Investor Presentation August 2012
Over the last 6 years … Over the period, NAV/share CAGR of 14.2% excluding oil price effects August 2012 | Page 1
Premier today... ... is in the strongest position in its history • Clear path to 100,000 boepd from existing projects • >1.5 billion of prospective resources in the exploration portfolio • Fully funded programme with Evaluate Drill Appraise strong and rising cash flows LEADS PROSPECTS MATURE PROSPECTS Asia • Proven capability to deliver across the portfolio North Sea Pre- Development MEAP Project Appraisal Extension Approval Gate Gate Drill Decision Gate Acquire Licence Gate August 2012 | Page 2
Acquisition of 60% of Rockhopper’s licence interests in the Falkland Islands • Premier to farm- in for 60% of Rockhopper’s interests in Pro-forma 2P Reserves and 2C Contingent Resources (mmboe) the Falklands, including the Sea Lion development 800 – Progresses strategy of growth through investment in high quality projects 600 – Leverages strong operatorship and FPSO 400 development capabilities 200 – Ongoing exploration opportunities in the North Falklands basin 0 2P Reserves 2C 2P Reserves Falkland Pro-forma 2P – Adds approximately 200 mmbbls of net discovered Contingent & 2C Islands Reserves & 2C Resources Contingent Farm-in Contingent Resources Resources 2C resources at a low upfront cost, together with net risked prospective resources of 175 mmboe Pro-forma 2P Reserves and 2C Contingent Resources Split by Region – Significantly extends Premier’s production growth beyond current development projects & is an Falkland Islands North Sea excellent fit with strongly rising cash flows 28% 31% • Initial payment of $231 million plus an exploration carry Total of up to $48 million and, subject to FDP approval, a ~725 development carry of $722 million mmboe • Fully funded from a combination of existing cash resources, facilities and cash flow from operations; Pakistan & Mauritania Asia 9% 32% commitment to fund dividend unchanged August 2012 | Page 3
Operations update August 2012 | Page 4
North sea and Asia assets August 2012 | Page 5
Operations highlights • Chim Sáo and Gajah Baru onstream – Deliverability exceeding expectations • Realising further value from producing assets • Continued progress on the development portfolio: – Huntington and Rochelle progressing – Solan FDP approved by DECC – Development studies for Catcher well-advanced – Partner sanction of Pelikan, Naga & Dua • On track to reach 75,000 boepd run rate by year end 2012, once Huntington and Rochelle onstream • Anticipate reaching 100,000 boepd when Catcher comes onstream in 2015 August 2012 | Page 6
Block A – strong production performance Anoa & GSA1 • Producing at current maximum capacity – 170-180 BBtud • Phase 4 expansion project underway – Raising capacity to 200 BBtud • Pelikan will add 70 BBtud of capacity Gajah Baru & GSA2/3/4 • Currently producing at 60-90 BBtud • DCQ increases from 50 to 90 BBtud at end Q1 – 200 BBtud well deliverability • Indonesia will take an additional 40 BBtud when the domestic swap agreement is signed Outlook • Series of new field developments will maintain rates • Exploration is adding additional reserves Natuna ‘A’ 2015 August 2012 | Page 7
Singapore Gas Market – sales are increasing Singapore demand for gas will increase • Existing pipeline supplies are naturally declining • LNG supplies must commence and increase • But supply diversity will be maintained, and be underpinned by 90% Take or Pay contracts • GSA1 demand expected to remain between DCQ and Max Rate (341-392 BBtud) Premier’s GSA1 market share is increasing • Block A contractual market share of GSA1 is 37% – 2012 1H Block A actual share of deliveries was 45% – Block A share of remaining reserves dedicated to GSA1 has increased to 59% – Other GSA 1 suppliers are expected to drop to 150-100 BBtud in 2015-2016 • GSA 1 market available to Block A could increase to 200-250 BBtud in 2015-2016 August 2012 | Page 8
