Asia Exploration Exploration in Asia Building the portfolio and - - PowerPoint PPT Presentation

Asia Exploration

December 2011

Exploration in Asia

• Building the portfolio and knowledge to deliver value
• Play master approach in the Nam Con Son Basin
• Exploiting new plays in Indonesia
• Strategy for organic growth in Asia

December 2011

Premier Oil exploration in Asia Rift Basins

The majority of the worlds petroleum resources are found in 3 basin types:

• Passive Margins: e.g. West Africa / SE Brazil, NW Australia and the Gulf of Mexico
• Fold-belts / Forelands: Western Canada, Columbia, Iran / Iraq / Saudi Arabia and Pakistan
• Rift Basins: e.g. North Sea, SE Asia, onshore Africa and West Siberia

Because of its history and its current position Premier has a competitive advantage in exploring the rift basins of SE Asia.

December 2011

Exploration in SE Asia - Strategy

December 2011

Southeast Asia’s Rift Basins

The continental Tertiary rift basins of SE Asia (in Yellow) formed and evolved over the last 50 MM years in response to regional tectonic forces, especially India’s collision with Eurasia.

Rift Basin Evolution

• 1. Early Rift – Source Rocks
• 2. Late Rift – Reservoirs, Seals
• 3. Post-Rift – Traps, Maturity

December 2011

Premier Oil exploration in Asia Rift Basins

Premier Oil began exploring Asia in 1986 with the B11/27 concession offshore of S. Thailand. B11/27 was located over the undrilled Songkhla and Nakhon Tertiary rift basins.

1986

B11/27

December 2011

Premier Oil exploration in Asia Rift Basins

With the first well in B11/27 Premier Oil discovered the Songkhla oil field. Encouraged by this success, Premier signed two new rift basin blocks in Myanmar, M13 & M14.

1988

Songkhla-1 M13/M14

LEARNINGS

December 2011

Myanmar exploration – Yetagun discovery

On the new seismic data, on the margin the Tanintharyi Basin, out in the open Gulf of Martaban was a tantalizing…

Premier’s first Offshore Myanmar seismic survey - 1990

December 2011

Myanmar exploration – Yetagun discovery 1991

Flat Spot! A direct indication of gas in the subsuface …. A low risk exploration target in a frontier area!

December 2011

Premier Oil exploration in Asia Rift Basins

Cambodia IV Pangkah Halmahera M10

1995

Following the Yetagun discovery Premier expanded it’s Tertiary rift basin holdings into a fourth Myanmar block; M10, a Cambodia block and two Indonesia blocks.

LEARNINGS

December 2011

Premier Oil exploration in Asia Rift Basins

1997

Kakap Cumi Cumi Natuna A

1997

In 1996 Premier secured it’s first operated acreage in Indonesia and in 1997 added the non

• perated Kakap production asset and the Cumi Cumi exploration block, developing a focus

position in the West Natuna Basin.

December 2011

Indonesia – Natuna Sea Block A

Anoa

Natuna Sea Block A, located over the West Natuna Basin contains classic inverted rift grabens. In the 1980s these features were exploited for oil but Premier saw the potential of the Singapore energy market and set about exploring for gas…..

S Naga-1 N Gajah Baru

December 2011

Premier Oil exploration in Asia Rift Basins

NW Natuna 1

1997-1998

In 1997 Premier discovered gas in Gajah Puteri-1 and Pelikan-1. In 1998 Ujung Pangkah-1 discovered oil and gas. A fourth W Natuna block, NW Natuna 1, was added.

December 2011

Indonesia – Natuna Sea Block A

Gas Resources No Certified Gas In 1996 Natuna Sea Block A contained the stranded Anoa Field gas, nominally 476 bcf, plus 3 old exploration wells that had tested gas.

