Oil Capital Investor Conference May 2017 Forward-looking - - PowerPoint PPT Presentation

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Oil Capital Investor Conference May 2017 Forward-looking - - PowerPoint PPT Presentation

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Oil Capital Investor Conference May 2017 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

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Oil Capital Investor Conference

May 2017

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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 2017 | P1

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Agenda

Overview Exploration – Mexico Outlook Tony Durrant Dean Griffin Tony Durrant

May 2017 | P2

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Production overview

May 2017 | P3

Largest 5 fields account for c. 70% of production

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Catcher – under budget, start up 2017 2H

  • 2016 subsea installation programme

successfully completed

  • 10 wells completed to date with excellent
  • perational performance
  • Commissioning of FPSO underway
  • On schedule for 2017 first oil
  • Capex reduced by 29% to $1.6bn

May 2017 | P4

Varadero Catcher Burgman

2000 4000 6000 8000 10000 12000

CCP3 CTP1 BP3 BP5 VP2 VP3 VP4

Net pay length (ft)

Net pay length - Producers

Predicted cumulative NPL Actual cumulative NPL

Net pay encountered above prognosis

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Indicative metrics

  • ~ 1 Tcf potential (GTA)
  • Capex ~$550m
  • Designed for daily peak

production of 300 mmcfd

  • First gas 2020

Tolmount – next phase of growth

  • Most significant discovery in SNS since 1997
  • Concept selected Q1

– Standalone, normally unmanned – 4 platform wells – 48km x 20” gas export to onshore

  • FEED contracts awarded
  • Potential 3rd party infrastructure funding
  • FID targeted for Q1 2018
  • Significant upside at Tolmount East and

Tolmount Far East

High return project robust down to low gas prices

Drillex 25% Owners 14% Platform 16% SURF 19% Onshore terminal 27%

Capex Split

May 2017 | P5

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Portfolio potential

Catcher Tolmount Tuna Sea Lion

Cash flows prioritised towards net debt reduction and selective investment

Exploration

May 2017 | P6

700 mmboe of discovered but undeveloped reserves & resources

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Premier’s exploration footprint

  • Two core focus areas:

– Mexico (Sureste) – Brazil (Ceara)

  • Exited/exiting positions

in Iraq, Kenya, Norway, Pakistan, SADR, UKCS (ex-E.ON) & Vietnam

  • Provide legacy portfolio

management and exploitation support to the business units

28% 23% 2% 47% UK Asia Pakistan Falklands

2016 Production YE2016 Reserves & Resources

46% 43% 11%

May 2017 | P7

71.4 kboepd 835 mmboe

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Why Mexico?

Sureste Veracruz Tampico- Misantla Campeche Mexican Ridges 61 bnboe Sureste 14 bnboe 2.0 bnboe 0.9 bn boe 0.3 bn boe 0.4 bn boe 0.5 bn boe Salina del Bravo & Perdido

  • il

gas

Area proportional to discovered resource

Burgos

Burgos

  • Onshore, mature
  • Gas, minor oil
  • Main play: Paleogene Deltaics

Burgos

  • Onshore, mature
  • Gas, minor oil
  • Main play: Paleogene Deltaics

Tampico - Misantla

  • Onshore, mature
  • Oil + assoc. gas
  • Main plays: Jurassic /

Cretaceous carbonates Tampico - Misantla

  • Onshore, mature
  • Oil + assoc. gas
  • Main plays: Jurassic /

Cretaceous carbonates Veracruz

  • Onshore, mature
  • Gas, minor oil
  • Main plays: Cretaceous

carbonates; Tertiary deep water sandstones Veracruz

  • Onshore, mature
  • Gas, minor oil
  • Main plays: Cretaceous

carbonates; Tertiary deep water sandstones Sureste (offshore)

  • Shallow to deep water,

emerging

  • Oil +assoc. gas
  • Main play: Cretaceous /

Jurassic carbonates; Neogene clastics

  • Salt plays

Sureste (offshore)

  • Shallow to deep water,

emerging

  • Oil +assoc. gas
  • Main play: Cretaceous /

Jurassic carbonates; Neogene clastics

  • Salt plays

Mexican Ridges

  • Slope & deep water, Frontier
  • Possible Gas (Tertiary SR),

but unknown

  • Main Play: Paleogene &

Neogene DW Clastics Mexican Ridges

  • Slope & deep water, Frontier
  • Possible Gas (Tertiary SR),

but unknown

  • Main Play: Paleogene &

Neogene DW Clastics Campeche

  • Slope & deep water, frontier
  • Probably mixed oil and gas
  • Main play: Neogene DW

Clastics

  • Salt plays

Campeche

  • Slope & deep water, frontier
  • Probably mixed oil and gas
  • Main play: Neogene DW

Clastics

  • Salt plays

Perdido

  • Deep water, emerging
  • Oil + assoc. gas
  • Main play: Neogene and

Paleogene clastics

  • Salt plays

Perdido

  • Deep water, emerging
  • Oil + assoc. gas
  • Main play: Neogene and

Paleogene clastics

  • Salt plays

May 2017 | P8

Basins/Plays -discovered resource (source IHS)

  • Premier screening high-graded Sureste basin as best

fit for entry

Sureste

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Energy sector reform

  • Opening of a high potential energy sector to foreign investors after 78 years
  • f state monopoly
  • Established a clean and transparent process with an independent regulatory

body CNH

  • Extensive modern datasets available for a reasonable cost across the

majority of the plays

  • CNH and SENER (Ministry) are listening to the industry and are continuing to

improve both the licencing process and terms

  • No signature bonuses and reduced local content requirements
  • Bid government take and defined work programme
  • Large tracts of unlicensed acreage in proven basins with regular tender

process

May 2017 | P9

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Well and seismic data available at low cost

  • Over 100,000 km2 of 3D

data available – majority is modern

  • 3D datasets and wells can

be purchased as part of the bid round packages

  • Facilitates ability to

compete technically and at low cost

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Sureste basin licence position

May 2017 | P11

Block 7

6 8 7

Block 2

Offered in Round 1.4

6 7 8 9 10 11 12 13 14

  • Successful entry (10% carried) into Blocks 2 & 7 in Q3 2015
  • Increased equity to 25% (paying) in Block 7, ahead of Zama well
  • Ability to grow – plan to participate in upcoming Licence Round 2.1 on 19 June
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Block 7 Zama prospect (Premier 25%)

ENSCO 8503 Flat Spot

  • Talos operate
  • Expected spud date by end of May using the

Ensco 8503 rig

  • Low risk, 100-500 mmbbl prospect in 165m of

water

full stack reprocessed seismic data in depth E W Zama-1 Well

May 2017 | P12

Good conformance of seismic amplitude with structural contours salt salt 3D view of the Zama Prospect showing top structure map and seismic amplitudes of the target interval Zama-1 Well

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Financing and commercial initiatives to bring Sea Lion to next phase in 2018

2017 – targets

Maintain operating efficiency levels; Meet guidance of 75 kboepd (excluding Catcher)

Production Cost Base Non-core disposals Catcher Tolmount Exploration

Targeting further reductions in opex and G&A costs Realise >$100m from non-core disposals Deliver first oil in 2017; build on development drilling programme to optimise forward production; further cost reduction Progress FEED and commercial discussions for Premier Board approval in Q4 Identify and test best prospects eg Mexico (2017)

Future Growth

May 2017 | P13

Net debt reduction

Positive net cash flow, post disposals

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Questions

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Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR Tel: +44 (0)20 7730 1111 Fax: +44 (0)20 7730 4696 Email: premier@premier-oil.com www.premier-oil.com May 2017