Interim Results Presentation 16 September 2004 Presentation Sir - - PowerPoint PPT Presentation

▶
interim results presentation
SMART_READER_LITE
LIVE PREVIEW

Interim Results Presentation 16 September 2004 Presentation Sir - - PowerPoint PPT Presentation

Aug 18, 2022 43 likes •514 views

Interim Results Presentation 16 September 2004 Presentation Sir David John Introduction John van der Welle Finance and Operations Robin Allan Business Development Summary and Outlook Charles Jamieson Interim Results Presentation | Page 2

slide-1
SLIDE 1

Interim Results Presentation

16 September 2004

slide-2
SLIDE 2

Interim Results Presentation | Page 2

Presentation

Introduction Sir David John Finance and Operations John van der Welle Business Development Robin Allan Summary and Outlook Charles Jamieson

slide-3
SLIDE 3

Interim Results Presentation | Page 3

Finance and operations

slide-4
SLIDE 4

Interim Results Presentation | Page 4

  • Steady production

performance

  • Turnover, operating

profit and operating cashflow

  • Net profit after tax
  • Healthy cashflow:

– Operating cashflow – Net cashflow

  • Strong balance sheet

Financial highlights

35.2 mboed (2003: 35.3 mboed*) All down on a comparative basis due to a weak US$ and more gas in the production mix £14.5m (2003: £12.8m**) £38.6m £5.4m Net cash £15.5m Strong gas demand in Pakistan and Indonesia Lower interest charges Cashflow sufficient to cover all operating and capital expenditure In line with strategy

* comparatives for 2003 are with ongoing operations i.e. assets retained post restructuring ** restated in line with 2003 results

slide-5
SLIDE 5

Interim Results Presentation | Page 5

UK

  • Production 12,000 boepd
  • Successful infill drilling at Wytch Farm
  • Kyle well tie back (October production)
  • Negotiating to extend life of Kyle and

Fife Area fields Indonesia

  • Production 13,100 boepd
  • Offtake greater than DCQ
  • Gas sale negotiations continue

Pakistan

  • Production 10,100 boepd
  • Qadirpur facilities upgrade to 500 mmscfd throughput completed
  • Zamzama phase 2 progressing to gas sales negotiations
  • Kadanwari K14 well to be tied back for production start in November

Mauritania

  • Chinguetti field development approved – first oil Q1 2006

Operational highlights

1H 2003 (ongoing) 1H 2004

10,000 20,000 30,000 40,000 Working interest production

(barrels of oil equivalent per day) Indonesia Pakistan UK

slide-6
SLIDE 6

Interim Results Presentation | Page 6

Profit & loss

Production (mboepd) Realised oil price ($/bbl) Realised oil price (£/bbl) Realised gas price ($/mcf) Realised gas price (£/mcf) Turnover less: share of JV turnover Group turnover Operating costs Amortisation Exploration expenditure written off Gross profit Administration costs Operating profit Operating profit in JV Total operating profit Net interest Exchange gain Profit before tax Taxation Profit after tax Earnings per share - diluted (pence) Half year to 30 June 2003 (Ongoing)

Working interest production Turnover down – more gas production, weaker dollar Unit opex (incl JV) £2.67/boe - up 10% vs

  • ngoing operations mainly

due to fixed costs with reduced production in UK fields Unit DDA (incl JV) 2.96/boe JV represents Pakistan only Reduction in net debt Tax restated for change in method of calculation of

  • verseas tax (per 2003

annual report) Using new consolidated shares

35.3 26.36 16.55 2.98 1.85 £m 83 (11) 72 (14) (18) (4) 36 (4) 32 6 38 (8) 1 31 (18) 13 NA 35.2 31.45 17.28 3.33 1.83 £m 75 (14) 61 (16) (15) (3) 27 (4) 23 10 33 (1) 1 33 (18) 15 17.2 Half year to 30 June 2004

slide-7
SLIDE 7

Interim Results Presentation | Page 7

2004 2003 Excl JV JV Total Total £m £m £m £m Exploration 17 1 18 14 Fields 9

  • 9

10 Other 6

  • 6

6 JV funding * (8) 8

  • 4

24 9 33 34 * Pakistan net payment to Premier by JV in 2004

Cashflow

Net cash flow from operations Net interest Taxation Operating cash flow (after interest and tax) Capital expenditure Disposals Net cashflow Exchange/other Movement in net debt Yetagun interest accrued Opening net cash/(debt) Closing net cash/(debt) 41

  • (13)

28 (24)

  • 4

3 7

  • 4

11

Lower turnover and

  • perating cashflow, partly
  • ffset by reduction in

interest Capital expenditure – increased spend on exploration

Half year to 30 June 2004 (As reported) £m Half year to 30 June 2003 (Ongoing, Incl JV) £m

