INVESTOR PRESENTATION // August 2013
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. August 2013 // Page 1
INTRODUCTION TO PREMIER //
Our business model • Growing the underlying value of the business – NAV/share CAGR >10% • Deliver high quality, high return developments – Chim Sáo, Huntington, Catcher, Bream, Sea Lion – FPSOs – West Natuna, North Sumatra – Asian gas position • Acquire in our core areas, existing fields, future developments – Disposal of non-operated/non-core assets • Drill play-opening wells and high impact prospects – Disciplined spend • Maintain balance sheet strength and good liquidity – Initial dividend paid June 2013 • Grow cash flow substantially – Underlying production growth to 100 kboepd and beyond August 2013 // Page 3
Five year track record • Premier has generated impressive growth in all key metrics Five year NAV/share CAGR at >15% at consistent oil prices August 2013 // Page 4
Independent valuations 2P + Sea Lion independent valuations at 10% discount rate • At $85/bbl, $6.5 billion ~£6/share • At $105/bbl, $9.8 billion ~£10/share • Excludes other contingent discoveries and exploration August 2013 // Page 5
Fully funded programme Development capex Funding outlook (US$ million) • Significant growth in cash flow 2500 – $2 billion pa post-Catcher* Standby Funding – Sea Lion 2250 Premier – $2.5 billion pa post-Sea Lion* 2000 • Surplus cash flows 2013-2015* before 1750 discretionary exploration spend 1500 • Gearing position unchanged through to 1250 Sea Lion first oil at $85/bbl 1000 • Forward profile funded by cash flow and 750 facilities down to $65/bbl 500 250 0 2013 2014 2015 2016 2017 * Assumes US$100/bbl August 2013 // Page 6
Outlook • Growing production Rapidly rising production and cash flow (kboepd) • Quality execution of development projects 100+ • Increasingly material and higher 100 impact exploration • Continuing portfolio management 63 • Strong growth in cash flow generation 58 – Commenced cash returns to 40 shareholders A continued focus on growing 2011 2012 2013 Catcher Sea Lion the underlying NAV/share August 2013 // Page 7
BUSINESS UNITS ANALYSIS //
Falkland Islands • Deliver the 300 mmboe Sea Lion project • Exploit the remaining exploration potential in the basin • Acquired 60% interest in Rockhopper’s assets for $231 million cash and $770 million carry • Sea Lion – Concept selection mid-2013 – Project sanction mid-2014 – Generates IRR of >20% at $85/bbl oil • Substantial exploration upside – Up to 3 well progamme with 100-250-750 mmboe resource potential • Attractive fiscal regime with an effective tax rate of 32.6% August 2013 // Page 9
UK Production and development • Full suite of operated exploration, • Run rate > 20 kboepd once Huntington ramped up and Rochelle onstream development and production assets • Run rate >50 kboepd once Solan and Catcher • Next generation of UK development on-stream projects will drive continuing growth – 1st phase of Solan development drilling commenced – Catcher development concept agreed; UK Production first oil timing dependent on FPSO (kboepd) 30 tender process Solan 25 Huntington & Rochelle • Disproportionate increase in cash flows due to Producing UK tax position 20 Exploration 15 • Success at Bonneville on the Catcher licence 10 • Lacewing 5 – successful test of the Triassic play on the Eastern Margin of the CNS 0 2012 1H 2013 2H 2013 FY 2014 August 2013 // Page 10
Norway • Focus on developments which Grosbeak; meet internal metrics Skarfjell extension • Pursue high impact exploration Blåbaer • Actively manage portfolio • Increased equity in Bream to 50% – Assumed operatorship Frøy – Equalised stakes across PL406 (Mackerel) & PL407 (Bream) – Partners are Kufpec and Tullow Oil Luno II • Commercial discussions to develop a central Bream processing hub continue at Frøy • Non-operated discoveries under review • Significant oil discovery at Luno II Mandal High • Mature leads and prospects on Mandal High for drilling – Myrhauk prospect targeted for 2014 drilling August 2013 // Page 11
Pakistan • High returns, low reinvestment – cash cow • Pakistan achieved 1H 2013 production of 15.3 kboepd • Exploration success at K-32 in Q1 2013, to be tied-in by August • Further potential to be tested August 2013 // Page 12
