Investor Presentation December 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. December 2012 | Page 1
Premier today ... is in a stronger position today than ... which is reflected in our first half ever before ... results and recent market updates • Stronger production and resource base • Production up 58% year-on-year; pro-forma resources of 725 mmboe • Portfolio of operated developments will • Solan, Pelikan, Naga and Dua approved; deliver 100,000 boepd Catcher moving forward • Acquisition activity positions us for future • Falkland Islands transaction growth beyond 100,000 boepd • Transforming the exploration portfolio • Prospective resource portfolio increased to 2.7 billion boe • Existing projects, dividend and future • $1.1 billion of cash and undrawn facilities; exploration programme fully funded strongly rising cashflows and profitability Historic NAV/share CAGR of 14.2% at constant oil prices December 2012 | Page 2
Operations update December 2012 | Page 3
Chim Sáo and Dua Chim Sáo • Year-to-date production averaged 28.4 kboepd • Higher level of facility uptime achieved in 2H • Water injection rates are now at 30 kbpd, providing effective reservoir pressure support • Two well supplementary drilling programme into additional reservoirs completed in June and wells tied-in in Q3 • Total well capacity in excess of 40 kbopd Dua • Dua will develop ~10 mmbbls • Prime Minister approval of FDP received in August • Long lead items being procured and contracted • Development drilling to commence in April 2013 • Subsea installation and tie-in in Summer 2013 • First oil 2014 December 2012 | Page 4
Natuna Sea Block A GSA 1 (Anoa) • 1H production at maximum capacity – Phase 4 expansion and Pelikan projects will access additional reserves and raise capacity • Block A’s share of deliveries under GSA1 has averaged 45% year-to-date against a contractual market share of 37% • Block A’s share of remaining reserves dedicated to GSA1 was 64% at start of year (before the Anoa Deep discovery) GSA 2 (Gajah Baru) • Production facility has performed very well • All Singapore demand was met during the 1H 2012 and rates have continued to increase in 2H 2012 Gas Swap Agreement (Gajah Baru) • Discussions to sell an additional 40 BBtud into the Indonesian domestic market continue December 2012 | Page 5
Huntington and Rochelle Huntington Rochelle • Development drilling completed in August • First of two development wells has been drilled to final casing point – To schedule and on budget – Better than expected well results • Horizontal section of the development well expected to – Debottlenecking study underway be completed early 1Q 2013 • Subsea pipeline and umbilical installation underway • FPSO arrived on location on 3 October – Two out of the five risers have been installed • Operator expecting first gas in 1Q 2013 – Carry over work and commissioning underway • First oil anticipated before end of 1Q 2013 with the field expected to produce 25 kbopd after a ramp-up period December 2012 | Page 6
Solan • Premier is Operator with 60% equity • All significant contracts have been awarded – Procurement and fabrication of platform (Burntisland Fabrications) – Heavy lift installation (Heerema) – Subsea tank fabrication (Dry Docks World Dubai) – Drilling rig (Awilco) • Construction of topsides has commenced • Phase 1 development drilling to commence in March 2013 • First oil targeted for Q4 2014 with an initial production rate of 24,000 bopd FEED 2012 2013 2014 Design and Procurement Government Approval First Oil Construction Platform T ank Drilling Installation, Hook-up and Commissioning December 2012 | Page 7
Catcher update Significant licence changes • Premier increased stake to 50% and appointed operator • Strengthened partnership to progress development Concept Selection & Contracting strategy • Partners have agreed concept selection • FEED programmes are expected to proceed shortly, including a funded competitive FEED programme with a shortlist of FPSO providers • Submission of the FDP to DECC is targeted for mid- FPSO and Subsea Wells 2013 • First oil modelled for early 2016, subject to FPSO contractor discussions December 2012 | Page 8