1996

Gas Reserves (2P) 2009 Certified Gas Reserves Anoa Field 1192 BCF Beruang 32 BCF Gajah Puteri 150 BCF Bison 57 BCF Pelikan 158 BCF Naga 137 BCF Iguana 29 BCF Gajah Baru 353 BCF Total 2108 BCF

2002

Natuna Sea Block A Gas Through a combination of exploration and appraisal Premier Oil has built the Natuna Sea Block A gas resources from 476 BCF to

• ver 2.1 TCF. All of this gas

has been commercialized through gas sales to Singapore and Indonesia. This success came about as the result of extensive geological and geophysical

• work. With this experience

and knowledge Premier Oil has become a Basin Master in West Natuna.

December 2011

Premier Oil exploration in Asia Rift Basins

2003

In 2003 Premier sold Myanmar and Pangkah to buy two major shareholders out of Premier. This restructuring freed Premier to grow shareholder value.

December 2011

Premier Oil exploration in Asia Rift Basins

12W 107/03 Tuna Buton – learning’s from Pakistan; stepping stone into East Indonesia under the frontal fold belt theme NSBA 104

LEARNINGS

Using our Tertiary rift basin knowledge Premier acquired interests in two Vietnam blocks, 12W & 07/03. Followed by NSBA in 2005, Tuna and Buton in 2007 and Block 104 in 2008.

2004-Present

December 2011

Exploration in Asia – historic performance

• Starting as a Frontier Explorer in Thailand and

Myanmar, Premier built a position in the region. Premier evolved to a basin-focussed Play Master through exploring for gas to build the West Natuna gas project. The petroleum systems Knowledge gained in West Natuna enabled successful expansion into Vietnam.

• From 1988-2011 58 wildcats have been drilled.
• 17 oil and gas field have been found:

– 15 Commercial fields – 2 under appraisal or being commercialised

• Overall commercial success rate: 30%
• All discoveries are within Tertiary rift Basins
• Premier has discovered 1.3 billion boe (Premier net

500 mmboe) of resources in SE Asia

• Premier has created Value in Asia, and it has been

created from Rift Basin exploration

1400

Premier Discoveries 1988-2011 (gross mmboe)

1000 800 400 200 1988 1992 600 1200 1996 2000 2004 2012 2008

December 2011

Nam Con Son exploration and future potential

December 2011

Natuna: Biawak Besar Natuna: Anoa Deep . Buton: Benteng Aceh: Matang

Blk 07: Silver Sillago Blk 07: Blue Marlin

Aceh: Peudawa Rayeu

Vietnam Block 12W: CS NW

Asia (non NCS)

Asia Nam Con Son Basin

Tuna: Kuda Laut Tuna: Singa Laut

Blk 07: CRT Blk 07: AD Blk 07: Mackerel Blk 07: Cobia Leads Vietnam Block 12W: CS DEEP Vietnam Block 07: CRD NE Blk 07: Stingray Blk 07: Albacore Blk 07: Ca Loc Tuna: Cacing Laut Tuna: Gaja Laut Barat Tuna: Kur Kura

Leads

Total Unrisked: 240 Total Risked : 68

Prospects

Total Unrisked: 152 Total Risked: 38

Mature Prospects

Total Unrisked: 0 Total Risked: 0

Appraisal

Total: 19

Appraise Drill Evaluate

Acquire Licence gate Drill Decision gate Appraisal Approval Gate Project Extension Gate Prospect potential resource mmbo (net unrisked): NAM CON SON QUOTED

Pre- Development

Nam Con Son Basin – exploration portfolio funnel

December 2011

Chim Sao North West

Chim Sao

Zoom

Chim Sao

Line 4070

• Chim Sao Near Field Exploration 2012
• Resource potential 7 to 12mmbo plus upside subject to appraisal