Vietnam • Optimise production from Chim Sáo and Dua oil fields • Acquire seismic over outboard part of Block 121 • Chim Sáo produced 15.2 kboepd 1H 2013 – Addressing power issues which could lead to greater deliverability • Dua on track for first oil in 2014 – Production and pigging flow lines laid in Q1 2013 ahead of future tie in to Chim Sáo FPSO – Forecast average gross production rate of 8-10 kbopd in the first 12 months • Successfully drilled Ca Voi, a frontier exploration well on Block 121 – established presence of deep clastic reservoir rocks and an active petroleum charge Dua pipe lay February 2013 August 2013 // Page 13
Indonesia • Build on existing strong share of the Singapore gas market through development and ongoing exploration activity • 1H 2013 production from Natuna Sea Block A averaged 14.1 kboepd – Total sales capacity increasing with Anoa Phase 4, Pelikan and Naga expected onstream 2013/2014 – Rising market share offsets impact of LNG in Singapore • Block A Aceh project sanction targeting by year-end Anoa phase 4 – Capex estimate of ~$650mm – Matang success adds resources • Kuda Laut and side track to Singa Laut prospect planned for 2H 2013 • Follow up on Anoa Deep discovery – Gross accessible prospective resource ~2 TCF Construction of Pelikan/Naga jackets August 2013 // Page 14
EXPLORATION //
Transforming the exploration portfolio • APA 2012 and Brazil 11 th • Transforming the exploration portfolio, adding higher Round awards added in impact plays with significant follow on potential 2013 • 5/6 exploration wells drilled year-to-date successful – Luno II, Matang, Bonneville, K-32 & Lacewing – Successful testing of Luno II & Matang • Ca Voi established presence of a Working Petroleum System August 2013 // Page 16
2013 exploration drilling programme P50 gross unrisked Risk Equity Q3 Q4 resource (mmboe) Asia Indonesia Tuna Block Kuda Laut & Singa Laut Ocean General 60 High 65 North Sea Norway PL359 Luno II Appraisal TBC Low 35 Rest of World Kadanwari K-36 Weatherford 812 5 Low 15.79 Pakistan Badhra South Deepening-1 38 High 6 SLB Rig-23 Badhra-Bhit Badhra BN-2 SLB Rig-23 8 Low 6 Mauritania PSC C-10 Tapendar TBC TBC 6.23 Stena DrillMax All well timings are subject to revision for operational reasons Firm Wells: Rig Contracted Firm Wells: Rig TBC Contingent Wells Wells to watch August 2013 // Page 17
2013 North Sea exploration Bonneville discoveries • 30 million barrels of STOOIP confirmed Grosbeak; Skarfjell extension Luno II discovery • Success on the south west margin of the Utsira high • Flow rate of 2,044 bpd achieved on test • Appraisal well planned for Q4 2013 Quad 16 Mesozoic Inner Moray Firth Luno II Lacewing discovery • Successful test of Triassic play • Encountered gross column of >100 feet with reservoir Lacewing quality sands Mandal Bonneville High • Post well evaluation work ongoing to establish commerciality Greater Catcher Area • Premier farmed-down prior to drilling August 2013 // Page 18
Luno II – significant oil discovery 1Q 2013 Luno II significant oil discovery Ragnarrock • Success on the south west margin of the Utsira high Luno/Apollo Johan Sverdrup • Tested >2,000 bpd of good quality oil (36°API) PL 359 • Luno II South discovery: 75-130 mmboe gross resource Luno II discovery • Luno II North prospect: 10-40 mmboe gross prospective resource • Appraisal well planned for Q4 2013 BCU Time Map 10km C.I. 100 ms Luno II core sampling August 2013 // Page 19
2013 play-opening well – Ca Voi • Frontier well; First test of the Oligocene play in the Phu Khanh Basin • Established the presence of a Working Petroleum System – Reservoir rocks and source rocks in the Oligocene – Thermogenic gas in the Miocene • Acquire seismic over outboard play to establish whether there are structures capable of holding reservoir quality sands NW 121-CV-1X SW Block 121 Prospects and Leads 121-CV-1 Proposed Surface Swordfish Location Basin Edge Deep Water Leads Leads Area Whale & East Whale 25km August 2013 // Page 20
2013 Tuna Block Kuda/Singa Laut (2H 2013) • Faulted dip closed structure up dip from a proven source kitchen to the east • Low risk for gas, high risk for commercial oil • Gross prospective resource: 30-60-130 mmboe Kuda Singa Laut Laut NW SE Belut Laut-1 Gajah Laut Utara-1 TD 4977m TD 4687m MMU L.Terumbu Depth of Top Oligocene in Gajah Laut Utara Arang Gabus August 2013 // Page 21
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