Chim Sáo – delivered and ramping up • First oil achieved, safely and on budget, in October 2011 • Post- commissioning facilities issues largely resolved – Average production for 1H 2012 was 26 kboepd • Currently producing around 30,000 bopd of oil and 5,000 boepd of gas – Rates limited due to water injection delays – 9 production wells could reach 40,000 bopd – Vessel capacity is 50,000 bopd • Supplementary drilling programme, which was initiated to develop additional reservoirs, completed – Two wells being tied into Chim Sao facility and expected onstream 2H 2012 – Jack up rig moved to drill the Chim Sao North West appraisal well, which has now spudded • MDS5/6 reserves have increased by 10 mmbo August 2012 | Page 9
Chim Sáo – uncovering upside potential Chim Sáo North West Far Closure • Chim Sáo North West discovered in August 2011 Near Closure • Additional gross resource estimate 13 to 20 mmbo • Near vertical appraisal well spudded July 2012 Chim Sáo • Development will be via existing facilities Additional Reservoirs West Closure • Further reserves potential is being 3060mss found in reservoirs other than MDS5/6 2000m Tie-in of Dua • Government of Vietnam approved ODP in December 2011 • Project sanctioned by Premier and Santos in April 2012 • Long lead items being purchased • First oil 2014 August 2012 | Page 10
Huntington and Rochelle – progressing to first oil Huntington Rochelle • Successful development drilling campaign • Rochelle area agreement executed May 2011 • Phase 1 sub-sea installation completed • Approval of FDP for East and West Rochelle in 2011 • CATS gas transportation agreement signed and • Scott platform modifications underway shuttle tanker contract awarded • Upgrade of the Voyageur FPSO proceeding • Subsea installation to commence imminently • Operator is expecting first oil in Q4 2012 • First gas expected in November 2012 August 2012 | Page 11
Solan – FDP approved by DECC • Premier is Operator with 60% equity • Development Concept: – Subsea wells and storage tank – Processing deck on a conventional jacket – Reserves estimate ~ 40 mmbo – Initial rate of 24,000 bopd – Capex of ~$850 mm with $30 mm/year opex • Premier will provide Chrysaor with a $50 million carry and corporate loan for the balance of their equity – Loan recovered through Chrysaor’s cash flow • Solan will qualify for new “Small Fields Allowance” • DECC approval of Solan FDP received in April • Contracts for the topside facilities, steel jacket, heavy lift installation & subsea tank fabrication have been awarded • Rig contract executed with Phase 1 development drilling expected to commence in March 2013 • First oil targeted for 4Q 2014 August 2012 | Page 12
Catcher Area – selecting a development concept • Further 2011 drilling resulted in: FPSO and Subsea Wells – STOIIP estimates of ~260-290 MMSTB – Reserves estimates of 80-130 MMSTB – Production rate of 50-70,000 bopd • EnCore acquisition has completed – Premier in place as Operator with 50% equity • Conceptual Engineering studies completed – Capex estimates range from $1.6bn for a leased FPSO to $2.8bn for a central fixed platform – JV concept selection process is underway CPP, Bridge-linked WHP and Subsea Wells • Development focused on eastern discoveries while the Carnaby well will contribute as a future tie-back option • New “Small Fields Allowance” will apply to separate accumulations on block • Announced ownership changes provide additional financial certainty around the funding of the development • Targeting sanction by year-end with first oil in 2015 August 2012 | Page 13
Production and capex outlook Production outlook Development capex (boepd) (US$ million) 160,000 1600 140,000 1400 120,000 1200 100,000 1000 80,000 800 60,000 600 40,000 400 20,000 200 0 0 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 At $100/bbl, expect post tax cash flow of ~$2 billion in 2015 August 2012 | Page 14
Production and capex outlook post farm-in Production outlook Development capex (boepd) (US$ million) 160,000 1600 * Sea Lion * 140,000 1400 Existing assets 120,000 1200 100,000 1000 80,000 800 60,000 600 40,000 400 20,000 200 0 0 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 *Assumes standby funding is taken up by Rockhopper. Purchased FPSO case Significant increase in free cash flow post Sea Lion first oil August 2012 | Page 15
Exploration update August 2012 | Page 16
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