21st September Interims Presentation PRINT€¦ · Espinafre 70 mbbls 190 mbbls 175 mbbls Sinapa-1...

2006 Interim Results Presentation 21st September 2006

| 2006 Interim Results Presentation

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.


Interim Results Presentation

Highlights Simon Lockett

Financial Results Tony Durrant

Exploration & Appraisal Robin Allan

Production & Development Neil Hawkings


Highlights


Operational highlights

2006 successes on Dua, Lembu Peteng, Macan Tutul, Lukah, and West Lobe, with more wells to follow

• Operated drilling success in Indonesia & Vietnam

• Significant progress on new gas sales in Pakistan & Indonesia

Zamzama, Bhit, Badhra, Kadanwari, Zarghun, Qadirpur, North Sumatra Block A, Natuna Sea Block A

Production up on 2005 full year average (33,235 boepd), tangible progress towards 50,000 boepd target

• Production of 33,521 boepd

Production Profile by Region(boepd)

2006

60000

0

80000

2007 2008 2009 2010

50000

40000

30000

20000

10000

70000

Production Profile(boepd)

2006

60000

0

80000

2007 2008 2009 2010

50000

40000

30000

20000

10000

Potential new projectsBooked reserves

70000

AsiaM/East & PakistanWest AfricaNorth Sea

• Acquisition in North Sumatra with significant upside

110 bcf net undeveloped certified reserves, with a ready gas buyer. Significant potential upside


Financial highlights

• Expenditures on track $50m exploration $100m development

Significant cash inflow in January 2006

• Profit after tax - up 64% to $33.7m

Rising oil and gas prices, stable production

1H 2005 1H 2006

64%

• Healthy cashflow – up 218% to $172.3m

Disciplined approach to expenditure

1H 2005 1H 2006

218%

• Improved balance sheet

Half year net cash position of $43.8m vs. year end net debt position of $26.2m

End 2005 1H 2006

-26.2m

+43.8m


AsiaBuilding on ourNatuna Sea position

• Lembu trend appraisal and Anoa oil finds

• Dua & Swan development studies

• Blackbird exploration well results in Q4

• North Sumatra Development Planning

• Gas sales and Ratnanegotiations ongoing

Asia

Middle East / PakistanEnhancing the Pakistangas business

• Continuing production growth

• New gas contracts and field expansion

• New business focus in the region

Middle East/Pakistan


North SeaReturning to growth• Frøy development plan on track• Applications in UK and Norway licensing rounds• UK Peveril well in 4th Quarter

North Sea

West AfricaBuilding a new core Business• Seeking to optimise Chinguetti development• Tiof development studies• High impact exploration in Guinea Bissauand Congo

West Africa


Financial Results


Production and Income Statement

Working Interest Production (mboepd)Entitlement Interest Production (mboepd)Realised oil price ($/bbl)Realised gas price ($/mcf)

Sales and other operating revenuesCost of salesExploration/New BusinessGeneral and administration costsOperating profit Financial ItemsProfit before taxationTaxationProfit after tax

Prepared in accordance with IFRS

12 months to31 Dec 2005

6 months to30 June 2005

33.328.748.4

3.8

34.830.238.1

3.4

$m149.3(73.7)

(5.7)(9.1)60.8

1.262.0

(41.5)20.5

Highlights

Underlying operating costs per barrelflat at $5.2/bblIncludes $9.2m of exploration write-off principally in Egypt

Effective tax rate of 43% of gross profit

Includes $15.9m of mark-to-market hedging adjustments

Strong gas prices in SingaporeAverage 1% premium to Brent crude

Oil and gas split steady at around 30/70


33.531.066.5

5.3

$m219.6(85.5)(15.8)

(8.2)110.1(18.6)

91.5(57.8)

33.7


Cashflow

Net cash flow from operationsNet interest TaxationOperating cash flowCapital expenditurePre licence exploration costsNet cash flow before financing


