Annual General Meeting 18 May 2012 Forward looking statements This - - PowerPoint PPT Presentation

Annual General Meeting 18 May 2012

May 2012 | Page 1

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

• r events to differ materially from those expressed or implied

by these forward-looking statements.

May 2012 | Page 2

Strategy

Delivering consistent growth

• Deliver further growth by

commercialising contingent resource base of 228 mmboe

• Add 200 mmboe through

exploration by focusing on core geologies

• Make value-adding

acquisitions

• Maintain our balance sheet

strength

May 2012 | Page 3

Over the last 6 years …

Over the period, NAV/share CAGR of 14.2% excluding oil price effects

May 2012 | Page 4

Production and development forecast

120,000

Production outlook (bbls/day)

40,000 20,000 60,000 2012 2014 2013 2016 100,000 80,000 2015

At $100/bbl, expect post tax cash flow of ~$2 billion in 2015

Huntington

Pre-Development Sanctioned Projects On Production

Solan Catcher Rochelle

May 2012 | Page 5

Exploration outlook

200 100 50 150

2012 2013 2014

450

Actual & forecast risked resource additions 2009-2015 (mmboe)

2009 Actual

400 350 300 250

2010 Actual 2011 Actual 2015

Actual cumulative plus possible resources Cumulative risked prospective resource additions Risked prospective resource additions Actual proved plus probable additions

• Unrisked prospective portfolio of >1.5 billion boe

May 2012 | Page 6

Already in 2012...

• Solan
• Pelikan, Naga & Dua
• Anoa Deep
• EnCore Oil
• Finance

– – – – – DECC approval Partner sanction A new exploration play beneath Anoa Completed acquisition and Cladhan sale Cash/undrawn facilities increased to $1.5 bn Forward plan...

• Production
• Developments
• Exploration
• Acquisitions
• Cash flow

– – – – – Rising production to 100,000 boepd Delivery on time, on budget, operated Enhancing portfolio materiality Where we can add value Increasing to $2 bn per annum

What can you expect from Premier?

May 2012 | Page 7

Resolutions

May 2012 | Page 8

Resolution 1

Adoption of the Report of Directors, the Auditors’ Report, and the Financial Statements for the year ended 31 December 2011