Sea Lion Transaction details • Farm- in for 60% of Rockhopper’s interests in the Falklands • Initial payment of $231 million plus an exploration and development carry of up to $48 million and $722 million, respectively • Fully funded from existing cash, facilities and cash flow; commitment to fund dividend unchanged Development plan • FPSO in 450m water depth; tanker offloading • Associated gas used as fuel or re-injected • 22 producers, 13 water injectors and a gas injector, drilled from 3 subsea centres • Insulated flowlines and risers • HSPs for artificial lift and flow assurance Targeted schedule • Gross plateau rate of 80-85 kbopd • Concept Selection in Q2 2013 • Capex to first oil of ~$3 billion (purchased FPSO) • Project Sanction in mid 2014 • Subsequent development of satellite fields • First Oil in Q3 2017 December 2012 | Page 9
Fully funded programme Development Funding Investment Profile Development capex (US$ million) (US$ million) • Dividend, exploration 1800 1800 Acquisitions / disposals Sea Lion and all existing projects Exploration expenditure Existing Assets 1600 1600 Development Capex are fully funded at * $85/bbl 1400 1400 * 1200 1200 • Capacity to increase spend on exploration 1000 1000 and new development 800 800 projects at higher oil prices 600 600 400 400 • Forward profile funded by cash flow and 200 200 facilities even at $65/bbl 0 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Note: Assumes exploration expenditure of $250 mm pa *Assumes standby funding is taken up by Rockhopper. from 2014. Purchased FPSO case. December 2012 | Page 10
Exploration update December 2012 | Page 11
Exploration 1H 2012 and vision Vision Existing New 1. Known geologies 3. New skills and/or • 1.6 billion boe resources over life of plan, at a finding cost of < $3/boe and/or skills in geologies in Existing Existing existing areas existing areas • Opportunity to invest up to $500mm per annum from 2015 North Sea • Focus on geologies (Rift or Frontal fold belts) in existing or new areas Asia Rest of World • Building on $2.7 billion of NPV from Premier discoveries (since 2005)* and ENB New New 2. Known skills and/or 4. New skills and/or 2012 year-to-date geologies in new geologies in new areas areas • Success at Carnaby in the Catcher area, Anoa Deep on Natuna Existing New Sea Block A and Badhra B North-1 appraisal well in Pakistan 1.6 billion boe of net resource targeted • Unrisked prospective resource portfolio increased to 2,723 mmboe (453 mmboe risked)** – Increased lead and prospect inventory in the Falklands, Iraq and Vietnam – APA 2011, UK deferred 26th Round awards added Portfolio increased by ~ 1 billion boe to 2,723 billion boe (net, unrisked) during 1H 2012 * DeGoyler & MacNaughton estimate ** Excludes PL23 and PL24 in the Falkland Islands and the UK 27 th Round awards December 2012 | Page 12
Transforming the exploration portfolio Evaluate Drill Appraise Leads Prospects Mature Drillable Prospects Prospects Asia Block 121 Silver Singa / Sillago Kuda Laut Indonesia Buton: Benteng Ca Voi Mackerel Vietnam Swordfish Norway and Luno II . Block 12W: CS Cau Matang Bonneville Inner Moray Firth North Sea Herring Norway PL378: Lacewing Grosbeak & Skarfjell Pre- Development Norway PL374S: Blabaer New York K-32 Rest of World Badhra-7 Badhra South Badhra-6 Parh Falkland Islands* Project Extension Appraisal Iraq Gate Approval Gate Drill Decision Gate Peer Review Peer Assist * Excludes PL23 and PL24 in the Falkland Islands Net NPV10 $mm Net EMV10 $mm (shown as circle inside NPV) Acquire Licence Gate <10 <100 >100 >250 <10 >10 >25 >50 December 2012 | Page 13
Asia • Anoa Deep success – Play opener Phu Khanh Basin – More than 4 wells planned Block 121 2013/2014 • Buton Success LEARNINGS – Establish commerciality Block A Aceh & 12W 07/03 Andaman Sea • Matang to be drilled in Q4 2012 Tuna • 2 exploration wells planned in the LEARNINGS NSBA Nam Con Son basin in 2013 • Oligocene learnings transferred to frontier geographies – Andaman Sea JSA Buton – Block 121 in Vietnam December 2012 | Page 14
Ca Voi prospect Ca Voi (Whale) Prospect (Vietnam Block 121) • Premier 40% equity (subject to Government approval) • First test of the Oligocene clastics play in the Phu Khanh Basin – Primary target is the Ca Voi prospect, a four-way dip closed structure below the Mid Miocene Unconformity – The Oligocene syn-rift sands are a proven hydrocarbon bearing reservoir in the region, including Premier’s Nam Con Son and Natuna Fields • Risk assessment: high (a true frontier wildcat) • Gross prospective resource assessment: 40-100-200 mmbo • Well planned for 1H 2013 • Significant follow on potential December 2012 | Page 15
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