Forward looking statements

Transcription

1 2007 Interim Results Presentation 20th September 2007

2 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. Page Interim Results Presentation

3 Highlights Page Interim Results Presentation

4 Highlights Rising production profile on track to meet targets 1H production up 5% from 2H 2006 with current run rate of 37,000 boepd 50,000 boepd by end 2010 and rising Daily Production (boepd) All projects earlier All projects later Base producing fields Steady progress in defining development projects Zamzama Phase 2 startup Progress on Gas sales in Indonesia Engineering & project planning progressing in Vietnam, Indonesia & Norway Completion of acquisitions in UK and Indonesia 42 mmboe of reserves and resources added at ~$2.0/bbl Scott acquisition will have one year payback Continuing to build high impact exploration pipeline Testing in India Anne well to spud in September 2007 Norway, Congo and Vietnam wells planned for 2008 and 2009 Page Interim Results Presentation

5 Regional strategies Asia Optimise Natuna Sea position Build new core areas in Vietnam and North Sumatra Fully exploit exploration play in Vietnam Middle East / Pakistan Continuing growth in Pakistan gas business Seeking new exploration plays in Pakistan Progressing new JV in the region North Sea Add to existing producing fields Exploit Norwegian development projects Pursue high impact exploration West Africa Pursue high impact exploration in Congo and elsewhere Exit Mauritanian position Page Interim Results Presentation

6 Exploration strategy Drill up programme of high impact new plays (Congo) Fully exploit plays as follow-ons to success (Vietnam) Maintain focus on new areas for future drilling (Eastern Indonesia, Barents Sea) Through commercial activity, ensure operating cash flow more than twice covers exploration spend Page Interim Results Presentation

7 Financial results Page Interim Results Presentation

8 Financial performance Operating profit Reduced by exploration writedown and non-cash charges Operating cashflow before working capital Strong underlying cashflows driven by rising production and high prices Operating costs Underlying costs stable at $6.90/bbl (including certain one-off items) Balance sheet Maintained balance sheet strength pre-funding investment programme Page Interim Results Presentation

9 Production North Sea Wytch Farm Scott Kyle Others Asia Anoa Kakap Pakistan Qadirpur Bhit Zamzama Kadanwari West Africa Chinguetti kboepd (net) 1H kboepd (net) FY Total production Page Interim Results Presentation

10 Scott acquisition Scott Economics Pre-emption purchase price $60m Adjusted final price (including inventory of $26m) $53m After-tax cash flow (May 19th-August 31st) $38m Company Scott Field Before After Anticipate cash pay-back within 12 months of acquisition Premier Nexen 1.79% 40.99% 21.84% 41.89% Further in-fill drilling opportunities Petro-Canada Hess 20.64% 20.95% 20.64% 0.00% Expected field life 2020 ExxonMobil 10.47% 10.47% Maersk 5.16% 5.16% Page Interim Results Presentation

11 Production and income statement Working Interest Production (mboepd) Realised oil price ($/bbl) Realised gas price ($/mcf) 6 months to 30 June months to 31 Dec months to 30 June Highlights 3% premium to Brent oil prices Sales and other operating revenues Cost of sales Gross profit Exploration/New Business General and administration costs Operating profit Financial Items Profit before taxation Taxation Profit after tax Profit/loss from discontinued operations Profit for the period $m (114.4) (34.4) (7.8) 82.8 (14.3) 68.5 (48.0) $m (126.6) (37.1) (16.6) (5.7) (86.7) (18.5) $m (65.6) (13.8) (8.0) (18.5) 90.3 (53.7) 36.6 (2.9) 33.7 Including Guinea Bissau writeoff of $25.7 million Non cash mark to market hedging loss of $9.9m 50% effective rate on profits preexploration writeoff Mauritanian assets maintained at fair value estimate of $83.5m Page Interim Results Presentation

12 Cashflow 6 months to 30 June months to 31 Dec months to 30 June 2006 $m $m $m Operating cash flow Before working capital movements Working capital movements Taxation paid (22.3) (34.3) 58.2 (116.2) 76.9 (50.0) Cargo proceeds of $42.0m received on 3 July Net cash from operating activities Expenditures ($m) Capital expenditure (188.5) (156.5) (95.9) Pre licence exploration costs (7.9) (19.2) (6.8) Exploration Net cash flow before financing (109.7) Development Acquisitions Page Interim Results Presentation

13 Balance sheet As at 30 Jun 2007 As at 31 Dec 2006 As at 30 Jun 2006 $m $m $m Cash and equivalents Invested at an average 5.28% Bank debt (68.0) - - Convertible Bonds Net (debt)/cash (196.9) (24.1) $250 million issue in May at 2.875% coupon, $51.9 million attributed to equity reserve Net assets Balance sheet gearing 4.6% - - Undrawn facilities Page Interim Results Presentation

