Exploration Investor Presentation January 2010 Forward looking - PowerPoint PPT Presentation

Exploration Investor Presentation January 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. January 2010 | Page 1

Target and strategy Exploration is a fundamental part of Premier’s growth strategy Target • Build three quality businesses which deliver 100 kboepd from 400 mmbbls of reserves Strategy • Attain 75 kboepd from 2P reserves of 265 mmboe • Commercialise contingent resource base of 180 mmboe • Add 200 mmboe of 2P reserves from exploration • Make value-adding acquisitions in three core areas • Maintain a conservative financing plan January 2010 | Page 2

Exploration – Targets Add 200 mmboe net reserves by 2015 Global Exploration: 2009 Forecast 2C resource additions (mmboe) • Premier added 20 mmboe to 45 mmboe of net resources 400 • 5 exploration and 2 appraisal wells (excl Egypt; Success Case/NV Unrisked Success Case/NV Risked now sold) 350 Unrisked Risked • Exploration success rate: 40% Cum risked additions 300 • Finding cost: $4/boe 250 2010-2012 • Unrisked target resource: 800 mmboe 200 • Risked resource target: 100 mmboe 150 • 12 Exploration and appraisal wells planned in 2010 • Material prospects targeted 100 • Drilling candidates from existing portfolio 50 2012 to 2014 0 • Resource additions must come from success case 2009 2010 2011 2012 2013 2014 follow on and/or new ventures January 2010 | Page 3

Premier – Petroleum basin focus The majority of the worlds petroleum resources are found in 3 basin types: • Rift Basins: e.g. North Sea, SE Asia, onshore Africa and West Siberia • Passive Margins: e.g. West Africa / SE Brazil, NW Australia and the Gulf of Mexico • Fold-belts / Forelands: Columbia, Iran / Iraq and Pakistan Premier has a competitive advantage in value creating exploration of Rifts and Fold-belts / Forelands Premier will continue to explore the rift basins of SE Asia and the North Sea and will look to exploit its competitive advantages in selected rifts and fold-belt basins of Africa, the Middle East and Central Asia January 2010 | Page 4

Exploration – Historic performance Premier Discoveries 1986-2009* (net mmboe) 800 • Premier began exploring in 1986, initially via entry Annual discoveries into SE Asia Cumulative annual 700 discoveries • To date Premier has discovered net 800 mmboe at an overall commercial success rate of 22% 600 • The commercial discoveries have been made in 500 two basin types: 1) Rifts: Southeast Asia and Norway 400 2) Frontal Fold-belts: Pakistan 300 • The success rate in these basin types is ~40% • Since 2000 the exploration success has been 200 dominated by Rift Basin exploration in Asia and latterly in Norway 100 0 1985 1990 1995 2000 2005 2010 * Does not include Egypt January 2010 | Page 5

Exploration strategy The goal is to deliver 200mmboe 2P reserves through the drill bit focussing on areas where we have demonstrated skills and expertise Near-term programme • Asia: Nam Con Son Basin (Vietnam and Indonesia) • North Sea: UK Central North Sea and Norwegian North Sea New Venture Activity • Rift Basins: new acreage in the North Sea, Asia and potentially North/East Africa or Central Asia • Frontal Fold-belt plays: new acreage in the Middle East or Central Asia January 2010 | Page 6

Exploration outlook – January 2010 Unrisked net potential of 350mmboe 2010 Asia Q1 Q2 Q3 Q4 Vietnam 07/03 Seismic (contingent) 104/109-05 Seismic Indonesia Tuna Prospect A Prospect B Buton Lead B North Sea Norway PL374S (34/2,5) Blabaer Bredford Dolphin PL359 (16/1,4) Greater Luno Transocean Winner PL406 (8/3) Gardrofa Maersk Guardian PL378 Gnatcatcher PL378 Grosbeak Appraisal UK P815 Bugle Appraisal Transocean GSF Arctic IV P1430 Catcher Galaxy II (STC) P1620 Oates Middle East/Pakistan Pakistan Qadirpur Pirkoh-1 Firm Wells: Rig Contracted Firm Wells: Rig TBC Contingent Wells Seismic Programme All well timings are subject to revision for operational reasons January 2010 | Page 7

Exploration – Vietnam / Indonesia – Nam Con Son An integrated play-based approach to exploration Premier equities • 07/03: 30% and operator • Tuna: 65% and operator, target equity 40% pre-drill Prospectivity • 10-15 leads and prospects • Cá R ồ ng Đ ó discovery May 2009 (10 mmbo to 70 mmbo gross resource) • Cá R ồ ng Vang - P&A December 2009 • Resource potential 30-100 mmbo per prospect 2010 Plan • Fully interpret existing 3D • Acquire 3D over central part of Block 7/03 • Drill 2 Tuna prospects 2011 Plan • Appraise Cá R ồ ng Đ ó discovery • Drill further exploration wells in 07/03 January 2010 | Page 8

