PRESENTATION // June 2013 Forward looking statements This - PowerPoint PPT Presentation

INVESTOR PRESENTATION // June 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. June 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 payable June 2013 • Grow cash flow substantially – Underlying production growth to 100 kboepd and beyond June 2013 // Page 3

Five year track record • Premier has generated impressive growth in all key metrics Five year NAV/share CAGR at >15% at constant oil prices June 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 June 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 June 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 65-70 • 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 June 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% June 2013 // Page 9

UK Production and development • Full suite of operated exploration, • Run rate of 25 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; first oil timing dependent on FPSO tender process • Disproportionate increase in cash flows due to UK tax position Exploration • Success at Bonneville on the Catcher licence • Lacewing, Premier’s first HPHT well, drilling * Assumes 4Q 2016 for Catcher June 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 40% – Project sanction early 2014 Frøy – First oil 2017; initial production run rate of 35 kbopd • Commercial discussions to develop a Luno II central processing hub continue at Frøy Bream • Non operated discoveries under review • Significant oil discovery at Luno II • Mature leads and prospects on Mandal Mandal High High for drilling – Myrhauk prospect targeted for 2014 drilling June 2013 // Page 11

Vietnam • Optimise production from Chim Sáo and Dua oil fields • Drill potentially play opening Ca Voi well • Chim Sáo produced 15.1 kboepd Jan to April 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 1Q 2013 ahead of future tie in to Chim Sáo FPSO – Forecast average gross production rate of 8-10 kbopd in the first 12 months • High impact Ca Voi well planned for June • Silver Sillago and CRD appraisal planned for 2H 2013 Dua pipe lay February 2013 June 2013 // Page 12

Indonesia • Build on existing strong share of the Singapore gas market through development and ongoing exploration activity • Jan to April 2013 production from Natuna Sea Block A averaged 12.3 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 expected 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 June 2013 // Page 13

Pakistan • High returns, low reinvestment – cash cow • Pakistan achieved production of 15.9 kboepd over the first four months of 2012 • Exploration success at K-32 in Q1 2013, to be tied in before year-end • Further potential to be tested June 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 • All four exploration wells drilled year-to-date successful – Luno II, Matang, Bonneville & K-32 – Successful testing of Luno II & Matang • Lacewing drilling; Ca Voi to spud shortly June 2013 // Page 16

2013 exploration drilling programme Q2 Q3 Q4 Asia Block 121 Ca Voi Ocean General Vietnam Block 07/03 Ca Duc Ocean General Ocean General Tuna Block Kuda Laut & Singa Laut North Sea UK P1181 Lacewing Maersk Resiliant Rest of World Kadanwari K-36 Weatherford 812 Pakistan Badhra South Deepening-1 SLB Rig-23 Badhra-Bhit Badhra BN-2 SLB Rig-23 Kenya Contingent well Mauritania Tapendar All well timings are subject to revision for operational reasons Firm Wells: Rig Contracted Four upcoming high impact wells targeting ~125 mmboe Firm Wells: Rig TBC of net unrisked prospective resources Contingent Wells Wells to watch June 2013 // Page 17

2013 North Sea exploration Bonneville discoveries • 30 million barrels of STOOIP confirmed Grosbeak; Skarfjell Luno II discovery extension • Success on the south west margin of the Utsira high • Flow rate of 2,044 bpd achieved on test Lacewing (1H 2013) • HPHT Triassic test; learnings will be applied to UK Quad 16 Mesozoic and Norway Inner Moray Firth Luno II • Gross prospective resource: 24-58-110 mmboe • Critical risks: trap effectiveness and reservoir quality • Well currently drilling; results expected in July Lacewing Mandal Bonneville High Greater Catcher Area Lacewing June 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 expected Q4 2013 BCU Time Map 10km C.I. 100 ms Luno II core sampling June 2013 // Page 19

2013 play-opening well – Ca Voi • First test of the Oligocene play in the Phu Khanh Basin; well planned for June 2013 • Gross prospective resource: 35-120-190 mmboe • A successful Whale (Ca Voi) well de-risks multiple leads • Unexplored intra-basinal highs in the deep water part of Block 121 • Block resource potential >1 bnboe 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 June 2013 // Page 20

2013 Nam Con Son programme Silver Sillago (Ca Duc) (2H 2013) Ca Duc • Analogous to Chim Sao NW SE • Critical risk: fault seal Top NCS • Gross prospective resource: 20-45-105 mmboe MMU Kuda/Singa Laut (2H 2013) • Faulted dip closed structure up dip from a proven source kitchen to the east Dua • Low risk for gas, high risk for commercial oil • Gross prospective resource: 60-100-140 mmboe Top Cau Top Basement 2km 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 June 2013 // Page 21