& 2002 I 2002 I NTERIM NTERIM R R ESULTS ESULTS P P RESENTATION - - PowerPoint PPT Presentation
R ESTRUCTURING & 2002 I 2002 I NTERIM NTERIM R R ESULTS ESULTS P P RESENTATION R ESTRUCTURING & RESENTATION 16th September 2002 Restructuring & 2002 Interim Results Presentation PRESENTATION Introduction Sir David John
16th September 2002
Restructuring & 2002 Interim Results Presentation
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Sir David John John van der Welle Charles Jamieson
Restructuring & 2002 Interim Results Presentation
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Restructuring & 2002 Interim Results Presentation
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up 42%
up 22%
up 18%
up 23%
(1) profit after tax £20.7m (2001: £17.7m)
up 17%
down 24%
(1) Proforma for Take or Pay
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Production (mboepd) Realised oil price ($/bbl) Realised gas price ($/mcf) Turnover less: share of JVs turnover Group turnover Operating costs Amortisation Gross profit Administration costs Operating profit Operating profit in JVs Total operating profit Net interest Exchange (loss) / gain Profit before tax Taxation Profit after tax Earnings per share - basic and diluted (pence)
2001
35.3 26.71 2.19 94 (19) 75 (17) (19) 39 (4) 35 10 45 (21) 1 25 (13) 12 0.8
£m 2002
50.2 23.38 3.19 115 (28) 87 (23) (24) 40 (4) 36 17 53 (16) (1) 36 (21) 15 1.0
£m
Working interest production Hedging - no significant impact ($20 floor, $30 cap) Higher production offsets lower prices Unit opex (incl JVs) £3.29/boe - down 17% Unit DDA (incl JVs) £3.03/boe - down 8% due to lower cost gas production Increased contribution from Myanmar Lower debt following 2001 peak Higher tax due to higher profits, plus UK budget change
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Net cashflow from operations Net interest Taxation Operating cashflow (after interest and tax) Capital expenditure Disposals Net cashflow Exchange/other Movement in net debt Yetagun interest accrued Opening net debt Closing net debt 62 (9) (7) 46 (33) 28 41 13 54
(218) 62 (14) (11) 37 (37)
(20) (7) (445) (472)
Capital expenditure - focus on exploration Increase in line with higher net revenues
Excl JV JV Total £m £m £m Exploration 11 6 17 Fields 9 6 15 Other 5
JV funding 8 (8)
4 37
2002 (As reported) £m 2001 (Incl JVs) £m
80 (11) (7) 62 (37) 28 53 16 69 (5) (379) (315)
2002 (Incl. JVs) £m
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2001 (Incl JVs)
(1) 2001 comparative as at 31 December 2001
97 476 379 312 122 Cash Debt Net debt Shareholders’ funds Gearing ratio % % 2002 (Incl JVs) 144 459 315 320 98 2002 (As reported) 126 344 218 320 NA
(1)
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– Kyle 4th well on stream – 100% production capacity availability in Myanmar/Indonesia – Myanmar near DCQ
– Operating cost savings – Administration costs down 17%
– Yetagun upgraded to 300 mmscfd capacity – WNG 2nd sale development awaiting GSA signature – Bhit/Zamzama on schedule
Note: More detail contained in Appendix
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Restructuring & 2002 Interim Results Presentation
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Natuna block A to Petronas and Hess
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25% shareholder in Premier
development financed
Petronas on a restructuring
conclude and restructuring terms and mechanics agreed
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aimed at early value realisation as stated in March 2002
exploration programme
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(1) converted at $1.45 = £1 as agreed between Premier/Amerada Hess/Petronas
400 163 107 670 282 12 294 152 224 670 Myanmar Indonesia - Amerada Hess - 23% block A
Total 777.0m ordinary shares @ 25p(1) 32.8m convertible shares @ 25p (1) Total Yetagun project debt Cash settlement Total
$ million
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Core Net Asset Value of Proven and Probable reserves at 30 September 2002 (excluding exploration and appraisal, technical reserves and other upsides)
Before Restructuring $ million
Assets sold at consideration (1) 670.0 670.0 Value of assets remaining (1) 593.7 593.7 555.3 555.3 Total assets 1263.7 593.7 1225.3 555.3 Other investments 16.4 16.4 16.4 16.4 Net debt (444.5) (120.7) (444.5) (120.7) Net asset value 835.6 489.4 797.3 451.1 Total number of shares (in millions) 1586.8 777.0 1586.8 777.0 Net asset value per share (in pence) (2) 34.0 40.6 32.4 37.5 Accretion in net asset value per share 20% 16%
12.5% discount factor 10% discount factor After Restructuring $ million Before Restructuring $ million After Restructuring $ million
(1) Assets valued at D&M valuation except for assets sold where restructuring value applied (2) NAV per share converted at $1.55=£1, close Friday 13 September (3) Oil price of $20 in 2003 escalating at 3% pa
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233 344 111 284 39 Cash (including JVs) Debt (including JVs) Net debt (including JVs) Shareholders’ funds Gearing ratio % 89 (115) (204) (36) NA 144 459 315 320 98 Proforma Balance sheet at 30 June 2002 £m Impact of restructuring £m Balance Sheet at 30 June 2002 £m %
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Court
Companies Act Reduction of Capital
after internal reorganisation
– Sign framework agreement and $210m bridge facility September 2002 – Circular October 2002 – EGM November 2002 – Government approvals December 2002 – Court sanction after Government approvals – Completion after Court sanction – Debt refinancing after Completion
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New Premier 2P Reserves 218 mmboe
UK 14%
Working Interest Production
5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2003 2004 2005 boepd
Indonesia Pakistan UK
Indonesia 55% Pakistan 31%
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Production (mboepd) Reserves (mmboe) % UK & Indonesia Oil/gas reserve mix Capex 2003-5 Proforma net debt Proforma net assets Proforma gearing NAV 10% 45-50 514 54% 14% Oil £136m £315m £320m 98% 34.0p/sh
Existing Post Restructuring
30-35 218 69% 20% Oil £65m £111m £284m 39% 40.6p/sh
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fund business development
has been exploited
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– Existing areas (South & South East Asia, North West Europe) – West Africa – Other - opportunistic
– Emphasis on oil or gas that can be commercialised – Tradeable oil or gas assets
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Pakistan Pakistan Indonesia Indonesia
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PKP interests Gas fields
Pakistan
Additionally one non -
well to be drilled in 2002:
Additionally one non -
well to be drilled in 2002:
Two PKP operated exploration wells to be drilled in 2002:
spudded 30/6/02
to spud Q4 Two PKP operated exploration wells to be drilled in 2002:
spudded 30/6/02
to spud Q4
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drilled in 2002 in the Dumbar block; Benir-2 spudded 30/6/02 and Zirkani-1 will spud October 2002
structures, proven reservoir and trapping style to the north (Bhit and Zamzama Fields).
