a Capital injection and strategic alliance with and A new Premier with stronger finances and competitive A new Premier with stronger finances and competitive advantage in Asia advantage in Asia A primary investment vehicle for A primary investment vehicle for PETRONAS and Amerada Hess in Asia PETRONAS and Amerada Hess in Asia
P RESENTATION T EAM Sir David John Charles Jamieson Chairman Chief Executive Officer Tan Sri Dato’ Mohd Hassan Marican Sam Laidlaw President & Chief President & Chief Executive Officer Operating Officer a
T RANSACTION S UMMARY � Premier to become a primary investment vehicle for PETRONAS and Amerada Hess in Asia � PETRONAS and Amerada Hess to become 25% shareholders through injection of £136m of cash via a combination of new voting and non-voting shares � Subscription for new equity at 25 pence per share � Appointment of two non-executive Directors from PETRONAS; Amerada Hess to retain two non- executive Directors � Unanimously recommended by the Board of Premier a
R ATIONALE FOR THE T RANSACTION � Strengthens Premier’s balance sheet in optimal manner enables retention of key assets � enables financial challenges to be overcome � � Introduces PETRONAS as a key strategic partner the partner of choice in Asia � builds on existing Yetagun relationship � � Reinforces Amerada Hess relationship and highlights their long term commitment to Premier’s Asian gas strategy and growth potential a
P REMIUM P AID F OR S TRATEGIC S TAKE 6 month share price 28 � 30% premium to yesterday’s closing 26 Subscription price share price 24 � 27% premium to share price on day 22 before Interims and announcement of 20 discussions 18 16 14 12 10 APR MAY JUN JUL AUG SEP Source: DATASTREAM a
C ORPORATE G OVERNANCE AND M ANAGEMENT � Majority of Directors will be independent from major shareholders � A Consultative Committee will maximise opportunities for synergies (four Premier, two PETRONAS, two Amerada Hess) � An Operations Director will be appointed � Two PETRONAS non-executive Directors will be appointed a
B ACKGROUND � Declared Asian gas focus � Proven track record of finding and developing world class gas projects in Asia at low cost � Reserve growth of 500% over 5 years � Cashflows are low compared to capex requirements � Financial capability prevents development of full potential of current business and new projects � Challenge identified and several options reviewed to address it: strategic investor route preferred a
B ALANCE S HEET S TRENGTH AND F LEXIBILITY 600 300 Interims Gearing (net debt/net assets) (%) Proforma 205% 399m 400 200 £ million 263m Covenant 122 105% 200 100 80% 37% 0 0 Net Debt Gearing Lender Gearing Funding gap solved Funding gap solved a
T HE F IT OF P REMIER AND P ETRONAS Existing trust, dialogue and relationships Existing trust, dialogue and relationships � Builds on existing relationship � Secures support of leading NOC in region of focus � strong relationships and influence � infrastructure and downstream skills � transfer of skills � strong financial standing gas project synergies � The ideal partner The ideal partner a
T HE P ETRONAS P ERSPECTIVE Existing trust, dialogue and relationships Existing trust, dialogue and relationships � Establish new vehicle to develop Asian gas business � Allies PETRONAS with Premier’s successful Asian growth existing projects � � proven track record of creating projects � entrepreneurial skills � Partnership built on trust and existing co-operation The ideal vehicle The ideal vehicle a
T HE A MERADA H ESS P ERSPECTIVE Existing relationship cemented Existing relationship cemented � Strong reserves growth to-date � Alliance with PETRONAS ensures momentum of growth continues � Wider influence in the ASEAN region � Operational overlap An enhanced investment proposition for all shareholders An enhanced investment proposition for all shareholders including Amerada Hess with increased competitive including Amerada Hess with increased competitive advantage in Asia advantage in Asia a
T HE A LLIANCE T ODAY � � New funding New funding � � Platform for growth in Asia Platform for growth in Asia � � Consultative group established to capitalise Consultative group established to capitalise on synergies on synergies T HE A LLIANCE V ISION Creation of a new high growth investment Creation of a new high growth investment vehicle for Asian Gas vehicle for Asian Gas � � Exploitation of major operating synergies Exploitation of major operating synergies � � Organic growth Organic growth � � Selective asset acquisitions to create the Selective asset acquisitions to create the leading independent in Asia leading independent in Asia a
A LLIANCE A SSETS IN A SIA � Spread of assets provides potential to create the dominant position in Asia Premier assets Amerada assets Petronas assets a
T HAILAND O VERLAPS Myanmar � Thai gas market is in YANGON early stages of Thailand privatisation � Indigenous natural gas Wang Noi M10 will be used with M12 M13 BANGKOK Yetagun Ratchaburi imported gas from Malaysia and Myanmar Rayong Mergui � The Alliance is Andaman Sea positioned to capitalise Gulf of Thailand on its assets Khanom Surat Thani Alliance interests Pailin PHUKET Gas fields JDA Proposed pipeline Existing pipeline a
P AKISTAN I NFLUENCE � Premier is in most of the existing and future gas Zarghun developments Discovery Islamabad Pakistan � PETRONAS are Quetta Bolan already Lahore established in Dadhar Pakistan Zamzama Qadirpur Discovery Ghauspur � The existing and Sukkur KNS Kadanwari new gas pipeline Kirthar Dadu networks will Dumbar Karachi Premier interests lead in time to Gas fields the import of gas from the Middle Bhit Field Badhra East Discovery a
I NDONESIAN S YNERGY THAILAND South China Sea Lawit Jerneh Semangkok Tapis � Guntong First gas export to Anoa Penang Kakap Duyong Sotong Singapore from PENINSULAR PREMIER Kerteh atuna Gas Trunkline MALAYSIA S t r Premier’s West Natuna a i t o Natuna Sea f M a l a c Kuala Lumpur c assets underway re N a Singapo Anambas Isls. � Potential second gas Dumai Johor Baru export to Malaysia from SINGAPORE West Natuna under Lingga Isl. discussion SUMATRA Singkep Isl. � New export of gas to Jambi Singapore from Amerada Banka acreage in Sumatra now Palembang agreed Mentawai Isls � ASEAN gas grid now becoming a reality Panjang Jakarta t i a r S t 0 100 Km a d n u S JAVA a
S UMMARY OF THE D EAL A new and stronger Premier with competitive advantage in Asia A primary investment vehicle for PETRONAS and Amerada Hess in Asia � Clear synergies with PETRONAS and Amerada � Greater regional influence � Stronger finances � Access to infrastructure and downstream skills � Platform for creation of the leading independent in Asia Adding value for all shareholders Adding value for all shareholders a
A LLIANCE V ISION IN A SIA � Major Asian gas player working in deregulated markets � Inter country infrastructure operator � Identifier and marketer of new gas reserves Premier assets Amerada assets Petronas assets a
A LLIANCE V ISION IN A SIA Premier assets Amerada assets Petronas assets a
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