2011 Half Yearly Results 25 August 2011

Transcription

1 2011 Half Yearly Results 25 August 2011

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. 25 August 2011 Page 1

3 Agenda Introduction and highlights Chim Sáo and Gajah Baru update Future developments update Exploration update Financial results Summary Simon Lockett Robin Allan Neil Hawkings Andrew Lodge Tony Durrant Simon Lockett 25 August 2011 Page 2

4 2011 Overall highlights Chim Sao and Gajah Baru projects on stream imminently Production of 60,000 boepd by year end 12 developments proceeding through development stages Building towards 100,000 boepd Resource additions through exploration on track to deliver 200 mmboe of 2P reserves by 2015 Wytch Farm, Solan and Fyne acquisitions add 43 mmboe of reserves and resources at a cost of around $5/bbl Financial strength positions us well Profits after tax of $88.5 million Growing operating cash flows exceed capital commitments Cash and undrawn bank facilities of $1.3 billion 25 August 2011 Page 3

5 Chim Sáo and Gajah Baru update 25 August 2011 Page 4

6 Chim Sáo WHP WHP Jacket prior to Load Out WHP Jacket Sail Away WHP Topsides Lift Off Barge WHP Topsides onto Jacket WHP Topsides onto Jacket Ensco 107 Rig & WHP 25 August 2011 Page 5

7 Chim Sáo FPSO Sail Away of Lewak Emas Trading Tanker prior to Conversion Conversion of FPSO in Dry Dock Arrival of Lewak Emas on Location 25 August 2011 Page 6

8 Chim Sáo production imminent FPSO is on location with mooring system, risers and connections to the WHP installed and tested Safe handover of the FPSO processing equipment from commissioning to operations is imminent Production crew familiarisation is ongoing First oil in tank expected 15 September Total costs of project within original budget of $800 million 25 August 2011 Page 7

9 Chim Sáo reserves increasing Chim Sáo Six production wells ready to produce MDS5 reservoir is significantly better than prognosed Additional potential in shallow MDS1 reservoir Near field success N2P well intersected a 20m oil column Additional gross resource estimate 7 to 12 mmbo Dua Dua subsea development is nearing project sanction Far Closure Near Closure West Closure 3060mss 2000m Chim Sáo 25 August 2011 Page 8

10 Gajah Baru Central Processing Platform (CPP) CPP Jacket Load Out from NSB Yard (Batam) CPP Topsides Load Out from SM0E Yard (Batam) CPP Jacket Launch from Saipem S45 Up-ending of CPP Jacket by Castoro 8 25 August 2011 Page 9

11 Gajah Baru CPP topsides float-over CPP Topsides Float-over Operation Bridge Installation Completed Gajah Baru Complex Export Pipeline Installation 25 August 2011 Page 10

12 Gajah Baru WHP, CPP Sea Aaryan Hook-up Accommodation Vessel CPP from Sea Aaryan WHP from CPP CPP from WHP CPP and WHP 25 August 2011 Page 11

13 Gajah Baru production imminent Project ahead of schedule Development drilling successfully completed in February 2011 Jacket installed and piling completed in June 2011 CPP topsides installed on jacket and bridge-linked to wellhead in July 2011 Gas export pipeline installed and tested in July, dewatered and dried in August Production for fuel gas ready Gas export to start early September ahead of contract date of 1 October 25 August 2011 Page 12

14 Future developments update 25 August 2011 Page 13

15 Progress towards 100,000 boepd Gajah Baru Early first gas Huntington Development drilling underway Catcher Development planning underway Central Fyne East Fyne Appraisal target Chim Sáo First oil in next few weeks Rochelle Unitised development Fyne Operatorship acquired 25 August 2011 Page 14

16 Project Initiation Project Sanction North Sea Asia Future development portfolio Concept Selection Ready for Production Cá Rồng Đo Block A Aceh Pelikan & Naga Chim Sáo Dua Gajah Baru Catcher Solan Huntington Asia North Sea Caledonia Bream Frøy Rochelle Fyne 25 August 2011 Page 15

17 Huntington Drilling template installed First development well highly successful Work continuing on the Sevan Voyageur FPSO upgrade project and sub-contracted modules Sevan s plan is for FPSO sail-away in April, implying June 2012 for first oil 25 August 2011 Page 16