14 Development update Page Interim Results Presentation

15 Middle East Pakistan Producing fields The historical picture of reliable production growth looks set to continue: Zamzama Phase-2 first production is imminent Incremental 150 mmscfd of production capacity On time and on budget Badhra first production at year end Initial development of 30 mmscfd Qadirpur capacity expansion in April 2008 Plant capacity increasing from 500 to 600 mmscfd Qadirpur Power Generation Project in 2009 Further 70 mmscfd of gas to a new power station Further potential projects exist with Badhra extension and Qadirpur Deep Pakistan Production Graph (boepd net) Further potential Development projects Producing fields (including development drilling) Page Interim Results Presentation

16 Other key producing fields Scott In 2006/7 a successful infill drilling campaign reinvigorated production Production increased from 18 to 35 kboepd gross Added 11 mmbbls reserves at $10/barrel After further study work a new campaign is being planned for late 2008/9 Upgrades to power generation and water injection will increase production Kyle Completion of the gas lift project has significantly increased production Page Interim Results Presentation

17 Asia Vietnam Blackbird / Dua First production targeted for 2010 but 2009 may be possible Market survey of FPSOs completed Development team in place in Ho Chi Minh Reservoir studies and development cost estimating are ongoing Gas options under review 2007 Q4 Q Q2 Q Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 RAR FDP First Production PV Approvals FPSO Specify Tender Convert Install Wellhead Platforms Specify Tender EPCI - Blackbird Install - Blackbird EPCI Dua Drilling Drill Blackbird Wells Tieback Blackbird Wells Drill Dua Wells Page Interim Results Presentation

18 Asia Indonesia West Natuna Block A GSA 2 Confident of Indonesian ministerial approval to export gas A further expansion of the Jurong Petrochemical complex has been announced Evaluating the possibility of an offer from Sembgas (GSA1 Buyer) as an additional buyer to ExxonMobil Development planning continues Pre-FEED work is ongoing First production target of Q Page Interim Results Presentation

19 Asia Indonesia North Sumatra Block A Targeting POD approval at end of October Gas sales negotiations with PIM (fertilizer manufacturer) are progressing POD has been submitted to BPMigas for review Tendering process for FEED is underway First production targeted for Q Early production project of 15 mmscfd to an IPP for late 2009 Study work on re-development of the old oil fields has commenced Page Interim Results Presentation

20 North Sea Norway Frøy Development concept has been selected Jack-Up with Drilling, Production, Storage & Offtake Either a converted rig or a purpose built jack-up Installation in autumn 2010 or 2011 First production will be three months later EPCIC contract has been tendered 5 potential bidders with responses due in October Facility will be leased Expecting POD submission in Q Page Interim Results Presentation

21 Field developments schedule Pakistan Blackbird / Dua WNBA GSA-2 NSBA Frøy Ratna Operated Non-operated Project Initiation Study Design Execute Concept Selection Project Sanction First Production NB: Projects are shown at earlier case start dates, for later case dates add one year Page Interim Results Presentation

22 Production forecast Quarterly Production (boepd) All projects earlier All projects later Base producing fields Q Q Q Q Q Q Q Q Q Q Q Field Blackbird/Dua WNBA GSA2 NSBA Frøy Net rates (boepd) 8,000 6,000 10,000 15,000 Page Interim Results Presentation

23 Exploration update Page Interim Results Presentation

24 North Sea Page Interim Results Presentation

25 North Sea Norway PL407 Bream 10km PL407 Bream Appraisal Undeveloped Brent age oil field discovered 1971 First well planned 2008 Operator estimate of 80 mmbbls Premier 20% equity share PL406 Bream Exploration Yme Field Re-development Gardrofa prospect Page Interim Results Presentation

26 North Sea UK 23/22b Sparrow Prospect NW SE Lomond field Page Interim Results Presentation

27 West Africa Page Interim Results Presentation

28 West Africa Guinea Bissau Page Interim Results Presentation

29 West Africa Guinea Bissau Espinafre Map Page Interim Results Presentation

30 West Africa Guinea Bissau Espinafre interpretation Pre-drill Post-drill Page Interim Results Presentation

31 West Africa Guinea Bissau Eirozes map Page Interim Results Presentation Tied to Sinapa-2

32 West Africa Gabon Themis Admiral-1 Themis Marin PSC Premier 18% Rig contracted for 4Q 2007 Admiral-1 planned for Dec 2007 Page Interim Results Presentation

33 West Africa Congo Block Marine IX Tertiary (Turbidite Channel) Play ~ 14 BBO Reserves & Growing ~ 100 Expl. Wells since 1994 Cretaceous (Albian-Cenomanian Raft) Play ~ 5 BBO Reserves Significant Producer: Congo & Angola Pre-Salt (Syn-rift Sand) Play ~ 2.6 BBO Reserves Under Explored - MPN Block (1 Well) Most of Wells: Pre-1980 Recent Seismic Pre-Salt Imaging has rejuvenated this play (From third party analysis using IHS and in-house reserve estimates) Page Interim Results Presentation