Chim Sao

CSNW Far CSNW NN

Line 3614

Shallow Anomalies associated With CSNW Far Fault

December 2011

Gajah Laut Utara Belut Laut

Silver Sillago CRD NE Blue Marlin AD Deep Mackerel Singa Laut

Top Oligocene Structure Map

CRD Cobia Leads

Key prospects in Tuna and Block 07/03 acreage

December 2011 Silver Sillago Chim Sáo

SW NE NW SE

CS-2X Top NCS Top Basement Top Cau MMU Dua MMU Top Basement Top Cau MDS5

• Similar proximal access to

source package

• Fault seal remains a key risk

Silver Sillago Line Chim Sáo Line

Direct access to Bright Lower-Cau SR package

Chim Sao field vs. Silver Sillago

December 2011

• Similar proximal access to source package
• Fault seal is other key risk
• Direct Hydrocarbon indicators in Kuda Laut

Sing Laut

Top NCS Top Basement T

• p

C a u MMU Dua

Kuda Laut

Chim Sáo

SW NE

CS-2X MMU Top Basement Top Cau MDS5

W E

Singa Laut Kuda Laut

Direct access to Bright Lower-Cau SR package

Singa Laut Line Chim Sáo Line

Chim Sao field vs. Singa Laut

December 2011

Nam Con Son Basin – exploration portfolio funnel

Natuna: Biawak Besar Natuna: Anoa Deep . Buton: Benteng Aceh: Matang Aceh: Peudawa Rayeu

Vietnam Block 12W: CS NW

Asia (non NCS)

Asia Nam Con Son Basin

Blk 07: CRT Blk 07: AD Blk 07: Mackerel Blk 07: Cobia Leads Vietnam Block 12W: CS DEEP Vietnam Block 07: CRD NE

Leads

Total Unrisked: >240 Total Risked :>68

Prospects

Total Unrisked: 152 Total Risked: 38

Mature Prospects

Total Unrisked: 0 Total Risked: 0

Appraisal

Total: 19

Appraise Drill Evaluate

Acquire Licence gate Drill Decision gate Appraisal Approval Gate Project Extension Gate Prospect potential resource mmbo (net unrisked): NAM CON SON QUOTED

Pre- Development Blk 07: Albacore Blk 07: Ca Loc Tuna: Cacing Laut Tuna: Gaja Laut Barat Tuna: Kur Kura

Blk 07: Silver Sillago Blk 07: Blue Marlin Tuna: Kuda Laut Tuna: Singa Laut

December 2011

Indonesia exploration

December 2011

Natuna A PSC Prospect Inventory Review completed. Preparations for drilling Anoa Deep and Biawak Besar in Q1 2012. NSBA & Buton PSC Preparations for drilling Benteng (Buton) and Matang (NSBA) in 2012. New Ventures West Tuna JSA awarded, executing study. Andaman II JSA Approved. Awaiting execution. Eastern Indonesia Frontier basin study Underway. Tuna PSC Drilled Gajah Laut Utara and Belut

• Laut. Confirmed oil source rocks

present. Oil and gas shows provide evidence

• f working petroleum system

elements in both previously un- drilled frontier sub-basins. Oligocene reservoir, seal, & source

• proven. Miocene failed due to lack of

access to hydrocarbon charge.

NSBA PSC (41.67%)

2011 Drilling rig delay

Andaman II JSA (40%)

Approved, awaiting award

Tuna PSC (65%)

Gajah Laut Utara & Belut Laut (2011) P&A with oil & gas shows

West Tuna JSA (100%)

Awarded April 29, 2011 Executing study

Kakap PSC (18.75%)

Seismic reprocessing

Natuna A PSC (28.67%)

2011 Drilling rig delay

Buton PSC (30%)

2011 Drilling rig delay

Indonesia exploration – 2011 activity summary

December 2011

Deltaic system Meandering Gajah Baru field Naga Field Pelikan Field Iguana Field

Distributary Mouth Bars Distributary/Tidal Channel Distributary Channel Dist Channel Crevasse Channel Crevasse Channel

The mouth bar is cut by a younger generation of channels (IFV?)

