19 th May 2006 2006 AGM Presentation Operational highlights - - PowerPoint PPT Presentation

2006 AGM Presentation 19th May 2006

Page 3 | 2006 AGM presentation

Operational highlights

• Production ahead of

budget at 33,300 boepd

• Developments on track

in 2006

• Further gas sales

progressed

• Resource base

increased to 232 mmboe

• Successful exploration

and appraisal year

• World class HSE

performance Strong gas demand in Pakistan, Indonesia offsets UK

• decline. Rising profile in 2006.

West Natuna (West Lobe) expected 3Q 2006 Chinguetti onstream in February 2006. Zamzama phase 2 signed. Good progress in Pakistan and West Natuna. Net additions from discoveries and new licence awards. New acreage added for future exploration. 5 successes from 10 wells in 2005. Excellent start to 2006 in 2 operated wells. 5 years of continuous improvement as an Operator

Page 4 | 2006 AGM presentation

Financial highlights

• Operating profit up

112%

• Profit after tax up 75%
• Healthy cashflow
• Strong balance sheet
• Share buy back

initiated $125.7m (2004: $59.3m) $38.6m (2004: $22.1m) $118.9m (2004: $109.6m) Net debt $26.2m £10 million programme Rising oil and gas prices, stable production Rising profits offset by higher taxation charge Cashflow covers all operating and capital expenditures at current prices Significant cash inflow in January 2006 Average purchase cost of £5.55 per share

Page 5 | 2006 AGM presentation

Premier’s business strategy

• Targeting 50,000

boepd in medium term

• Reorganised

business

• Build on quality

prospect inventory for 2007 and beyond

• Minimum of 4 high

impact wells per annum within disciplined spend Strategy

• Acquisitions focus
• n core areas
• Exciting 2006

exploration programme, already delivering results

• Portfolio of new and

incremental development projects

• Rising production in

2006 Progress

Page 6 | 2006 AGM presentation

Share price performance

Premier Oil share price performance over 5 years

200 400 600 800 1000 1200 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Share price (p)

Premier FTSE 250 (rebased) FTSE Oils (rebased)

Page 7 | 2006 AGM presentation

Summary

• Exciting year ahead
• Close out gas sales contracts in Indonesia/Pakistan
• Actively target acquisitions in core areas
• High impact exploration in Guinea Bissau & Vietnam

Page 9 | 2006 AGM presentation

Resolution 1

80,254 12 143,795 15 46,558,540 1,645 0.31% 99.69%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Approval of the Report of Directors, the Auditors’ Report, and the accounts of the Company for the year ended 31 December 2005

Page 10 | 2006 AGM presentation

Resolution 2

2,769,019 71 3,857,415 135 40,156,155 1,471 8.76% 91.24%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Approval of the Directors’ Remuneration Report for the year ended 31 December 2005

Page 11 | 2006 AGM presentation

Resolution 3

15,396 25 57,854 33 46,708,980 1,610 0.12% 99.88%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Election of Mr A.R.C. Durrant as a Director

Page 12 | 2006 AGM presentation

Resolution 4

16,011 26 63,743 38 46,702,836 1,605 0.14% 99.86%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Election of Mr N. Hawkings as a Director

Page 13 | 2006 AGM presentation

Resolution 5

5,969,545 57 309,737 92 40,503,307 1,525 0.76% 99.24%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Re-election of Mr M.A.K. Alazai as a Director

Page 14 | 2006 AGM presentation

Resolution 6

4,312,607 47 351,368 63 42,118,254 1,564 0.83% 99.17%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Re-election of Mr I. Gray as a Director

Page 15 | 2006 AGM presentation

Resolution 7

4,081,615 47 574,748 52 42,126,226 1,576 1.35% 98.65%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Re-election of Mr J.R.W. Orange as a Director

Page 16 | 2006 AGM presentation

Resolution 8

5,962,745 24 266,773 42 40,521,321 1,606 0.65% 99.35%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Reappointment of Deloitte & Touche LLP as auditors

Page 17 | 2006 AGM presentation

Resolution 9

2,063,486 70 3,078,571 126 41,640,532 1,480 6.88% 93.12%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Approval of Amendments to the Premier Oil Asset & Equity Plan

Page 18 | 2006 AGM presentation

Resolution 10

16,923 37 155,652 85 46,610,015 1,549 0.33% 99.67%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Authority to issue a limited number of shares in the Company per s80 Companies Act 1985

Page 19 | 2006 AGM presentation

Resolution 11

22,190 48 167,150 103 46,593,202 1,519 0.36% 99.64%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Authority to allot capital for cash per s95 Companies Act 1985

Page 20 | 2006 AGM presentation

Resolution 12

117,757 17 136,400 66 46,528,433 1,588 0.29% 99.71%

Votes Holders Voting Votes Holders Voting Votes Holders Voting Votes Withheld Against For

Authority to purchase own shares