$m


$m

223.6(1.3)(50.0)172.3(95.9)(6.6)69.8

93.9(0.1)(39.6)54.2

(62.0)(-)

(7.8)

2006 2005

Development

95.9 62.0

Exploration 28.0

34.0Acquisitions -17.0

39.0

39.9


Balance Sheet

Intangibles

Producing and Development AssetsCash and EquivalentsNet Working CapitalLong-Term DebtProvisionsNet Assets

As at31 December 2005

$m

As at30 June 2006

$m

111.6

570.143.8

(54.8)-

(258.3)412.4

63.9

568.938.55.5

(63.6)(250.5)376.1

Unused facility of $275 million

Favourable movement in working capital dueto cargo delivery schedule

Net cash resources of $43.8 million atperiod end

Vietnam farm-out will complete after Blackbird well


Commodity pricing compared with hedges 2003-2012

Dated Brent Oil($/bbl)

80.00

20.00

100.00

03

70.00

60.00

50.00

40.00

30.00

90.00

04 05 06 07 08 09 10 11 12Year

HSFO Singapore 180($/metric tonne)

450.00

150.00

500.00

03

400.00

350.00

300.00

250.00

200.00

04 05 06 07 08 09 10 11 12Year

Commodity Priceand Forward Curve

Average CapAverage Floor


Financial strategy

• Disciplined exploration spend of $50 million on a pre-tax basis – under review for 2007 in light of E&A success

• Strong balance sheet and unused funding available for development capital and acquisitions

• Fully capturing current oil and gas pricing

• Buyback programme available according to market conditions


Exploration Highlights


Blocks 12E & W Operator – Premier• Dua (spudded 1st May 2006)• Blackbird• Swan commericalisation

opportunities for 2007• Falcon, Peacock and Quit:

follow-on prospects

Dua Structure

12E-CS-1X

Blackbird Structure

Quit

Peacock

Falcon

Swan

Dua

Blackbird

Vietnam

Canary


Dua-1X

12-A-1X

Dua-1XDiscovery

Dua-2X

PremierDua-4X

5km

Vietnam - Dua

PremierDua-5X


• Dua-4x and -4xst intersected gas-bearing reservoirs

• Dua-5x intersected gas and oil-bearing reservoirs

PremierDua-4X & -4Xst

PremierDua-5X

Additional oil and gas discoveries in shallower reservoirs

Vietnam – new Dua

NCS sandstones

NCS carbonates


Indonesia drilling update – Natuna A PSC

Natuna SeaBlock A PSC

• 2006 Success in:

• Macan Tutul-1

• Lembu Petang-1

• Lukah-1

• Planned Ibu Lembu follow-up drilling Q4 2006

Lembu Peteng-1

Lukah-1

Macan Tutul-1


IbuLembu-1

Lembu Peteng follow-up potential

• A new oil and gas trend within tie-back distance to existing infrastructure Lembu

Peteng-1

Lembu Peteng


Exploration – the next 12 months

West AfricaGuinea Bissau: Eirozes-1

Espinafre-1Mauritania : Kibaro-1Gabon : Themis-1

M/East & PakistanPakistan : Anne-1

AsiaIndonesia : Ibu Lembu-1

: 3-4 further wells (commencing September): Kakap

Vietnam : Blackbird-1 : Dua-5x

India : Masimpur-3: Hailakandi-1: Kanchanpur-1

North SeaUK : Peveril

2007JAN FEB MAR APROCT NOV DEC MAY JUN JUL AUG SEP

2006SEP

Appraisal wells

Exploration wells

Contingent Wells

High impact wells


Vietnam – opportunity set

FlamingoMajor high, 3D reprobeing interpreted

SwanPossible well to test gasvolumes in SW of closure

QuitRisky but big potential

BlackbirdIn success case, 3D April 2007,appraisal well April 2008

Falcon & OthersOn trend, follow-up to Blackbird

JayNear field exploration to Dua

Chim DauNear field exploration to Dua

Dua FieldFurther appraisal


Existing Well 12E-LX-1XDrilled outside structure

Premier 12E-CS-1XPlanned at crest

12E-LX-1XThick sands with residual oil;

