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

Annual General Meeting 18 May 2012

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. May 2012 | Page 1

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 2

Over the last 6 years … Over the period, NAV/share CAGR of 14.2% excluding oil price effects May 2012 | Page 3

Production and development forecast Production outlook Huntington (bbls/day) 120,000 Pre-Development Sanctioned Projects Rochelle On Production 100,000 80,000 Solan 60,000 Catcher 40,000 20,000 0 2012 2013 2014 2015 2016 At $100/bbl, expect post tax cash flow of ~$2 billion in 2015 May 2012 | Page 4

Exploration outlook Actual & forecast risked resource additions 2009-2015 (mmboe) 450 Actual cumulative plus possible resources Cumulative risked prospective resource additions 400 Risked prospective resource additions Actual proved plus probable additions 350 300 250 200 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 Actual Actual Actual • Unrisked prospective portfolio of >1.5 billion boe May 2012 | Page 5

What can you expect from Premier? Already in 2012... • Solan – DECC approval • Pelikan, Naga & Dua – Partner sanction • Anoa Deep – A new exploration play beneath Anoa • EnCore Oil – Completed acquisition and Cladhan sale • Finance – Cash/undrawn facilities increased to $1.5 bn Forward plan... • Production – Rising production to 100,000 boepd • Developments – Delivery on time, on budget, operated • Exploration – Enhancing portfolio materiality • Acquisitions – Where we can add value • Cash flow – Increasing to $2 bn per annum May 2012 | Page 6

Resolutions May 2012 | Page 7

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 8

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 9

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 10

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 11

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 12

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 13

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 14

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 15

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 16

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 17

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 18

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 19

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 20

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 21

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 22

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 23

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 24

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 25

www.premier-oil.com May 2012 May 2012 | Page 26

Premier’s performance: 1 Jan 2005 – 31 Dec 2011 Value of £100 invested on 31 December 2004 500 450 400 Premier Oil plc 350 300 250 FTSE All- Share Oil & 200 Gas 150 Producers 100 Index 50 0 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 Share Plan Performance period Performance over period AEP 2005 Absolute TSR of 26% p.a.; Performance period Deferral period Deferred Shares NAV element lapsed AEP 2005 Match Premier’s TSR ranked in Performance period (granted 2008) the top decile Performance against 2007 Deferred Bonus Performance Deferral period scorecard warranted 65% of Shares 2007 period salary award AEP 2008 Absolute TSR of 24% p.a. and Performance period (50% of award) change in NAV of 12.5% p.a May 2012 | Page 27

LTIP: underlying performance Reserves (mmboe) Reserves replacement (%) 12% 400 10% 8% 6% 300 EXPLORATION 4% 2% 200 0% 2008 2009 2010 2011 2008 2009 2010 2011 Return on Invested capital (%) Net operating cash flow ($m) Earnings per Share ($) 20 600 0.3 500 16 400 FINANCE 300 0.25 12 200 100 8 0 0.2 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 TRIF (per million man-hours) HIPO (per million man-hours) 3.0 3.0 2.0 2.0 HSES 1.0 1.0 0.0 0.0 2008 2009 2010 2011 2008 2009 2010 2011 May 2012 | Page 28

Executive Director salary comparison Sector peers Size peers (Afren, AMEC, Cairn Energy, Enquest, Gulf Keystone, (100 FTSE-listed with market caps ranked Heritage Oil, John Wood Group, Petrofac, SOCO ±50 around that of Premier) International, Tullow Oil) 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 Chief Executive Finance Director Other Executive Chief Executive Finance Director Other Executive Directors Directors Upper quartile Median Market Lower quartile Premier Oil plc May 2012 | Page 29