52

  • (13)

39 (33)

  • 6

3 9

  • 7

16

Half year to 30 June 2004 (Incl JV) £m

  • Operating cash flow covers exploration 2.2x

68 (9) (12) 47 (34) 13 26 6 32 NA NA

slide-8
SLIDE 8

Interim Results Presentation | Page 8

Future field capex programme

20 25 30 35 50

Development CAPEX (£ million)

Averaging £18 million to £32 million pa depending on Tiof /2nd sale

2004 2005 2006 2007 2008 15 10 5 Indonesia 2nd Sale (contingent) Tiof (contingent) Chinguetti Indonesia Pakistan UK 40 45

slide-9
SLIDE 9

Interim Results Presentation | Page 9

Reserves and production

UK Indonesia Pakistan Mauritania Unbooked (2)

Total 2P reserves ~200+ mmboe (1)

  • Booked reserves 175 mmboe:

80% gas; 20% oil 10,000 20,000 30,000 40,000

2004 2005 2006 2007 2008

Working interest production (barrels of oil equivalent per day)

Indonesia 2nd Sale (contingent) Tiof (contingent) Chinguetti Indonesia Pakistan UK

(1) Total reserves defined as booked and unbooked 2P WI reserves (2) Unbooked reserves relate to Indonesia and Mauritania

2009 2010

slide-10
SLIDE 10

Interim Results Presentation | Page 10

Business development

slide-11
SLIDE 11

Interim Results Presentation | Page 11

2004 Business development strategy

Exploration led, commercially driven

  • £25m p.a. exploration expenditure
  • 12 to 18 well programme p.a.
  • 1/3 of wells offer step change growth opportunity
  • Focus on Africa and Asia
slide-12
SLIDE 12

Interim Results Presentation | Page 12

18 month plan

2005 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2004 JUL AUG SEP OCT NOV DEC 2005 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2004 JUL AUG SEP OCT NOV DEC

AFRICA

Mauritania : Tevét A : Capitaine A : Tiof A : Merou A : Tiof B : Tiof C : Exp. Well : Tiof: D : Exp./App. Wells Gabon : Dussafu-1 : Iris-1 : Themis-1 Egypt : Al Amir-1 Guinea Bissau Pakistan : Dumbar : Indus Offshore India : Jaipur-1 : Cachar-1 Indonesia : Gajah Baru-2 : Macan Tutul-1 Vietnam : 12E & 12W Exp. Well : 12E & 12W Exp. Well : 7,8/97 Exp. Well

ASIA

UKCS : Palomino-1

UKCS

2005 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2004 JUL AUG SEP OCT NOV DEC Contingent wells

slide-13
SLIDE 13

Interim Results Presentation | Page 13

Africa – Gabon

Gabon

Dussafu-1

slide-14
SLIDE 14

Interim Results Presentation | Page 14 Dussafu-1 Well Location Mytilus-1 Projected

Africa – Gabon: Dussafu

Dussafu Prospect

slide-15
SLIDE 15

Interim Results Presentation | Page 15

Mauritania

Africa – Mauritania

slide-16
SLIDE 16

Interim Results Presentation | Page 16

Africa – Mauritania: drilling programme

2004 JUL AUG SEP OCT NOV DEC 2005 JAN FEB MAR APR MAY JUN

Exploration Appraisal Chinguetti Development Well Completions Non-interest Operations

Chinguetti-J SEDC Prods SE WI SWDC NDC Banda-D Tevét Capitaine Merou Tiof A Exp./App. Wells Tiof-B

  • Exp. Well

Tiof D Exp./App. Wells DP Rig - SEDC DP Rig – SE WI DP Rig – SWDC DP Rig – NDC Banda-D

STENA TAY RIG WEST NAVIGATOR RIG RIG

Top Holes Tevét, Capitaine Tiof A Tiof C DP Rig – All Top Holes

slide-17
SLIDE 17

Interim Results Presentation | Page 17

MIS20 TWT surface

North

Africa – Mauritania: exploration prospects

Tevét Banda Chinguetti Sotto Tiof Lead 60 N’Dor Capitaine Fantar Merou Lead 100 Tenit 3D Area Bogue

slide-18
SLIDE 18

Interim Results Presentation | Page 18

Africa – Mauritania: Tiof

Tiof West-1 Tiof-1

3D visualisation of Miocene sands draped over structure

  • Brighter colours indicate presence of hydrocarbons

and sands. Their location varies throughout the seismic volume due to the braiding of the channel system

  • Up to 4 appraisals
slide-19
SLIDE 19

Interim Results Presentation | Page 19

Africa – Mauritania: Tevét

Tevét, if successful, would be tied back to the Chinguetti development. Amplitudes at the prospect are similar to those seen at Chinguetti, suggesting the presence of similar reservoir and hydrocarbons.

