Investor Presentation February 2013
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. j A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements. February 2013 | Page 1
Introduction to Premier Oil • Leading FTSE 250 independent E&P company, founded in 1934 • 6 key business units: UK, Norway, Pakistan, Indonesia, Vietnam and Falkland Islands • Exploration assets in Middle East and Africa • Current production of 60,000 boepd • Current production of ~60 000 boepd rising to >100,000 boepd • Over 700 mmboe of 2P reserves and 2C resources • Invest in high quality projects – Value-enhancing acquisitions – Exploration • Market cap of ~$3.2 billion (Feb 2013) • Record levels of profit-after-tax and operating cashflow in 2012 Historic NAV/share CAGR of 14.2% at constant oil prices February 2013 | Page 2
Operations update February 2013 | Page 3
North sea and Asia assets February 2013 | Page 4
Chim Sáo and Dua Chim Sáo • Chim Sáo production averaged ~29,000 boepd in 2012 • Higher level of facility uptime achieved in 2H • Water injection rates are now at 30,000 bpd, providing effective reservoir pressure support • Two well supplementary drilling programme into additional reservoirs completed in June and wells tied-in in Q3 2012 i d i i Q • Total well capacity in excess of 40,000 bopd Dua • Dua will develop ~10 mmbbls • Prime Minister approval of FDP received in August • Long lead items being procured and contracted • Development drilling to commence in April 2013 • Subsea installation and tie-in in Summer 2013 • First oil 2014 February 2013 | Page 5
Natuna Sea Block A • Gas sales from NSBA averaged 144 BBtud in 2012 – NSBA’s share of GSA1 at 44.4% against a contractual market share of 36.9% – Block A’s share of remaining reserves dedicated to GSA1 is estimated to be ~64% • Gajah Baru, which is dedicated to GSA2, is performing well with deliverability in excess of 200 BBtud • Next phase of development projects (Pelikan, Naga ������������������� ���� and Anoa Phase 4) progressing to schedule ������� ��� • Total sales capacity will increase to 400 BBtud over �� ����������� time �� �� • Discussions to sell an additional 40 BBtud into the �� Indonesian domestic market continue �� �� �� �� �� � ��� ��� ��� ��� ��� ��� ��� ��� ���� ��� ��� ��� February 2013 | Page 6
Huntington and Rochelle Huntington Rochelle • Development drilling completed in August • Subsea pipeline work is complete – To schedule and on budget • Rig is on location to conclude the horizontal section of – Better than expected well results the first of the two development wells ahead of final – Debottlenecking study underway tie-ins • FPSO arrived on location on 3 October • Operator expecting first gas in 1Q 2013 – All of the five risers have been installed – System testing and commissioning underway • First oil anticipated before end of 1Q 2013 with the field expected to produce 25 kbopd after a ramp-up period February 2013 | Page 7
Solan • Premier is Operator with 60% equity • All significant contracts have been awarded – Procurement and fabrication of platform (Burntisland Fabrications) – Heavy lift installation (Heerema) – Subsea tank fabrication (Dry Docks World Dubai) – Drilling rig (Awilco) • Construction of topsides has commenced • Phase 1 development drilling to commence in April 2013 • First oil targeted for Q4 2014 with an initial production rate of • First oil targeted for Q4 2014 with an initial production rate of 24,000 bopd FEED 2012 2013 2014 Design and Procurement ������������������� ��������� Construction Platform T ank Drilling Installation, Hook-up and Commissioning February 2013 | Page 8
Catcher update • Premier is operator with 50% equity • Development concept agreed among partners in December 2012 • Tender processes with FPSO providers and for the subsea facilities FEED are underway • Reservoir modelling being updated to optimise subsurface development requirements subsurface development requirements • Design phase expected to be completed in FPSO and Subsea Wells mid-2013 with submission of the FDP to thereafter • First oil modelled for early 2016, subject to FPSO contractor discussions February 2013 | Page 9