Exploration – Block 07/03 – CRD discovery and CRV Amplitude analysis of 3D is potentially the key to unlocking the prize CRV CRD / CRD North East CRD Discovery NW SE Anomalies associated Anomalies associated with Hydrocarbons with Hydrocarbons? Gas above CRD Low amplitude area due to gas in overburden January 2010 | Page 9

Exploration – Tuna – Regional prospectivity Plan to drill 2 prospects in Q3/Q4 2010 Singa / Kuda Laut Cacing Laut Gajah Laut Utara NW SE Base Muda MMU Arang Top Oil Expulsion Gabus Thermally Thermally Mature Source Mature Source Basement Numerous material drillable prospects being defined on new 3D January 2010 | Page 10

Exploration – North Sea Premier’s rift basin expertise is being applied to the North Sea • Active 2010 programme targeting 50- 200 mmboe net to Premier: Blåbaer Gnatcatcher Prospect Potential (mmboe gross) Gnatcatcher 31-60 mmboe Gardrofa 15-115 mmboe Greater Luno 30-150 mmboe Greater Luno Blåbaer 15-75 mmboe Bugle Appraisal Bugle North 7-39 mmboe Oates 25-107 mmboe Bream Gardrofa Catcher 18-33 mmboe Oates Moth/Lacewing • Preparing for 2011 drilling, e.g. Moth/Lacewing Catcher January 2010 | Page 11

Exploration – Huntington, Moth and Oates Building a new core area in the UK Central North Sea Rift basin Huntington • Premier equity in Block 22/14b is 40% • Concept selection process ongoing • First production forecast for 2012 • Unitization process underway • Exploration focus is to Pre-Tertiary potential Moth • Appraisal of Moth and potentially a deep pre- Cretaceous target (Lacewing) planned for 2011 • Premier equity ~50% (BG operator) Oates • Premier 50% equity and operator* • Oates prospect has 25 mmboe to 107 mmboe potential • Low to moderate risk * Subject to DECC approval January 2010 | Page 12

Exploration – UK – Oates Oates (P1620) NW Oates SE • Premier 50% equity and operator • Reserve estimate 25-65-107 mmboe • Amplitude supported stratigraphic trap • Low to moderate risk for oil and gas • Drilling planned late Q2/Early Q3 2010 • Follow up potential exists at Bowers (10-65 mmboe unrisked reserves) Bowers Amplitude Bloom on Far Stacks Oates Forties Isopach Map January 2010 | Page 13

Exploration – Norway – Blåbaer Blåbaer (PL374) • Premier 15% equity • Operated by BG • Reserves estimate 15-30-75 mmboe • Moderate risk for oil • Well status: drilling • Jordbaer project moving forward Blåbaer Jordbaer January 2010 | Page 14

Exploration – Norway – Greater Luno Greater Luno (Pl 359) • Premier 30% equity • Operated by Lundin • Targeting basement and possible Jurassic sandstones related to the Luno discovery (95 mmboe) on adjacent Lundin-operated block • Estimated reserve range 30-150 mmboe • Moderate risk for oil • Drilling planned for Q1 2010 Greater Luno 16/4-5 Planned Well Location January 2010 | Page 15

Exploration – Norway – Bream, Gardrofa Success at Gardrofa will lead to a new core area for Premier in Norway Bream (PL 406) • Brent age oil discovered 1971, close to Yme Field • In 2009,17/12-4 and its sidetracks wells appraised this discovery, testing 2,516 boepd • Operated by BG, Premier equity 20% • Estimated reserves 39-50-63 mmboe • Plan of development under review 9/1-1 Gardrofa Prospect Well Location Gardrofa (PL407) • Premier’s first operated licence in Norway • Premier equity 40% • Untested trap flanking a Salt dome feature • Estimated reserves 15-70-115 mmboe • Moderate risk for oil • Well planned for Q3 2010 January 2010 | Page 16

Exploration challenges 1. Access to new opportunities in themes of choice 2. Maintaining exploration focus/discipline 3. Managing the natural tension between growth ambitions and the production/development of existing resources 4. Building a geoscience organisation for the future January 2010 | Page 17

Exploration strategy The goal is to deliver 200mmboe 2P reserves through the drill bit focussing on areas where we have demonstrated skills and expertise Near-term programme • Asia: Nam Con Son Basin (Vietnam and Indonesia) • North Sea: UK Central North Sea and Norwegian North Sea New Venture Activity • Rift Basins: new acreage in the North Sea, Asia and potentially North/East Africa or Central Asia • Frontal Fold-belt plays: new acreage in the Middle East or Central Asia January 2010 | Page 18