drilled close to mapped contact

Anticipated Oil Water Contact at

spill-point

Blackbird Prospect – estimated 80 million barrels reserves potential

Vietnam - Blackbird


Indonesia drilling programme - 2007

Lembu Peteng-2

Natuna SeaBlock A PSC

• 3-4 wells are planned for 2007. Contenders are shown

Ibu Lembu

Kakap LembuTenggiling

Ganesha

Tupai


India high-impact wells

Cachar Block

• 2 Tcf gas prospect• Masimpur-1 mobilising for December 2006 spud• Hailakandi-1 & Kanchanpur-1 follow-up wells,

each with high potential

Masimpur AnticlineNW

Primary Target:Oligocene Renji

Formation

Seismic line POC-03-12SE


Pakistan – Anne high impact exploration

Anne-1 EW

• Key well for Indus Delta

• 300 million barrels potential

• Now scheduled for July 2007


Gabon and Congo


Block Marine IX

Highly prospective block, with significant reserve potential.

Premier 58.5% – Operator

Congo high impact exploration

Kitina150 m bbls

Moho110 m bbls

N’Kossa280 m bbls

Frida Prospect


Congo Block IX : Frida Prospect

• Decree authorising award of PSC issued May 19th

• Presidential approval expected in August 2006

• JOA signed by all parties

• Possible drilling end 2007–early 2008

• Estimated reserves >200MMBO

Top Lower Albiandepth map with

Miocene channeldepth overlay


South Gabon Exploration Portfolio

Gabon : Dussafu and Themis PSC’s

Moubenga-1 discovery

Walt Whitman-1 discovery

GMC-1 discovery

Themis Marin PSC• 2005 3D• Rig contracted for 3Q

2007 well

Dussafu Marin PSC• Large oil-prone block• Reassessing existing

discoveries previously regarded as ‘sub-commercial’ at loweroil prices

• Finalising prospects for 2007-8 drilling (subject to rig availability)


• At $50/bbl oil price economics generates $7 NPV/bbl

• Firm drilling programme commencing January 2007

Guinea Bissau high-impact wells

135 mbbls

100 mbbls

180 mbbls

80 mbbls

151 mbbls

230 mbbls

110 mmbbls

Eirozes190m bbls

300 mmbbls

Espinafre70 mbbls

Sinapa-1 Sinapa-2,2z175 mbbls190 mbbls

30 mbbls


North

Eirozes-1Proposed Well

(WD= 120 metres)

Eirozes Prospect: mean reserves 190 million barrels

TopAlbianSand

Salt

South



Espinafre Prospect: mean reserves 70 million barrels

North

Top Albian Sand

Salt

South

Espinafre-1Proposed Well

(WD= 34 metres)



UK exploration - Peveril

Blocks 39/2, 39/7

• Premier share 30%

• Carried interest

• 40m bbl prospect

• Close to Fife infrastructure

• Drilling December 2006

Peveril Prospect


UK exploration - Peveril


Building for the future

• Licensing Rounds – outstanding applications• Indonesia• Egypt• Norway• UK

• Out-of-round applications

• Farm-ins

• Acquisitions


Operational Highlights


Vietnam – moving Block 12 into development


Indonesia - North Sumatra Block A

• Certified 110 bcf (~18mmboe) netdiscovered gas reserves with a ready gas buyer at a good price.