Banda Chinguetti

3D visulisation of Miocene sands draped over structure

Tevét

slide-20
SLIDE 20

Interim Results Presentation | Page 20 S N

Africa – Mauritania: Capitaine

2km Top Reservoir Depth 10km Top Reservoir Amplitude

slide-21
SLIDE 21

Interim Results Presentation | Page 21

2.5 km Merou

Bright amplitudes in the Miocene section over the Merou structure Salt

E W

Africa – Mauritania: Merou

slide-22
SLIDE 22

Interim Results Presentation | Page 22

NW Gemsa Block, Gulf of Suez Basin Premier equity: 37.5% Operator: Kriti (Vegas)

  • 3D seismic programme acquired
  • Al Amir-1 to spud in December 2004.
  • onshore flat desert terrain
  • well cost under $3m gross
  • targeting prospects of up to 100m bbls
  • block potential > 200m bbls

Africa – Egypt

Egypt

slide-23
SLIDE 23

Interim Results Presentation | Page 23 EAST ZEIT DISCOVERY (Oct 2001) REC : 70 m bbls SAKARA DISCOVERY (June 2003) REC : 80 m bbls

Africa – Egypt: NW Gemsa Block

GAS PIPELINE OIL PIPELINE

Al Amir-1

slide-24
SLIDE 24

Interim Results Presentation | Page 24

Africa – Egypt: NW Gemsa Block

Proposed Al Amir-1 Zeit Bay-1

Top S Gharib Top Belayim Top Kareem Top Rudeis Top Lwr. Rudeis Top Pre-rift

Al Amir-1 will drill a shallow trap and investigate the deeper stratigraphy. A subsequent contingent well may be drilled to test the deep pre-rift.

slide-25
SLIDE 25

Interim Results Presentation | Page 25

Africa – Guinea Bissau

slide-26
SLIDE 26

Interim Results Presentation | Page 26

The results of the Sinapa-2,2z well have significantly reduced the risks

  • f the salt diapir flank play in

Guinea Bissau. 2005 programme will include new 3D seismic acquisition followed by exploration and appraisal drilling.

Sinapa-2,2z

Africa – Guinea Bissau: Sinapa & Esperanca

slide-27
SLIDE 27

Interim Results Presentation | Page 27 Ervas El Linguada Espadarte Espinafre Espargos Encharcada Espetada Empada Sardinha Eirozes Sabayon Solha Sinapa-1

Africa – Guinea Bissau 2005

Sinapa-2,2z

slide-28
SLIDE 28

Interim Results Presentation | Page 28

Asia – Indonesia

Natuna Sea Block A Premier Equity: 28.67% Operator: Premier

  • Gajah Baru-2 appraisal & deep

exploration well supporting existing and potential new gas sales and targeting increased reserves

  • Macan Tutul-1 step-out well moved

to 2005

slide-29
SLIDE 29

Interim Results Presentation | Page 29

Gajah Baru-2 will appraise the Upper and Middle Arang reserves discovered by Gajah Baru-1. Additionally it will appraise deeper Gabus gas and oil discovered by Gajah-1.

Gajah Baru-1 Gajah-1 Gajah-2 Gajah Baru-2

Asia – Indonesia: Gajah Baru-2 location

slide-30
SLIDE 30

Interim Results Presentation | Page 30 Gajah Baru-1 Gajah-1 Gajah-2 Gajah Baru-2

Asia – Indonesia: Gajah Baru-2 location

slide-31
SLIDE 31

Interim Results Presentation | Page 31

Asia – India

slide-32
SLIDE 32

Interim Results Presentation | Page 32

Legend

Premier Block Prospect Oil Field

Asia – India: Jaipur Block

Lakkhi-1

slide-33
SLIDE 33

Interim Results Presentation | Page 33

Asia – Vietnam

slide-34
SLIDE 34

Interim Results Presentation | Page 34

Asia – Vietnam: prospects map

slide-35
SLIDE 35

Interim Results Presentation | Page 35

Asia – Vietnam: Block 7,8/97 seismic

1925 km of new seismic data being acquired using vessel MV Polar Duke

2D seismic May 2004 2D seismic September 2004

slide-36
SLIDE 36

Interim Results Presentation | Page 36

Asia – Vietnam 2005: Block 12E & W

Swan Complex 12W-HA-1x tested at 24 MMscf/d with 829 bc/d. Canary Complex 12-C-1x tested at 8.2 MMscf/d Lark 12-LK-1X recovered 45 barrels of oil from the Upper Oligocene Cau Formation

1557 km of new 2D seismic data planned for acquisition using vessel MV Polar Duke, 2004