18 Rochelle Phase 1 field development plan approved (East area) Single field development area determined by DECC Unitised development Premier 15% equity Plans for West area being integrated West area pipeline route survey completed (May) Rochelle Scott tariff arrangements concluded Initial tie-in works completed during Scott shutdown (August) Subsea long lead equipment ordered Drilling rig contract being negotiated First gas targeted for 4Q August 2011 Page 17

19 Natuna Sea Block A 2010 was a record year for Block A gas sales From Singapore demand of 355 bbtud, Block A sold 160 bbtud vs a DCQ of 126 bbtud 1H 2011, Singapore demand was 373 bbtud with Block A supplying 154 bbtud Gajah Baru builds up to 130 bbtud in 2012 In 2011 expect to approve: Anoa phase 4 compression expansion (2013) Pelikan and Naga field developments (2013) Total sales capacity will increase to 400 bbtud Gajah Puteri planned for 2015 Natuna A August 2011 Page 18

20 Catcher Formal concept selection underway Development options FPSO Fixed Platform FSO Subsea wells Platform wells Gas export/injection Premier s objective is to proceed with fast track development Catcher Development Field Illustration 25 August 2011 Page 19

21 Fyne In May, option exercised to become operator with a 39.9% equity stake Pre-development work progressed Joint venture partners evaluating development options Project sanction planned for early 2012 with first oil targeted for mid-2014 Development options Stand-alone FPSO Platform Subsea-tieback to host Eg Anasuria Additional discoveries and exploration potential provide upside opportunity Appraisal well planned for Q to de-risk East Fyne area Erne exploration well planned for Q Height above 4583ft NW Fyne Central Fyne 1000m East Fyne Appraisal target N 25 August 2011 Page 20

22 Y, Y, [m] [m] Solan SPA and Loan Agreement executed in May Premier will become the operator with a 60% equity stake Further engineering studies are underway Project now targeting 2014 for first oil _26a _26a _26a-7 205_26a-8 205_26a-7205_26a-8z 205_26a-8 205_26a-8z 205_26a-7z 205_26a-8z 205_26a-8z 205_26a-8z 205_26a-8z 205_26a-8z 205_26a-8y 205_26a-8y 205_26a-8z 205_26a-4 205_26a-8z 205_26a-8y 205_26a-8y 205_26a-8z 205_26a-8y _26a-8z 205_26a-7z 205_26a-8y 205_26a-8z 205_26a-8z _26a _26a-5z _26a _26a-5z Well Penetrations shown at Top Solan Producer & Injector 12 ¼ Sections at reservoir level (Cased) N Location of Wellhead Cluster at Sea Bed 1km P1 12 ¼ (July 2012) P1 8 ½ (May 2013) 205_26a-8z P1 P2 12 ¼ August 2012 W2 (June 2014) W2 Current uncertainty in FWL across field W1 12 ¼ (May 2012) 205_26a P2 8 ½ (June 2013) W1 8 ½ (June 2012) P3 in Upside Case (July 2014) Producer at reservoir level (Active 8 ½ Section) Injector at reservoir level (Active 8 ½ Section) Injector at reservoir level (Inactive 8 ½ Section) Main decision points for well steering or completion options Background Map = Top Solan Depth ft TVDSS with P50 Field Outline Depth N/G August 2011 Page X, [m] 205_26a-6 X, [m] _26a

23 Progress on other developments Block A Aceh (Indonesia) Dua (Vietnam) Caledonia (UK) Frøy (Norway) Bream (Norway) CRD (Vietnam) CRD-1X CRD-2X Anomalies associated with Gas Cau sequence 25 August 2011 Page 22

24 A path to 100,000 boepd Production outlook (bbls/day) 120, ,000 80,000 60,000 40,000 20, August 2011 Page 23 Huntington, Rochelle (UK) Chim Sáo, Gajah Baru (Asia) On Production Development capex (US$ million) Future Norway Developments Future UK Developments Future Asia Developments End of Year Run Rate