Opportunity for extension of Delta Plain Stratigraphic Trap Play Opportunity for extension of Delta Front Stratigraphic Trap Play

Ca3 Ca5 Ba12 Pay Seismic Pelikan-1 AI-1X Iguana-1

Seismic Attributes

• f Ma-Ca3 Interval

Fluid Detection Volume – 3D Inversion Arang Gross Depositional Environment Fluid Detection Volume – 3D Inversion

Indonesia exploration – Natuna PSC Biawak Besar play fairway

December 2011

Natuna A PSC Drill Anoa Deep & Biawak Besar (Q12012). Complete post well studies and incorporate into Arang regional play fairways. Prospect maturation for 2013/14 drilling as part of the Pelikan and Naga development drilling campaign. NSBA & Buton PSC Drill Benteng (Buton) and Matang (NSBA). Complete post well studies and incorporate into regional Peutu (NSBA) & Tobelo (Buton) play fairways. Kakap PSC Safely execute 2D seismic acquisition in time frame and budget. New Ventures Complete West Tuna JSA. Execute Andaman II JSA. Leverage 2012 drilling results (Biawak Besar, Benteng, & Matang) for opportunity identification in Natuna A, Buton, NSBA, and surrounding areas. Tuna PSC Completion of post well studies and incorporate into regional play fairways. Prospect maturation for 2013 drilling.

Indonesia exploration – 2012 looking forward

NSBA PSC (41.67%)

Matang Q2 2012

Andaman II JSA (40%)

Execute study

Tuna PSC (65%)

Propspect maturation for 2013 drilling

West Tuna JSA (100%)

Complete study

Kakap PSC (18.75%)

2D Seismic acquisition

Natuna A PSC (28.67%)

Anoa Deep & Biawak Besar Q1 2012 Propect maturation for 2013+ drilling

Buton PSC (30%)

Benteng Q1 2012

December 2011

Asia exploration – growth for the future

December 2011

SE Asia Creaming Curve

• 125 years of exploration in Indonesia, Malaysia,

Thailand, Brunei, Vietnam, Myanmar and Cambodia and Laos.

• 6216 exploration wells found 123 billion BOE of oil

and gas to 2008.

• Two creaming curve trends are discernable, the most

recent from 1987 to the present. The renewed trend is due to gas commercialization, widespread use of 3D seismic, deep water exploration and political changes.

• The number of discoveries (black line) remains

remarkably proportionate to the number of wells drilled (about one discovery for every five wells, on average). Discovery size is currently averaging about 63 MMBOE.

• Predicted Ultimate: 57 billion BOE remains to be

discovered.

130

SE Asia Creaming Curve

Cumulative BOE Discovered (Billions of Barrels) 80 70 30 20 1000 40 90 2000 3000 4000 7000 5000 6000 10 50 60 100 120 110

Exploration in SE Asia – remaining potential

December 2011

Some Significant Discoveries in Last 3 years

• Premier Oil 07-CRD-1X : 100 MMBOE
• Husky Liwan Play : 4 TCF / 670 MMBOE
• BG Qiongdongnan : 2 TCF / 330 MMBOE
• Brunei Shell Geronggong : 300 MMBOE
• Anadarko Badik : 41 MMBOE
• ENI Janggrik : 1.5 TCF / 250 MMBOE
• Genting Kasuri : 1.5 TCF / 250 MMBOE
• ExxonMobil Vietnam Block 118-CVX-2X :

3 TCF / 500 MMBOE ~ 2.5 billion BOE new resources discovered Of these Husky’s, ExxonMobil’s & Premier’s CRD (Oligocene) are new play openers In addition, two other discoveries are considered play opener’s :

• Newfield D/W Sarawak : Extends gas play

further outboard

• Plains Vietnam Block 124 : Basin opener?

Exploration in the Asia Region What’s working?: Many of the recent discoveries have been made by pursuing known petroleum systems into deeper water. Some new areas have also been opened up by transferring known plays to new areas.

