe 114 mmboe Chestnut 5 mmboe Myanmar 100 (177 mmboe) Unbooked Block A 46 mmboe Reserves 80 114 mmboe 60 Pangkah 36 mmboe 40 602 20 Zamzama 27 mmboe mmboe 0 Pakistan (61 mmboe) U.K. (45 mmboe) Indonesia (188 mmboe) Rest of World (17 mmboe) Note: working interest proved & probable basis Make a Difference

2000 Preliminary Results Presentation S TRATEGY and O UTLOOK Make a Difference

2000 Preliminary Results Presentation RESERVES GROWTH 700 Unbooked 600 Booked 500 400 mmboe 300 200 100 0 1996 1997 1998 1999 2000 Note: Working interest proved and probable basis Make a Difference

2000 Preliminary Results Presentation PORTFOLIO DELIVERY 1996 – 2000 A PORTFOLIO THAT HAS DELIVERED 1996/2000 Reserves added - Booked 346 mmboe - Unbooked 114 mmboe Yetagun Gas commercialised West Natuna Qadirpur Bhit Zamzama 50,000 – 60,000 boepd Production base for next 15 years $1.25 per boe 5 year finding costs $2.80 per boe 5 year finding and development costs Make a Difference

2000 Preliminary Results Presentation LOOKING FORWARD Focus - Realising the cashflow - Commercialising unbooked gas reserves - The alliance Targets - Indonesia - 2 nd sale from West Natuna - Gas contract from Pangkah - Pakistan - Zamzama – second gas contract - Qadirpur - increased gas sales - UK - New field production Make a Difference

2000 Preliminary Results Presentation SUMMARY Improved financial outlook Sustained higher production Gas commercialisation Delivering value for shareholders Make a Difference