25 Exploration update 25 August 2011 Page 24

26 Progress towards 200 mmboe of discoveries Exploration and appraisal drilling At least 9 wells planned for the remainder of 2011 Discoveries at Burgman in the UK, K27 in Pakistan and North West of Chim Sáo in Vietnam Grosbeak and Cá Rồng Đo appraisal wells successfully completed Net estimated resource additions 20 to 30 mmboe Global exploration: Forecast resource additions (mmboe) Target cumulative risked additions Actual cumulative proved and probable discovered resources Actual cumulative plus possible resources New ventures 150 PSCs signed for exploration blocks L10A and L10B in Kenya Exercised option to farm-in to the Greater Fyne area in the UK East Fyne appraisal well and Erne prospect to be drilled 2H 2011 Premier pre-qualified for the Iraq 4 th Exploration round in Actively pursing new venture opportunities in all focus areas and themes August 2011 Page 25

27 Resource portfolio Unrisked prospective resource portfolio 1,950 mmboe 450 mmboe in prospects 1,500 mmboe in leads Unrisked Resource Portfolio Discovered resource under appraisal 80 mmboe Portfolio increased from 2010 Increased lead inventory in MEAP (Kenya) Prospect inventory adjusted post Tuna drilling Prospects 450 mmboe Total 1,950 mmboe Leads 1,500 mmboe Risked pospective resource portfolio 380 mmboe 120 mmboe in prospects 180 mmboe in leads Greater focus to lead maturation in 2012 Discovered resource under appraisal 80 mmboe Risked Resource Portfolio Discovered resource under appraisal 80 mmboe Leads 180 mmboe On track to deliver 200 mmboe of 2P reserves by 2015 Prospects 120 mmboe Total 380 mmboe 25 August 2011 Page 26

28 MEAP North Sea Asia Progress towards 200 mmboe of discoveries Evaluate Drill Appraise Leads Total Unrisked: 1500 Total Risked :180 Prospects Total Unrisked: 270 Total Risked: 63 Mature Prospects Total Unrisked: 180 Total Risked: 57 Appraisal Total: Blk 07: Blue Marlin P1430: Bonneville 15 P1420: Newark 15 1 P1559: Cornet 60 Samedi Blk 07: Silver Sillago 32 6 Blk 07: AD Deep 2 53 P1420: Manhattan Blk 07: CRT P1420: New York P1430: Rapide P1430: Cougar Tuna: Singa Laut P1212: Stingray PL359: Luno II 15 2 P1784: Typhoon Buton: Benteng Aceh: Matang P1181: Lacewing Badhra-7 K-32 Blk 104: Jackfruit 1 Aceh: Peudawa Rayeu P1430: Carnaby 1 <1 <1 <1 Natuna: Anoa Deep Natuna: Biawak Besar 17 6 P1466: Bluebell P1875: 2 Erne K-30 1 <1 PL406: Gardrofa K-29 Vietnam Block 07/03: CRD Vietnam Block 12W: CS NW Norway PL378: Grosbeak Norway PL374S: Blabaer UK P077: East Fyne Pre- Development Badhra South Badhra-6 Parh Acquire Licence Prospect potential resource mmboe (net unrisked): Risked Drill Decision Appraisal Approval Gate Project Extension Gate NB: Resource estimates identified for prospective drilling candidates 25 August 2011 Page 27 Seismic < >50

29 Exploration Indonesia/Vietnam Nam Con Son Basin Key prospects with Oligocene reservoirs at optimum depths Mackerel Blue Marlin CRD NE Top Oligocene Structure Map CRD AD Deep Silver Sillago Fault Terrace Singa Laut Fault Terrace Belut Laut Gajah Laut Utara Unique integrated database New petroleum system established 600 mmbo and >1 TCF of unrisked prospective resource potential 25 August 2011 Page 28

30 Exploration Vietnam Block 07/03 Chim Sáo vs Silver Sillago Chim Sáo Silver Sillago SW NE NW SE CS-2X MMU Top NCS MMU Dua MDS5 Top Basement Top Cau Top Basement Top Cau Chim Sáo Line Similar proximal access to source package Fault seal remains a key risk Silver Sillago Line 25 August 2011 Page 29

31 Exploration Indonesia Tuna PSC Kuda Laut Singa Laut Belut Laut-1 TD 4977m Gajah Laut Utara-1 TD 4687m MMU L.Terumbu Depth of Top Oligocene in Gajah Laut Utara Arang Gabus Oligocene prospectivity remains up dip from proven source kitchens Singa Laut /Kuda Laut Oligocene sandstones at 3,000 mss Fault seal risk mitigated by anticline to the west of bounding fault (Kuda Laut) Unrisked resource estimate 100 mmboe 25 August 2011 Page 30

