2010 Half Yearly Results Presentation 26 August 2010
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. 26 August 2010 | Page 1
Agenda Progress against strategy Simon Lockett Financial results Tony Durrant Exploration update Andrew Lodge Operations update Neil Hawkings Summary Simon Lockett 26 August 2010 | Page 2
Progress towards 75,000 boepd Huntington Field development plan submitted Chim Sáo Development drilling under way Gajah Baru Wellhead platform jacket built and in place 26 August 2010 | Page 3
Delivering Asian projects to meet growing demand 26 August 2010 | Page 4
Progress on the portfolio of development projects Solan Bream Project sanction by end 2010 Evaluating tender responses Frøy Tender process under way North Pelikan, Sumatra Naga Block A Concept Progress selection towards completed PSC extension Dua Concept selection completed 26 August 2010 | Page 5
Progress towards 200mmboe of discoveries Catcher Main and Catcher East 60-100mmboe (gross) Blåbaer 15-75mmbo (gross) Catcher Exploration >150 mmboe (gross) potential remaining 26 August 2010 | Page 6
Progress on acquisition / new ventures West Orkney Basin, Solan & 15/26c South Darag 26 August 2010 | Page 7
Half yearly financial results 26 August 2010 | Page 8
Production and pricing 6 months to 6 months to 30 Jun 2010 30 Jun 2009 Highlights Working Interest Production (kboepd) 46.6 39.7 Full-year 2010 guidance unchanged at around 44,000 boepd Entitlement Interest Production (kboepd) 42.6 37.0 Realised oil price ($/bbl) 78.1 53.0 Average Brent oil price was $77.3/bbl (H1 2009: $52.0/bbl) Realised gas price ($/mcf) 5.8 5.0 Average gas pricing ($/mcf) H1 2010 H1 2009 Singapore 13.8 8.9 Pakistan 3.3 3.7 Commodity price comparison $/mmbtu 30 Henry Hub 25 West Natuna 20 15 10 5 0 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 26 August 2010 | Page 9
Income statement 6 months to 6 months to 30 Jun 2009 Prior year comparatives are restated for 30 Jun 2010 acquisition fair value adjustments made $m $m in the 2009 year-end accounts Sales and other operating revenues 367 213 Cost of sales (189) (116) Operating costs per barrel ($/bbl) H1 2010 FY 2009 Gross profit 178 97 UK $24.7 $23.2 Excess of fair value over purchase consideration - 6 Indonesia $7.1 $10.0 Exploration/New Business (46) (25) Pakistan $1.6 $1.9 General and administration costs (8) (7) Group $12.9 $12.2 Operating profit 124 71 Financial Items (12) (52) Includes $20.5 million credit from mark to market revaluation of hedges Profit before taxation 112 19 Estimated UK tax allowances/losses of Taxation (50) (46) $1.05billion outstanding at 30 June 2010 Profit/(loss) after tax 62 (27) 26 August 2010 | Page 10
Cash flow 6 months to 6 months to 30 Jun 2010 30 Jun 2009 $m $m Estimated Capex split ($m) Cash flow from operations 273 142 H1 2010 H1 2009 Taxation (51) (29) Development 142 69 Operating cash flow 222 113 Exploration 70 42 Capital expenditure (212) (111) 212 111 (Acquisitions)/disposals 20 (511) Estimated H1 2010 Regional split ($m) Finance charges (27) (18) Operating Pre-licence expenditure (11) (7) cash flow Capex Asia 49 118 Net cash flow (8) (534) MEP 29 14 North Sea 144 80 222 212 26 August 2010 | Page 11
Net debt and financial strength Movement in net debt 6 months to Balance sheet At 30 Jun 2010 June 2010 $m $m (316) Opening net debt Cash and cash equivalents* 449 (8) Net cash out flow Bank borrowings (569) (12) Purchase of shares Convertible loan (216) (336) Closing net debt* Net debt* (336) * Excludes $65m of cash in escrow for abandonment obligations Current outlook • Cash $449 million, undrawn facilities $404 million • Forecast 2010 full year spend of $430 million (development) and $170 million (exploration) • At current prices net debt is expected to peak at around $700 million in mid-2011 26 August 2010 | Page 12
Exploration update 26 August 2010 | Page 13
Year to date exploration highlights Exploration and appraisal drilling Global exploration: Forecast resource additions (mmboe) • Nine wells drilled, four successful 250 • Discoveries at Catcher, Catcher East Target cumulative risked additions Actual cumulative risked additions and Blåbaer 200 • Net estimated resource additions >30mmbo 150 New ventures • New acreage awarded in West Orkney, 100 UK and South Darag, Egypt • 11 applications in the UK 26 th 50 Licensing Round • Farmed into UK Block 15/26c (West 0 2009 2010 2011 2012 2013 2014 Rochelle) 26 August 2010 | Page 14