Dua Field Dua-1X tested 1540 bopd of 39°API oil from the Mid Miocene Dua Formation

slide-37
SLIDE 37

Interim Results Presentation | Page 37

2005 programme

Taking shape…

  • Mauritania - up to 9 E&A wells (dependent on 2004 programme)
  • Guinea Bissau - up to 3 wells
  • Vietnam - 1 to 3 wells
  • Plus 1 well in each of UK, Gabon, Egypt, Pakistan, India & Indonesia
slide-38
SLIDE 38

Interim Results Presentation | Page 38

18 month plan

2005 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2004 JUL AUG SEP OCT NOV DEC 2005 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2004 JUL AUG SEP OCT NOV DEC

AFRICA

Mauritania : Tevét A : Capitaine A : Tiof A : Merou A : Tiof B : Tiof C : Exp. Well : Tiof: D : Exp./App. Wells Gabon : Dussafu-1 : Iris-1 : Themis-1 Egypt : Al Amir-1 Guinea Bissau Pakistan : Dumbar : Indus Offshore India : Jaipur-1 : Cachar-1 Indonesia : Gajah Baru-2 : Macan Tutul-1 Vietnam : 12E & 12W Exp. Well : 12E & 12W Exp. Well : 7,8/97 Exp. Well

ASIA

UKCS : Palomino-1

UKCS

2005 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2004 JUL AUG SEP OCT NOV DEC Contingent wells

slide-39
SLIDE 39

Interim Results Presentation | Page 39

Summary and outlook

slide-40
SLIDE 40

Interim Results Presentation | Page 40

Summary and outlook

Ingredients for Independents’ success

  • Clear strategy / a good story
  • Resources to play the game
  • Leverage to success
  • Just 1 or 2 successes needed
slide-41
SLIDE 41

Interim Results Presentation | Page 41

Appendix

slide-42
SLIDE 42

Interim Results Presentation | Page 42

Premier – recent history

  • West Natuna – Indonesia

– 1996 – Purchased Anoa block from Chevron for $72 million – 1997/8 – Drilled up gas. Negotiated WNG sale to Singapore. Largest pipeline gas project in SE Asia – 1999 onwards – Development and production operator – 2003 – Sold 38% at profit of nearly 3x net investment as part of restructuring

  • Myanmar

– 1997 – Assumed operatorship on Texaco withdrawal. – 1998/9 – Negotiated GSA and managed $650 million development – 2003 – Sold to Petronas as part of restructuring for $400 million

  • Pakistan

– 1997 – Discovered 2 tcf Zamzama field – 1998 – Premier/Shell partnership – 2001 – Extracted value through sale to KUFPEC - $114 million – 2003 – Further discoveries at Zamzama and Kadanwari

  • Exploration record 1997-99

– Industry survey. 1st in 2 categories - reserves replacement/finding and development costs - large independents

  • Corporate

– 1999 – Petronas/Amerada Hess – $200 million equity injection, SE Asian pipeline gas strategy – 2003 – Restructuring. Petronas/Amerada Hess depart. Myanmar sold. Negligible resultant debt – 2003 – Fusion deal – Mauritania drilling success

slide-43
SLIDE 43

Interim Results Presentation | Page 43

Areas of operation and strategy

  • High impact explorer and

commercial dealmaker

  • Base business –

e.g. 30-50,000 boepd

  • Cycle out/farm down assets

when significant growth potential has been exploited

  • Realise early value

for shareholders

slide-44
SLIDE 44

Interim Results Presentation | Page 44

Production operations – UK

  • Mature production, mainly oil
  • Wytch Farm (picture), BP operated
  • Kyle and Fife area fields
  • UK production ~12,000 boepd, reserves 24 mmboe
slide-45
SLIDE 45

Interim Results Presentation | Page 45

Production operations - Indonesia

  • West Natuna Gas (WNG) project – Premier operated
  • 650km pipeline to Singapore
  • Production commenced 2001 – 27 year gas contract
  • Indonesia production ~13,000 boepd, reserves 79 mmboe
slide-46
SLIDE 46

Interim Results Presentation | Page 46

Production operations - Pakistan

  • Onshore gas – all in production, offshore exploration block (Shell)
  • Bhit (picture) and Zamzama on-stream 2003
  • Long-term gas contracts, in dollars
  • Successful drilling late 2003
  • Pakistan production ~10,000 boepd, reserves 63 mmboe
slide-47
SLIDE 47

Interim Results Presentation | Page 47

Development ops – Mauritania: Chinguetti

  • Development approved May 2004
  • Reserves of 120 mmbbls (Premier share 9.7 mmbbls)
  • Development cost $600 million (Premier share $55 million)
  • First oil Q1 2006 building to 75,000 bopd (Premier share 6,100 bopd)