32 Exploration North Sea Building on the Catcher success Premier has the regional database to pursue amplitude supported Tertiary prospects throughout the Central North Sea The focus is towards basin margin settings in structural/stratigraphic traps Over the next 12 months Premier will drill at least 5 exploration wells on this play These wells will test a total gross unrisked prospective resource of 100 mmbo (net 40 mmbo) New venture options are being actively pursued both in the UK and Norway Typhoon East Fyne / Erne Eocene Turbidite Sand Fairway Bluebell Carnaby 25 August 2011 Page 31

33 Appraisal UK Block 21/28a Greater Fyne Area East Fyne Appraisal Premier 39.9% equity Well planned for Q4 2011, targeting Eocene Tay Sands Gross prospective resource estimate mmbo East Fyne Erne Premier equity 50% Well planned for Q Catcher Tay play type analogue Gross prospective resource estimate mmbo Erne Prospect Central Fyne 21/28a-9 East Fyne Appraisal well Erne Prospect W. Guillemot Tay amplitudes Horda Upper Tay Main Mid-Tay 21/28a-9Y Approx position of predicted OWC in TWT Upper Tay BTM Chalk Chalk 25 August 2011 Page 32

34 Exploration UK Bluebell Bluebell Bluebell (P1466 ) (15/24c,15/25f) Premier 60% equity Palaeocene reservoir Crevasse play Gross prospective resource estimate mmboe Partial carry by farm-in partner Well planned for Q Valuable tieback opportunity Top Forties Depth SS, CI=5 m Top Forties Lambda Rho Extraction Near Offset Bluebell Bluebell Well Location Bluebell Site Survey Top Forties Lambda Rho Extraction Bluebell Lamda Rho, HC Indicator Bluebell Bluebell Well Location 25 August 2011 Page 33

35 Exploration UK Typhoon Typhoon (21/7b) Premier 70% equity Block awarded in 2010 Gross prospective resource estimate mmbo (Tay reservoir) Risk assessment Moderate risk Seismic reprocessing ongoing Well planned for Q Typhoon Amplitude response on inverted data Block 21/7b Typhoon Block 21/8 Typhoon Prospect Scolty Oil discovery 25 August 2011 Page 34

36 Exploration UK Carnaby Carnaby (28/9) Premier 35% equity Gross prospective resource estimate mmbo (Tay reservoir) Expected phase oil Gas in shallower Eocene targets (Upper Tay) Risk assessment Moderate risk at lower Tay level - oil quality High risk at Cromarty level - reservoir presence and charge Acquisition of new 3D seismic data ongoing Well planned for Q Carnaby Varadero Burgman Catcher E Catcher Main Cromarty Depth Structure Carnaby Carnaby Prospect Eocene ( Lower Tay) amplitude extraction S N Upper Tay Varadero Lower Tay Carnaby Catcher N & E Carnaby Burgman Burgman 25 August 2011 Page 35

37 Exploration Norway Luno II Luno II (PL 359) Premier equity 30% Greater Luno is a regional high Focus for oil migration Regional top seal drapes the high Jurassic/Triassic reservoirs flank the high and, where fractured, basement is also a reservoir ~2,000 mmboe discovered to date Key play risks Reservoir presence on the margins of the high Lateral seal Aldous Major South discovery Proves eastern margin of the basement high Reserve estimate ~1,200 mmbo Luno II Southwest margin prospect down dip from cemented basement- up dip from proven source kitchen Mesozoic sand presence interpreted from seismic and local well data Gross prospective resource estimate mmbo (Operator estimate) Well planned for Q SW Luno/Apollo PL 359 BCU Ragnarrock Luno II Prospect 10km Jurassic Aldous/ Avaldnes BCU Time Map C.I. 100 ms Luno II Prospect Triassic NE 25 August 2011 Page 36

