2007 AGM Presentation
Highlights Operated drilling successes in Indonesia & Vietnam 3 acquisitions adding low cost barrels Real progress in commercial discussions Further definition on development projects across all regions Dua and Blackbird in Vietnam; Lembu Peteng, Macan Tutul and Lukah in Indonesia Current drilling in India 270 bcf net certified gas in North Sumatra Block A Adding 5,000 bopd UK Scott production New opportunities with Middle East JV Signed MOU for gas sales in North Sumatra Significant progress on West Natuna gas Resolution of partner issues on Ratna Initiated sale process for Mauritania 25% increase in reserves and resources Tangible progress towards our medium term target of 50,000 boepd
Financial highlights Profit after tax Up 75% to $67.6 million (2005 - $38.6 million) Operating cashflow Up 102% to $244.8 million (2005 - $121.2 million) Operating costs Stable at $6.0 per barrel (2005 - $5.9 per barrel) Balance sheet Net cash of $40.9 million (2005 net debt of $26.2 million)
Corporate strategy Corporate Strategy Deliver value through a growth focused independent upstream E&P business Production growth through development projects Focused high impact exploration Pursuit of acquisitions which are complementary to existing assets and knowledge base Medium Term Targets Targeting production growth to 50,000 bopd 4 high impact wells per annum within disciplined spend
Share price performance 1400 1200 Premier Oil share price performance over 5 years Share price (p) 1000 800 600 400 200 0 May-02 May-03 May-04 May-05 May-06 May-07
Look ahead Progress development sanctions High impact exploration in India and Pakistan Focus exploration efforts on 2008/9; Vietnam, Congo and Norway Complementary acquisitions to existing Businesses
Resolution 1 Approval of the Report of Directors, the Auditors Report, and the accounts of the Company for the year ended 31 December 2006 1,267 43,384,332 99.97% 8 12,561 0.03% 5 96,025
Resolution 2 Approval of the Directors Remuneration Report for the year ended 31 December 2006 1,141 33,464,376 85.35% 106 5,744,823 14.65% 42 4,283,719
Resolution 3 Election of Professor David Roberts as a Director 1,225 43,451,530 99.92% 36 31,517 0.07% 18 9,871
Resolution 4 Re-election of Sir David John as a Director 1,213 43,440,643 99.90% 46 43,301 0.10% 20 8,974
Resolution 5 Re-election of Mr John Orange as a Director 1,201 41,768,176 97.32% 53 1,151,599 2.68% 35 573,143
Resolution 6 Re-election of Mr Scott Dobbie as a Director 1,202 43,255,480 99.47% 57 228,715 0.53% 21 8,723
Resolution 7 Re-election of Mr Simon Lockett as a Director 1,231 43,279,606 99.53% 30 202,544 0.47% 18 10,768
Resolution 8 Reappointment of Deloitte & Touche LLP as auditors 1,222 36,111,957 96.67% 42 1,242,460 3.33% 22 6,138,501
Resolution 9 Authorisation for the company to communicate with its shareholders by website, e-mail, or other electronic means 1,115 43,392,646 99.87% 106 57,906 0.13% 59 42,366
Resolution 10 Authority to issue a limited number of shares in the Company per s80 Companies Act 1985 1,176 43,128,784 99.20% 74 344,385 0.79% 33 19,749
Resolution 11 Authority to allot capital for cash per s95 Companies Act 1985 1,157 43,412,977 99.85% 87 64,311 0.15% 36 15,630
Resolution 12 Authority to purchase own shares 1,205 42,741,143 98.43% 57 681,302 1.57% 18 70,473
18 www.premier-oil.com th May 2007