Sea Lion Transaction details • Farm-in for 60% of Rockhopper’s interests in the Falklands completed in October 2012 • Initial payment of $231 million plus an exploration and development carry of up to $48 million and $722 million, respectively • Fully funded from existing cash, facilities and cash flow; commitment to fund dividend unchanged Development plan • FPSO in 450m water depth; tanker offloading • Associated gas used as fuel or re-injected • 22 producers, 13 water injectors and a gas injector, drilled from 3 subsea centres • Insulated flowlines and risers • HSPs for artificial lift and flow assurance Targeted schedule • Gross plateau rate of 80-85 kbopd • Concept Selection in Q2 2013 • Capex to first oil of ~$3 billion (purchased FPSO) • Project Sanction in mid 2014 • Subsequent development of satellite fields • First Oil in Q3 2017 February 2013 | Page 10
Fully funded programme Development Funding Investment Profile Development capex (US$ million) (US$ million) • Dividend, exploration 1800 1800 Acquisitions / disposals Sea Lion and all existing projects Exploration expenditure Existing Assets 1600 1600 Development Capex are fully funded at * $85/bbl 1400 1400 * 1200 1200 • Capacity to increase spend on exploration spend on exploration 1000 1000 1000 1000 and new development 800 800 projects at higher oil prices 600 600 400 400 • Forward profile funded by cash flow and 200 200 facilities even at $65/bbl 0 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Note: Assumes exploration expenditure of $250 mm pa *Assumes standby funding is taken up by Rockhopper. from 2014. Purchased FPSO case. February 2013 | Page 11
Exploration update February 2013 | Page 12
Exploration 2012 and vision 2012 • Success at Carnaby in the Catcher area, Anoa Deep on Natuna Sea Block A and K-30 and Badhra B North-1 in Pakistan • Unrisked prospective resource portfolio increased to 2,524 mmboe (484 mmboe risked)* – Increased lead and prospect inventory in the Falklands, Iraq, Vietnam and the North Sea Vision • Targeting known geologies (Rift or Frontal fold belts) in existing T i k l i (Rif F l f ld b l ) i i i or new areas – Focus on play opening opportunities with significant follow on potential Portfolio increased by – Drill out high impact prospects ~ 1 billion boe to • Building on $2.7 billion of NPV from Premier discoveries 2,524 billion boe (net, unrisked) (since 2005)** during 2012 * Excludes PL23 and PL24 in the Falkland Islands ** DeGoyler & MacNaughton estimate February 2013 | Page 13
Transforming the exploration portfolio February 2013 | Page 14
Asia Plays to be accelerated • Anoa Deep success in 2012 Phu Khanh Basin – Play opener Block 121 – More than 4 wells planned 2014/15 ��������� • Block 121 12W 07/03 – Play opener, high risk Ca Voi Block A Aceh prospect to be drilled in 1H 2013 t t b d ill d i 1H 2013 Tuna ��������� NSBA High impact prospect inventory • Matang currently drilling • Kuda Laut and Singa Laut to be drilled in 2H 2013 • Ca Duc to be drilled in 1H 2013 February 2013 | Page 15
Anoa Deep success Anoa Deep (Natuna Sea Block A) Anoa North • Premier 28.67% equity and Operator • Drilled as an exploration tail to the WL-5 development well • Encountered ~300 feet of fractured Lama WL Sandstones Anoa Deep Discovery • Lama formation tested and flowed gas Top Lama Depth – 17 mmscf/d through a 48/64 inch choke 17 f/d h h 48/64 i h h k C.I.=100 feet 1 Km – Estimated total gas in place of 70-100-150 bcf 3km • The well will be tied-in to the Anoa facility • Significant follow-on potential – Gross accessible prospective resource ~2TCF ����� ��� �� ���� – Exploration drilling in 2014/2015 ������� ��� ������� ����� ����� ������� February 2013 | Page 16
Vietnam Block 121 – play opening well Ca Voi (Whale) prospect (Vietnam Block 121*) • The Ca Voi prospect is the first test of the Oligocene play in the Phu Khanh Basin • High risk well (a true frontier wildcat) with multiple follow-up potential • Risk assessment: high (a true frontier wildcat) • Gross prospective resource assessment: 40-100-200 mmbo p p • Well planned for 1H 2013 • Significant follow on potential * Block 121 - Premier 40% equity (Government approval pending) February 2013 | Page 17
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