38 Exploration drilling Q to Q Asia Vietnam 104/ Qua Mit Vang (Jackfruit) Buton Benteng-1 Natuna Sea Block A Anoa Deep Biawak Besar Block A Aceh Matang North Sea Norway PL406 Gardrofa PL359 Luno II UK P1466 Bluebell P077 East Fyne P1430 Carnaby P1212 / P1771 Stingray Block 21/29d Erne P1784 Typhoon P1557 West Orkney Middle East & Pakistan Pakistan Kadanwari K-29 K-30 Bhit-Badhra Badhra-6 Parh Kenya Blocks 10A & 10B 2D & 3D Seismic Q3 Q4 Q1 Q2 Aqua Marine Driller W Callisto W Callisto Antareja-8 Bredford Dolphin Sedco 704 Sedco 704 WilPhoenix ~ 300 mmboe gross unrisked resource 2011 full year exploration expenditure ~ $250 million pre tax Firm Wells: Rig Contracted Firm Wells: Rig TBC Contingent Wells Seismic Programme 12 to 15 exploration and appraisal wells planned in August 2011 Page 37 All well timings are subject to revision for operational reasons

39 Financial results 25 August 2011 Page 38

40 Production update Production (working interest) (kboepd net) Mid Point Estimate End of Period Run rate 1H 2011 Steady performance in Pakistan Anoa field in Indonesia continues to respond well to Singapore demand Reduced facility up-time in UK North Sea 40 Outlook Recovery in UK performance New fields in Asia drive 60 kboepd yearend run rate average of around 60 to 65 kboepd A 1H 2H 2011 E E 2012 E 75 kboepd run rate post Huntington 25 August 2011 Page 39

41 Revenue and income statement Working Interest Production (kboepd) Entitlement Interest Production (kboepd) Realised oil price ($/bbl) Realised gas price ($/mcf) 6 months to 30 June months to 30 June Highlights Average Brent oil price was $111.1/bbl (2010: $77.3/bbl) Average gas pricing ($/mcf) Singapore $18.5 $13.8 Pakistan $3.7 $3.3 Sales and other operating revenues Cost of sales $m 342 (200) $m 367 (189) 2011 sales revenues include realised hedging loss on oil and gas production of $58.2 million (pre-tax) Gross profit Exploration/New Business General and administration costs Operating profit Financial Items Profit before taxation 142 (91) (9) 42 (9) (46) (8) 124 (12) 112 Operating costs per barrel ($/bbl) UK $34.2 $24.7 Indonesia $9.6 $7.1 Pakistan $2.1 $1.6 Group $14.0 $12.9 Taxation credit/(charge) Profit after tax (50) 62 Tax credit arises due to revaluation of UK tax allowance pool following UK government tax changes 25 August 2011 Page 40

42 Group taxation position 6 months to 30 June 2011 $m 6 months to 30 June 2010 $m UK Tax Allowance Position $m Overseas UK PRT CT Prior period revisions nil (0.6) nil (18.4) Recognised previously as deferred tax asset Currently unrecognised Tax allowances at 1 Jan estimated net additions Estimated end 2011 position , , UK deferred tax credits (131.8) 22.5 Tax credit for the period (56.0) 49.6 Additional deferred tax credits mainly due to change in UK tax rate UK allowances of $140 million not yet recorded UK cash corporate taxes not anticipated until at least August 2011 Page 41

43 Cash flow Cash flow from operations 6 months to 30 June 2011 $m months to 30 June 2010 $m 273 Estimated capex split ($m) 1H H 2010 Development Exploration Taxation (4) (51) Operating cash flow Capital expenditure (Acquisitions)/disposals, net Finance and other charges, net 242 (297) (87) (24) 222 (212) 20 (27) Balance sheet ($m) 31 Dec 1H Cash Net Debt Pre-licence expenditure (10) (11) Undrawn facilities Net cash flow (176) (8) Outlook Forecast full-year 2011 spend $500m (development) and $250m(exploration) Net debt of around $600m (gearing of 32%) Net debt peak of around $750m on forward curve 25 August 2011 Page 42

44 Summary 25 August 2011 Page 43

45 Delivering on strategy Asian development project success Stronger North Sea production performance anticipated in 2H Good progress on pipeline of development projects Exploration on target to deliver 200 mmboe of discoveries Acquisition track record at reasonable prices Strong first half year financial results and balance sheet position 25 August 2011 Page 44

46 25 August 2011 Page August 2011