28 th August 2008 2008 Interim Results Presentation Forward looking - - PowerPoint PPT Presentation

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28 th august 2008 2008 interim results presentation
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28 th August 2008 2008 Interim Results Presentation Forward looking - - PowerPoint PPT Presentation

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28 th August 2008 2008 Interim Results Presentation Forward looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events

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2008 Interim Results Presentation 28th August 2008

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28th August 2008 | Page 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.

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28th August 2008 | Page 3

Highlights

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28th August 2008 | Page 4

Summary highlights

2008 successes on Chim Sáo and Banda, discoveries on Chim Ung and Chim Công.

Appraisal successes in Vietnam and Mauritania Significant progress on all development projects

Fully-termed Gas Sales agreements for Singapore and Batam signed. Board approvals for Gajah Baru and Chim Sáo completed. Strong UK oil production across our major fields and gas from Zamzama Phase 2 in Pakistan.

Production up 11% at 38,000 boepd Record financial performance

Increased profits, strong cashflow and further strengthening of our balance sheet position. Frøy and Chim Sáo reserves progressed to 2P booking stage. Reserve upgrade on Natuna Sea Block A anticipated.

A growing 2P reserve base

1. 2. 3. 4. 5.

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28th August 2008 | Page 5

Operations update

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Field development schedule

Non-operated

Existing producing fields Scott Wytch Farm Pakistan Anoa Other Natuna Sea Block A 2008 2009 2010 Major projects Gajah Baru Alur Siwah Chim Sáo / Dua Frøy 2008 2009 2010 2011 2012

Project Initiation Concept Selection Project Sanction First Production Study Design Execute Operated

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28th August 2008 | Page 7

Asia – Indonesia – West Natuna Block A

Gajah Baru

  • Gas transportation negotiations are nearing completion and

govern timing of project sanction

  • EPCI tendering process is underway – bids expected in October
  • Order has been placed for wellhead platform steel
  • Rig tendering is about to commence

Anoa

  • Multi-well drilling programme planned for 2009

– New oil development well – Ongoing gas development wells – Deeper exploration target

  • Production programme is indicating potential for a significant

reserves increase Block A Development

  • Block-wide plan has been optimised to eliminate the need for

further compression at Anoa

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28th August 2008 | Page 8

Asia – Indonesia – Alur Siwah

  • GSA signed with PIM for the sale of 110 Bbtud in December 2007
  • GSA signed with PLN for sale of 15 Bbtud to their IPP in April 2008
  • FEED commenced in July and tendering of drilling rig will commence shortly
  • Negotiations continue with ExxonMobil and PT Arun for gas transportation and condensate export
  • Operator working towards first gas to PIM in Q42010 and early gas to PLN from end 2009
  • Oil reactivation project underway; conceptual studies for Kuala Langsa continuing
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28th August 2008 | Page 9

Asia – Vietnam – Chim Sáo / Dua

Chim Sao

  • Bid exercises for the FPSO and the surface

facilities completed

  • Work has commenced under interim agreements

with the successful bidders

  • Going through the final stages of partner and

government approval processes

  • Appraisal success has confirmed previous

reserve ranges

  • First production from Chim Sáo targeted for

mid-2010 Dua

  • A subsea tieback planned for 2011
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28th August 2008 | Page 10

  • Latest operator reserves estimate is 56 mmbbls
  • First production is targeted for H2 2012
  • An FPSO/wellhead platform alternative still exists
  • Reservoir modeling and development planning has progressed
  • Operator is ready to submit PDO and sign JUDPSO contracts
  • Complex commercial negotiations are ongoing between the field
  • wners and the preferred contractor (e.g. payment guarantees)
  • Premier is planning to be a 49% participant in the JUDPSO SPC

North Sea – Norway – Frøy

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28th August 2008 | Page 11

Exploration update

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28th August 2008 | Page 12

Exploration look ahead

2009 Contingent Wells Firm Wells: Rig Contracted

Asia

Indonesia : Tuna Gajah Laut Timur Singa Laut Natuna Anoa Deep Tenggiling

  • N. Sumatra A

2 wells Buton 1 well Vietnam : 07/03 2 wells 104-109/05 2D seismic and well

West Africa

Congo: Marine IX Frida Ida

North Sea

UK : P1177 (21/7b) Typhoon P1181 (23/22b) Corrie Norway : PL359 (16/1,4) Greater Luno PL374S (34/2,5) Blaabaer PL378 (35/12,36/10) Waxbill PL406 (8/3) Gardrofa PL407 (17/8,9,11,12) Bream Appraisal J F M A M J J A S O N D 2010 J F M A M J J A S O N D Firm Wells: Rig TBC Seismic Programme

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Asia – exploration and appraisal update