Dumbar EL Zirkani-1 Zirkani-1 Benir-2 Benir-2
Gas fields Prospects/Leads
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Singapore
Kuala Lumpur
2002 is to test prospects in Area IV, Natuna Sea.
prospects have been identified on seismic data acquired in 2001.
Kerteh
“ Area IV” “ Area IV” Natuna A Natuna A
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mid October 02. Most likely unrisked reserves 130 mmbbls oil gross
late November 02. Most likely unrisked reserve also 130 mmbbls oil gross
Indonesia
NW Natuna Sea Block II Conoco
Malaysia
Kakap Northern Gulf Kakap Southern Gulf Block A Block A Block A NW Natuna Sea Block I Premier
Area IV Area IV Binturong-1 Binturong-1 Kuda Nil-1 Kuda Nil-1
Oil fields Gas fields Prospects/Leads
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North East India North East India UKCS: West of Shetland UKCS: West of Shetland Guinea Bissau Guinea Bissau Gabon Gabon
Existing Business Unit New Venture Country
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Bissau
Guinea-Bissau
Block 2 Premier
Senegal Guinea
Block 4A Premier
Block 5a Premier
with oil shows.
diapir, then mechanical difficulties prevented the main Albian target from being penetrated.
intention is to return Q1/2 2003 and drill the Sinapa-2 well, also possibly drilling one of 12 similar structures on Sinapa and the adjacent Esperança blocks.
government back-in) equity in all 3 blocks.
Sinapa Sinapa Esperança Esperança
Atlantic Ocean
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Setté Cama Mayumba
Gabon Etame Oil Field Etame Oil Field Phenix TEA Phenix TEA
– mature pre-salt syn-rift lacustrine source rocks –
“ Gamba” sheet sand, with excellent reservoir quality and “ plumbing” to the source rock – Gamba reservoir overlain by marine shales and halite, forming excellent seal
has confirmed the play
Phenix TEA, earning 25% equity.
Atlantic Ocean
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BG’s equity in Amerada Hess operated 204/16.
1/9/02, and will test the extension of the 2001 Faroes P001 Marjun discovery.
between 16 and 20.8% depending on the actual costs incurred
204/16 Amerada 204/16 Amerada Marjun discovery well, Faroes 6004/16-1Z Marjun discovery well, Faroes 6004/16-1Z
Foinaven
Foinaven Loyal Schiehallion Clair
Shetlands
Sullom Voe
204/16 Amerada 204/16 Amerada
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finalised and are currently awaiting Indian Government approval.
India
Bhutan China Bangladesh Myanmar
Oil play in Assam: Jaipur Block Oil play in Assam: Jaipur Block Gas & oil play in Cachar/Tripura: Cachar Block Gas & oil play in Cachar/Tripura: Cachar Block
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Pakistan : Benir-2 Pakistan : Zirkani-1 Pakistan : Halel-1 UKCS : 204/16-1 Indonesia : Kuda Nil-1 Indonesia : Binturong-1
appraisal
2002
June July Aug. Sept. Oct. Nov. Dec.
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Leverage to significant value add/share price appreciation
to fund exploration and commercial success
exploration prospects
the share price – Top quartile exploration record, reputation & experience – Base business in place without significant capex requirement – >300 mmboe net un-risked potential being drilled in the next 6 months – Cycle out / farm down assets when growth potential has been exploited – Shareholders resolution. Exit from
16th September 2002
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Restructuring & 2002 Interim Results Presentation
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– Operating cost savings – Administration costs down 17% – Reduced unit production costs - down 17%
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MYANMAR
INDONESIA
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PAKISTAN
– rigorous environmental management leads to successful start to drilling
– EWT production well over expectations – Government approval for next phase signed in March – development project to expand to 350 mmscfd by September 2003 on target
– further upside being negotiated
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UK
ALBANIA