a Capital injection and strategic alliance with and A new Premier - - PowerPoint PPT Presentation

A new Premier with stronger finances and competitive A new Premier with stronger finances and competitive advantage in Asia advantage in Asia A primary investment vehicle for A primary investment vehicle for PETRONAS and Amerada Hess in Asia PETRONAS and Amerada Hess in Asia

and Capital injection and strategic alliance with

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Tan Sri Dato’ Mohd Hassan Marican President & Chief Executive Officer Sam Laidlaw President & Chief Operating Officer

PRESENTATION TEAM

Charles Jamieson Chief Executive Officer Sir David John Chairman

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TRANSACTION SUMMARY

• Premier to become a primary investment vehicle

for PETRONAS and Amerada Hess in Asia

• PETRONAS and Amerada Hess to become 25%

shareholders through injection of £136m of cash via a combination of new voting and non-voting shares

• Subscription for new equity at 25 pence per share
• Appointment of two non-executive Directors from

PETRONAS; Amerada Hess to retain two non- executive Directors

• Unanimously recommended by the Board of

Premier

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RATIONALE FOR THE TRANSACTION

• Strengthens Premier’s balance sheet in optimal manner
• enables retention of key assets
• enables financial challenges to be overcome
• Introduces PETRONAS as a key strategic partner
• the partner of choice in Asia
• builds on existing Yetagun relationship
• Reinforces Amerada Hess relationship and highlights their

long term commitment to Premier’s Asian gas strategy and growth potential

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• 30% premium to

yesterday’s closing share price

• 27% premium to

share price on day before Interims and announcement of discussions

PREMIUM PAID FOR STRATEGIC STAKE

6 month share price

APR MAY JUN JUL AUG SEP 10 12 14 16 18 20 22 24 26 28

Source: DATASTREAM

Subscription price

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CORPORATE GOVERNANCE AND MANAGEMENT

Majority of Directors will be independent from major shareholders A Consultative Committee will maximise opportunities for synergies (four Premier, two PETRONAS, two Amerada Hess) An Operations Director will be appointed Two PETRONAS non-executive Directors will be appointed

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BACKGROUND

• Declared Asian gas focus
• Proven track record of finding and developing

world class gas projects in Asia at low cost

• Reserve growth of 500% over 5 years
• Cashflows are low compared to capex

requirements

• Financial capability prevents development of full

potential of current business and new projects

• Challenge identified and several options reviewed

to address it: strategic investor route preferred

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BALANCE SHEET STRENGTH AND FLEXIBILITY

Funding gap solved Funding gap solved

300 200 100 122 Covenant 600 400 200 399m Gearing Lender Gearing

£ million Gearing (net debt/net assets) (%)

Interims Proforma 263m 80% 205% 105% 37% Net Debt

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THE FIT OF PREMIER AND PETRONAS

• Builds on existing relationship
• Secures support of leading NOC in region of focus
• strong relationships and influence
• infrastructure and downstream skills
• transfer of skills
• strong financial standing
• gas project synergies

Existing trust, dialogue and relationships Existing trust, dialogue and relationships The ideal partner The ideal partner

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THE PETRONAS PERSPECTIVE

• Establish new vehicle to develop Asian gas business
• Allies PETRONAS with Premier’s successful Asian growth
• existing projects
• proven track record of creating projects
• entrepreneurial skills
• Partnership built on trust and existing co-operation

Existing trust, dialogue and relationships Existing trust, dialogue and relationships The ideal vehicle The ideal vehicle

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THE AMERADA HESS PERSPECTIVE

• Strong reserves growth to-date
• Alliance with PETRONAS ensures momentum of growth continues
• Wider influence in the ASEAN region
• Operational overlap

An enhanced investment proposition for all shareholders An enhanced investment proposition for all shareholders including Amerada Hess with increased competitive including Amerada Hess with increased competitive advantage in Asia advantage in Asia Existing relationship cemented Existing relationship cemented

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THE ALLIANCE TODAY

• New funding

New funding

• Platform for growth in Asia

Platform for growth in Asia

• Consultative group established to capitalise

Consultative group established to capitalise

• n synergies
• n synergies

THE ALLIANCE VISION

Creation of a new high growth investment Creation of a new high growth investment vehicle for Asian Gas vehicle for Asian Gas

• Exploitation of major operating synergies

Exploitation of major operating synergies

• Organic growth

Organic growth

• Selective asset acquisitions to create the

Selective asset acquisitions to create the leading independent in Asia leading independent in Asia

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ALLIANCE ASSETS IN ASIA

• Spread of assets

provides potential to create the dominant position in Asia

Premier assets Amerada assets Petronas assets

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THAILAND OVERLAPS

Thailand Myanmar

Wang Noi Rayong Surat Thani Khanom Ratchaburi

M10 M13 M12

Mergui YANGON PHUKET Andaman Sea BANGKOK

Alliance interests Gas fields Proposed pipeline Existing pipeline

Yetagun

Gulf of Thailand

Pailin

JDA

• Thai gas market is in

early stages of privatisation

• Indigenous natural gas

will be used with imported gas from Malaysia and Myanmar

• The Alliance is

positioned to capitalise

• n its assets

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Premier interests Gas fields Kadanwari Ghauspur Qadirpur Dadhar Kirthar Dadu KNS Dumbar

Sukkur Karachi Lahore Quetta

Zarghun Discovery Bhit Field Badhra Discovery Pakistan Zamzama Discovery Bolan

Islamabad

PAKISTAN INFLUENCE

• Premier is in

most of the existing and future gas developments

• PETRONAS are

already established in Pakistan

• The existing and

new gas pipeline networks will lead in time to the import of gas from the Middle East

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INDONESIAN SYNERGY

• First gas export to

Singapore from Premier’s West Natuna assets underway

• Potential second gas

export to Malaysia from West Natuna under discussion

• New export of gas to

Singapore from Amerada acreage in Sumatra now agreed

• ASEAN gas grid now

becoming a reality

SINGAPORE Lingga Isl.

Banka

Anambas Isls. Singkep Isl.

Mentawai Isls S u n d a S t r a i t

S t r a i t

• f

M a l a c c a

PENINSULAR MALAYSIA

JAVA SUMATRA

THAILAND

South China Sea Natuna Sea

100 Km

Johor Baru Kerteh Penang Panjang Palembang Jambi Dumai

Kuala Lumpur

Singapo re N atuna Gas Trunkline Anoa Kakap

PREMIER

Duyong Sotong Guntong Semangkok Tapis Jerneh Lawit

Jakarta

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SUMMARY OF THE DEAL

• Clear synergies with PETRONAS and Amerada
• Greater regional influence
• Stronger finances
• Access to infrastructure and downstream skills
• Platform for creation of the leading independent in Asia

Adding value for all shareholders Adding value for all shareholders

A new and stronger Premier with competitive advantage in Asia A primary investment vehicle for PETRONAS and Amerada Hess in Asia

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ALLIANCE VISION IN ASIA

• Major Asian gas

player working in deregulated markets

• Inter country

infrastructure

• perator
• Identifier and

marketer of new gas reserves

Premier assets Amerada assets Petronas assets

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ALLIANCE VISION IN ASIA

Premier assets Amerada assets Petronas assets