For Against Withheld Votes % Votes % Votes

360,826,159 99.36 1,951,436 0.54 1,942,902

May 2012 | Page 9

Resolution 2

Approval of the Remuneration Report for the year ended 31 December 2011

For Against Withheld Votes % Votes % Votes

328,710,154 90.61 33,720,372 9.30 2,308,778

May 2012 | Page 10

Resolution 3

Re-election of Mr R A Allan as a Director

For Against Withheld Votes % Votes % Votes

359,166,987 98.91 3,604,201 0.99 1,950,253

May 2012 | Page 11

Resolution 4

Re-election of Mr J Darby as a Director

For Against Withheld Votes % Votes % Votes

350,571,848 96.54 12,196,447 3.36 1,947,123

May 2012 | Page 12

Resolution 5

Re-election of Mr A R C Durrant as a Director

For Against Withheld Votes % Votes % Votes

359,421,071 98.98 3,337,200 0.92 1,966,802

May 2012 | Page 13

Resolution 6

Re-election of Mr N Hawkings as a Director

For Against Withheld Votes % Votes % Votes

359,465,574 98.99 3,308,633 0.91 1,950,866

May 2012 | Page 14

Resolution 7

Re-election of Ms I J Hinkley as a Director

For Against Withheld Votes % Votes % Votes

361,768,312 99.63 983,283 0.27 1,972,855

May 2012 | Page 15

Resolution 8

Re-election of Mr D C Lindsell as a Director

For Against Withheld Votes % Votes % Votes

350,521,284 96.53 12,228,354 3.37 1,975,436

May 2012 | Page 16

Resolution 9

Re-election of Mr S C Lockett as a Director

For Against Withheld Votes % Votes % Votes

352,260,207 97.00 10,514,000 2.90 1,950,866

May 2012 | Page 17

Resolution 10

Re-election of Mr A G Lodge as a Director

For Against Withheld Votes % Votes % Votes

359,447,359 98.99 3,320,009 0.91 1,950,853

May 2012 | Page 18

Resolution 11

Re-election of Professor D G Roberts as a Director

For Against Withheld Votes % Votes % Votes

361,644,587 99.55 1,186,318 0.33 1,816,432

May 2012 | Page 19

Resolution 12

Re-election of Mr M Romieu as a Director

For Against Withheld Votes % Votes % Votes

350,416,016 96.50 12,290,564 3.38 1,947,841

May 2012 | Page 20

Resolution 13

Re-election of Mr M Welton as a Director

For Against Withheld Votes % Votes % Votes

361,648,888 99.60 1,028,183 0.28 1,963,441

May 2012 | Page 21

Resolution 14

Re-appointment of Deloitte LLP as auditors

For Against Withheld Votes % Votes % Votes

234,134,645 85.29 39,984,329 14.56 90,534,275

May 2012 | Page 22

Resolution 15

Authority to allot relevant securities pursuant to s551 of the Companies Act 2006

For Against Withheld Votes % Votes % Votes

338,414,647 94.74 18,351,528 5.14 7,868,909

May 2012 | Page 23

Resolution 16

Authority to allot equity securities pursuant to s571 of the Companies Act 2006

For Against Withheld Votes % Votes % Votes

348,410,984 98.62 4,399,230 1.25 11,824,681

May 2012 | Page 24

Resolution 17

Authority to make market purchases of Ordinary Shares

For Against Withheld Votes % Votes % Votes

356,951,786 98.26 5,886,546 1.62 1,808,693

May 2012 | Page 25

Resolution 18

Authority to call general meetings by notice of at least 14 clear days

For Against Withheld Votes % Votes % Votes

349,240,380 96.14 13,573,089 3.74 1,820,948

May 2012 | Page 26

www.premier-oil.com May 2012

May 2012 | Page 27

Premier’s performance: 1 Jan 2005 – 31 Dec 2011

50 100 150 200 250 300 350 400 450 500

Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11

Value of £100 invested on 31 December 2004

Premier Oil plc FTSE All- Share Oil & Gas Producers Index

Performance period

Performance period Performance period

Performance period

Deferral period Deferral period

AEP 2005 Deferred Shares AEP 2005 Match (granted 2008) Deferred Bonus Shares 2007 AEP 2008 (50% of award) Absolute TSR of 26% p.a.; NAV element lapsed

Share Plan Performance over period Performance period

Premier’s TSR ranked in the top decile Performance against 2007 scorecard warranted 65% of salary award Absolute TSR of 24% p.a. and change in NAV of 12.5% p.a

May 2012 | Page 28

LTIP: underlying performance

HSES

TRIF (per million man-hours)

0.0 1.0 2.0 3.0 2008 2009 2010 2011

HIPO (per million man-hours)

0.0 1.0 2.0 3.0 2008 2009 2010 2011

FINANCE

Net operating cash flow ($m) Return on Invested capital (%)

8 12 16 20 2008 2009 2010 2011 100 200 300 400 500 600 2008 2009 2010 2011

Earnings per Share ($)

0.2 0.25 0.3 2008 2009 2010 2011

EXPLORATION

Reserves (mmboe)

200 300 400 2008 2009 2010 2011

Reserves replacement (%)

0% 2% 4% 6% 8% 10% 12% 2008 2009 2010 2011

May 2012 | Page 29

Executive Director salary comparison

100 200 300 400 500 600 700 800 Chief Executive Finance Director Other Executive Directors

Sector peers

(Afren, AMEC, Cairn Energy, Enquest, Gulf Keystone, Heritage Oil, John Wood Group, Petrofac, SOCO International, Tullow Oil)

100 200 300 400 500 600 700 800 Chief Executive Finance Director Other Executive Directors

Size peers

(100 FTSE-listed with market caps ranked ±50 around that of Premier)

Upper quartile Median Lower quartile Premier Oil plc Market