Exploration – UK – Oates Oates (P1620) • Premier 50% equity and operator • Well plugged and abandoned • Pre-drill risk was trap integrity • Post-drill analysis ongoing – Focus on cause of amplitude response Oates – Lessons learned will be captured and applied – Post drill analysis will be completed within 60 days of P&A NW Oates SE Bowers Oates Amplitude Bloom on Far Stacks Forties Isopach Map 26 August 2010 | Page 15
Exploration – UK – Catcher Catcher (P1430) • Premier equity 35% • 30 ° API oil discovery in high quality sands • Catcher Main and Catcher East discoveries • Catcher Main appraised by Catcher SW • Gross reserve estimate: 60-85-100 mmbo Catcher W E W Varadero Catcher North Prospect Catcher Main Catcher East Prospect Catcher Main Catcher East Depth Map on Top Reservoir 1 Km 2 Km 26 August 2010 | Page 16
Exploration – UK – 28/9 exploration potential Rapide Varadero Catcher UK 28/9 (P1430) 40 mmbo North • Premier equity 35% • Overall block potential >300 mmbo recoverable • Low risk, seismic amplitude support • Three exploration wells are planned Q4 2010 Cougar Catcher East Eocene – Tay Amplitudes Catcher North Burgman Catcher - Main Varadero 45 mmbo Carnaby Catcher 65mmbo East Bonneville Catcher - Main Discovery Carnaby Burgman 26 August 2010 | Page 17 26 August 2010 | Page 17
Exploration outlook Unrisked net potential new barrels over next 12 months of 300 mmboe 2010 2011 Asia Q3 Q4 Q1 Q2 Q3 Vietnam 07/03 Seismic Geowave Voyager CRD Appraisal Exploration well 104/109-05 Seismic Viking II Exploration well Indonesia Tuna Gajah Laut Utara Ocean General Belut Laut Ocean General Buton Benteng Natuna Sea Block A Anoa Deep West Callisto Biaawak Besar West Callisto North Sea Norway PL406 (8/3) Gardrofa Firm Wells: Songa Delta PL378 Gnatcatcher Rig Contracted PL378 Grosbeak Appraisal Songa Delta Firm Wells: UK P1430 Catcher Rig TBC P1466 Bluebell Contingent Wells P1298 West Rochelle Transocean Prospect Seismic Middle East - Pakistan Programme All well timings are Pakistan Kadanwari K25, K18ST, K28 Weatherford 812 subject to revision for Bhit/Badhra Appraisal operational reasons 2010 full year expenditure $170million pre-tax 26 August 2010 | Page 18
Exploration – UK – West Rochelle West Rochelle (P1298 & P1615) • Premier equity 50% P1298 (15/26b), 25% P1615 (15/26c) • Farmed into 15/26c to test western extension of the Rochelle discovery along the Kopervik pinchout margin • Potential gross reserves: 15-25-30 mmboe West Rochelle • Well spudding – end August 2010 West Rochelle S N P1615 (15/26c) Lista Andrew Sst West Rochelle well Top Chalk Plenus Marl Top Kopervik Base Kopervik BCU P1298 (15/26b) Rochelle Base Zechstein 26 August 2010 | Page 19
Exploration – Norway – Grosbeak, Gnatcatcher Gnatcatcher/Grosbeak (PL378) • Premier 20% equity (non-operated) • Successful Grosbeak well completed in July 2009 – Close to nearby infrastructure – Oil in Middle Jurassic sandstones – Estimated reserves 35-80-190 mmboe • Gnatcatcher resource estimate 31-40-60 mmboe • Moderate to high risk for oil • Q4 2010 Gnatcatcher exploration well and Q1 2011 Grosbeak appraisal Gnatcatcher SW NE 26 August 2010 | Page 20 26 August 2010 | Page 20
Appraisal – Vietnam – Block 07/03 – Cá R ồ ng Đ ỏ Cá R ồ ng Đ ỏ • Premier 30% equity, reserves estimate 10-60-80 mmbo gross resource • Appraisal well planned for Q1 2011 CRV CRD / CRD North East CRD Discovery NW SE Anomalies associated Anomalies associated with Hydrocarbons with Hydrocarbons? Gas above CRD 26 August 2010 | Page 21
Exploration – Vietnam – Block 07/03 2011 exploration well (Block 07/03) • Premier 30% equity • Two potential drilling candidates identified on existing 3D, new 3D dataset available in Q1 2011 • Reserves estimate 10-45-70 mmbo • Targeting multiple stacked Tertiary reservoirs; moderate risk for oil • One exploration well planned for Q3 2011 26 August 2010 | Page 22
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