34 West Africa Congo Block Marine IX Marine IX Block (Premier 58.5%) Significant reserve potential 3D reprocessing and interpretation in 2007 Largest prospects Frida and Ida Exploration well 2008/9 Frida Structure Ida Structure Frida Prospect Frida Miocene Channel Kitina & Kitina Sud 150 mmbbls Ida Prospect N Kossa 280 mmbbls Moho 110 mmbbls Page Interim Results Presentation

35 Middle East / Pakistan Page Interim Results Presentation

36 Middle East / Pakistan Offshore Indus Anne-1 Anne-1 Spudding September 2007 Targeting 300 mmbbls First well in offshore Indus delta 1,300 metres water depth Premier 12.5% S N SW NE Page Interim Results Presentation

37 Asia Page Interim Results Presentation

38 Asia India Cachar Masimpur-3 Masimpur-3A Surface Location Page Interim Results Presentation

39 Asia Philippines Ragay Gulf Monte Cristo Monte Cristo Reef Prospect Offshore target drilled from shoreline SC43 Ragay Gulf Premier 21% Monte Cristo-1 Well planned for Dec 2007 Well costs carried, farmed out equity to Pearl Energy Page Interim Results Presentation

40 Asia Indonesia Kakap Pancing Kakap, 18.75% Discovery announced 23 rd August 2007 Tested and flowed oil to surface Opens up prospectivity of Lama reservoir across the Natuna Sea Page Interim Results Presentation

41 Asia High impact pipeline North Sumatra Block A Page Interim Results Presentation

42 Asia High impact pipeline Indonesia Buton Buton Island has a highly active oil generative petroleum system. Oil seeps to the surface are abundant and prolific Carbonate reservoirs have been mapped as closed structures in the subsurface Page Interim Results Presentation

43 Asia High impact pipeline Indonesia Tuna Seismic shows excellent indications of oil-prone source rocks DHIs Direct Hydrocarbon Indicators (DHIs) confirm working petroleum generative system Page Interim Results Presentation

44 Asia Vietnam Block 12W Page Interim Results Presentation

45 Asia Vietnam Block 12W Jay SW Jay NE Block 12W Jay Prospect Premier 37.5% Exploration Candidate for 2008 Mang Cau Mid Dua Dua sands 10 km 2.5km 10km Page Interim Results Presentation

46 Asia Vietnam Block 12W Go Kien WSW Mang Cau Dua Go Kien ENE Block 12W Go Kien Prospect Premier 37.5% Exploration Candidate for 2008 Mid Dua Dua sands 2.5km 10km Page Interim Results Presentation

47 Asia Vietnam Block 12W Falcon 10km Block 12W Falcon Prospect Premier 37.5% 3D seismic programme completed Q Exploration Candidate for 2008 Page Interim Results Presentation

48 Asia Vietnam Block 12W Peacock Block 12W Falcon Prospect Premier 37.5% 3D seismic programme completed Q Exploration Candidate for 2008 Peacock Prospect Peacock Prospect Peacock Prospect Page Interim Results Presentation

49 Asia High impact pipeline Vietnam Block 07/03 Red Grouper 10 km Blue Marlin NW Silver Sillago Silver Sillago SE Late Middle Miocene Carbonate Top Upper Dua Top Cau Basement Mang Cau 10 km Page Interim Results Presentation

50 Exploration drilling schedule M/East & Pakistan Egypt : NW Gemsa Gemsa Well-1 Pakistan : Indus Anne-1 West Africa Congo: Marine IX Frida Ida Gabon : Themis Admiral-1 Asia Indonesia : Tuna Buton North Sumatra Block A Vietnam : Block 12 Falcon-1 Jay-1 Go-Kien-1 Peacock-1 Block 07/03 Philippines : Ragay Gulf Monte Cristo North Sea Norway : PL407 Bream Appraisal PL406 Gardrofa UK : 23/22b SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2009 Firm wells Contingent wells High impact wells Page Interim Results Presentation

51 Summary Page Interim Results Presentation

52 Impact of major projects on Premier group production Daily Production (boepd) All projects earlier All projects later Base producing fields Page Interim Results Presentation

53 Forecast development expenditures ($millions) All projects earlier All projects later Base Page Interim Results Presentation

54 Summary Delivering a rising production profile Key developments are moving forward, which are capable of an additional 30,000 boepd High impact exploration programme over the next two years exposing shareholders to more than one billion barrels Low cost funding in place for our entire forward investment programme Completed two successful value-adding acquisitions during the period Page Interim Results Presentation

55 Page Interim Results Presentation September 2007