Discoveries in New Areas Extensions of existing Areas

PXP Block 124 124-CMT-1X (oil+gas) Newfield Block 2C Paus-1 (D/W gas) Genting Kasuri PSC Asap-1 (gas) Anadarko Nunukan PSC Badik-1 (gas+oil) ENI Kutei Basin Janggrik-1 (gas) BG China Qiongdongnan 22-1-1 (Deep Water gas) Husky PRMB Liwan 3-1-1 Brunei Shell Geronggong-1 (D/W oil) Premier Block 07/03 07-CRD-1X Discovery ExxonMobil Block 118 118-CVX-2X (gas)

Exploration in SE Asia – recent discoveries

December 2011

Exploration in SE Asia - Strategy

December 2011

Old

1 Play Master The areas we know best

• The West Natuna core area will reliably

deliver ongoing incremental value.

• Exploration acreage in E Natuna/NCS

and N Sumatra contain attractive prospects with very significant potential.

• ENV in our focus areas.

Old

Exploration in SE Asia – strategy

December 2011

Old

1 Play Master The areas we know best

• The West Natuna core area will reliably

deliver ongoing incremental value.

• Exploration acreage in E Natuna/NCS

and N Sumatra contain attractive prospects with very significant potential.

• ENV in our focus areas.

Old Old New 2 Knowledge Transfer

Transfer Tertiary rift knowledge to other basins.

• This took us from Thailand into Myanmar,

then Indonesia and then Vietnam.

• Cross fertilization of exploration assets
• The primary strategy for successful

Exploration New Ventures

Exploration in SE Asia – strategy

December 2011

Old

1 Play Master The areas we know best

• The West Natuna core area will reliably

deliver ongoing incremental value.

• Exploration acreage in E Natuna/NCS

and N Sumatra contain attractive prospects with very significant potential.

• ENV in our focus areas.

Old Old New 2 Knowledge Transfer

Transfer Tertiary rift knowledge to other basins.

• This took us from Thailand into Myanmar,

then Indonesia and then Vietnam.

• Cross fertilization of exploration assets
• The primary strategy for successful

Exploration New Ventures

New

3 New Themes & Capabilities Build into new plays and utilize new technologies.

• Seimic inversion techniques
• Anoa Deep basal syn-rift exploration in

Natuna A

• Biawak Besar stratigraphic traps in West

Natuna with ENV in adjacent areas

Old

Exploration in SE Asia – strategy

December 2011

Old New 2 Knowledge Transfer

Transfer Tertiary rift knowledge to other basins.

• This took us from Thailand into Myanmar,

then Indonesia and then Vietnam.

• Cross fertilization of exploration assets
• The primary strategy for successful

Exploration New Ventures

New

4 Transformational Growth Frontier exploration gave Premier major growth with Yetagun. Increasing core maturity pushes us to the frontiers.

• Buton wildcat
• Eastern Indonesia
• Other underexplored areas incl. deep

water Tertiary Rift basins.

New Old

1 Play Master The areas we know best

• The West Natuna core area will reliably

deliver ongoing incremental value.

• Exploration acreage in E Natuna/NCS

and N Sumatra contain attractive prospects with very significant potential.

• ENV in our focus areas.

Old New

3 New Themes & Capabilities Build into new plays and utilize new technologies.

• Seimic inversion techniques
• Anoa Deep basal syn-rift exploration in

Natuna A

• Biawak Besar stratigraphic traps in West

Natuna with ENV in adjacent areas

Old

Exploration in SE Asia – strategy

New

New 4 Transformational Growth

Frontier exploration gave Premier major growth with Yetagun. Increasing core maturity pushes us to the frontiers.

• Buton wildcat
• Eastern Indonesia
• Other underexplored areas incl. deep

water Tertiary Rift basins.

December 2011

Exploration in SE Asia – strategy

• Play Master : Ongoing exploration in our established core

areas, both in existing licences and in future licences nearby.

• Knowledge Transfer : Use our knowledge gained from

successful exploration to find new exploration opportunities in the region.

• New Themes and Capabilities : New life for our existing

assets through the addition of new plays.

• Frontier Exploration : Find new plays in new areas

through knowledge transfer from other regions and detailed basin analysis.

December 2011

www.premier-oil.com December 2011