Country Block Prospect Equity Prospect size Vietnam Block 07/03 2 wells 45.00% TBA Indonesia Natuna Block A Anoa Deep 28.67% 30 mmboe Tuna Block Gajah Laut Timur 65.00% 280 mmbbls Tuna Block Singa Laut 65.00% 90 mmbbls

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West Africa – exploration and appraisal update

Country Block Prospect Equity Prospect size Congo Marine IX Frida 31.50% 170 mmbbls Marine IX Ida 31.50% 320 mmbbls

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28th August 2008 | Page 15

North Sea – exploration and appraisal update

Country Block Prospect Equity Prospect size Norway 17/12 Bream 20.00% 50 mmbbls 8/3 Gardrofa 40.00% 90 mmbbls 16/4 Greater Luno 30.00% 150 mmbbls 35/12 Waxbill 40.00% 100 mmbbls 34/2,5 Blaabaer 15.00% 300 mmbbls UK 21/7b Typhoon 30.00% 30 mmbbls 23/22b Corrie 25.00% 65 mmbbls

  • Discoveries in adjacent acreage have increased the prospectivity of our North Sea position
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28th August 2008 | Page 16

North Sea – exploration and appraisal update

4 1 3 1 Typhoon (21/7b) 2 Moth (23/22b) 3 Bream (17/12) 4 Gardrofa (8/3)

Moth Moth Ext/Corrie

2

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28th August 2008 | Page 17

Interim financial results

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28th August 2008 | Page 18

Financial highlights

  • Net cash of $176.9m

(prior year end $79.0m)

  • Operating profit of

$203.6m up 146% on prior year

  • Rising production (up 11%)
  • Strong commodity pricing
  • Healthy gas demand in

Singapore and Pakistan

  • Maintained cost control
  • Post tax profit of

$71.2m up 247% on prior year

  • Operating cash flow
  • f $191.1m up 104%
  • n prior year
  • Cash flow continuing to rise
  • Well positioned for

development spending phase

  • Balance sheet strength

increasingly valuable

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28th August 2008 | Page 19

Production and income statement

Average gas pricing ($/mcf) Working Interest Production (kboepd) Entitlement Interest Production (kboepd) Realised oil price ($/bbl) Realised gas price ($/mcf) 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 Earnings per share (cents) 6 months to 30 June 2007 34.1 29.2 64.6 5.03 $m 256 (130) 126 (35) (8) 83 (14) 69 (48) 21 25 6 months to 30 June 2008 38.0 33.1 110.0 6.61 $m 386 (139) 247 (32) (11) 204 (13) 191 (119) 71 86 Effective tax rate of 58% of operating profit (2007 – 58%) Premium to Brent average oil price Operating costs per barrel Includes hedging provision of $7m (pre-tax) 1H 2008 1H 2007 Singapore $16.16 $9.60 Pakistan $3.28 $3.07 1H 2008 1H 2007 UK $21.7 $14.6 Indonesia $6.5 $6.9 Pakistan $1.3 $1.7

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28th August 2008 | Page 20

Cashflow

Cash flow from operations Taxation Operating cash flow Capital expenditure Pre licence expenditures Net cashflow Opening net cash/(debt) Net cash from financing Closing net cash/(debt)

6 months to 30 June 2008 $m

Capital Expenditure ($m)

6 months to 30 June 2007 $m

1H 2008 1H 2007 Exploration Development Acquisitions 260 (69) 191 (74) (7) 110 79 (12) 177 128 (34) 94 (196) (7) (109) 41 44 (24) 61 46 89 196 51 23 – 74

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28th August 2008 | Page 21

Premier’s financial strength

  • Strong balance sheet position

($433m cash at 30 June 2008)

  • Undrawn bank facilities of $222m

and additional debt capacity

  • Forecast exploration expenditure
  • f $90m in 2008, increased

programme for 2009

  • Development capex funded by

cash resources and early cashflow

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Development capex forecast ($ Millions)

50 200 150 250

2008

450 300

2009 2010 2011 2013

350 400

2012 Frøy (leased case) Gajah Baru, Chim Sáo/Dua (leased case), Alur Siwah Existing producing fields

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28th August 2008 | Page 22

Outlook

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28th August 2008 | Page 23

Outlook

  • Execution phase of development

projects to first production in 2010

  • Extensive exploration campaign

planned of up to 19 wells over the next 18 months

  • Filling the exploration hopper with

new projects

  • Leverage strong balance sheet

position to deliver acquisitions

  • People and funding are in place

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Production forecast (kboepd)

10 40 30 50

2008

80 60

2009 2010 2011 2013

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2012 Frøy (leased case) Gajah Baru, Chim Sáo/Dua (leased case), Alur Siwah Existing producing fields

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28th August 2008 | Page 24 www.premier-oil.com

28th August 2008