• 20+ exploration prospects, 1.5 tcf+ gross• Partnership with ConocoPhillips, Medco and Japex (Premier Interest 16.67%)

• Low initial entry cost of $17 million


Indonesia – Natuna Sea Block A

Anoa Development – GSA 1

• Existing oil and gas process and export

Wet Gas Area

• Potential for Liquids Development

• Further Appraisal required

Gajah Baru

• Focus of GSA2 Plans

• 500 Bcf of Certified Reserves

• First Gas 2010


Indonesia – ongoing Anoa development

West Lobe

Central Lobe

East Lobe

Anoa Field 3D Reservoir View

• West Lobe development drilling proceeding well

• 67 ft oil column confirmed in Central Lobe area -Potential to significantly increase Anoa oil production

• 100 ft hydrocarbon bearing interval encountered above the main Anoa reservoir

• Tie-in Opportuinity - Macan Tutul

• Further 2007 Exploration Opportunities


Indonesia – Block A drilling plans

JUL2006SEP NOV SEP NOVJULMAYMARJAN

2007

2006 Drilling Programme

West Lobe Wells – Batch Drilled

West Lobe Well Completions

Ibu Lembu

SA-21 WO

Rig on contract to Serica

2007 Drilling Programme

Central Lobe Development and Comp

E&A Well 1

E&A Well 2

West Lobe-5

E&A Well 3

E&A Well 4 (Option)

Indonesia


Kadanwari• Further development drilling to proceed

in 2006 and 2007

Qadirpur• Further plant expansion to proceed• Term sheet agreed for further 100

mmscfd from 2008• Deeper reservoir being drilled

Zamzama• Phase 2 project progressing to plan• 150 mmscfd - first gas in 2007

Bhit/Badhra• GSA awaiting formal signature• First gas in 2008

Zarghun South• Agreement reached on GSA

Pakistan - a continually growing gas business

K18

K17

K16


Mauritania – optimising the Chinguetti development

• Production commenced at ~70,000 bopd, 5,700 bopd net Premier

• Current production 30,000 to 35,000 bopd - complex reservoir architecture

• Reserves under review by Operator

• Further development drilling in Q4 2006 (Phase 2A)

• Additional development wells also being considered for 2007-8 (Phase 2B and 3)


• New seismic acquired and processed

• Geological model constructed

• Reservoir model being built

• Development concept selection under way

• 20-50 mmbbl of reserves

• Development Plan submission mid-2007

• First oil 2010

Norway - progressing the Frøy development

FPSOJack-up with Processsing


Building for the future

• Premier is continually seeking new opportunities to add production growth opportunities to our portfolio via:

• Acquisitions

• License Rounds

• Farm-ins

• During the first half of the year we have been actively pursuing new production growth opportunities


Summary


Strategy

Progress

• Drilling a high quality exploration programme, already yielding results

• Gained Sumatra entry via acquisition

• Norway organic growth starting to deliver

• Delivering growth in existing assets in Pakistan & Indonesia

Strategy

• Targetingproduction growthto 50,000 bopd

• Minimum of 4 high impact wells per annum within disciplined spend

• Acquisitions focuson core areas

• Operating in 4 regional Businesses


5 Year production potential

Production Profile by Region(boepd)

2006

60000

0

80000

2007 2008 2009 2010

50000

40000

30000

20000

10000

70000

Production Profile(boepd)

2006

60000

0

80000

2007 2008 2009 2010

50000

40000

30000

20000

10000

(NB: Only includes discovered hydrocarbons (no exploration success assumed or acquisitions))

Potential new projectsBooked reserves

70000

AsiaM/East & PakistanWest AfricaNorth Sea


Exploration – the next 12 months

West AfricaGuinea Bissau: Eirozes-1

Espinafre-1Mauritania : Kibaro-1Gabon : Themis-1

M/East & PakistanPakistan : Anne-1

AsiaIndonesia : Ibu Lembu-1

: 3-4 further wells (commencing September): Kakap

Vietnam : Blackbird-1 : Dua-5x

India : Masimpur-3: Hailakandi-1: Kanchanpur-1

North SeaUK : Peveril

2007JAN FEB MAR APROCT NOV DEC MAY JUN JUL AUG SEP

2006SEP

Appraisal wells

Exploration wells

Contingent Wells

High impact wells


Look Ahead

• Close out gas sales contracts in Indonesia/Pakistan

• Commercialise Frøy, Dua & North Sumatra

• High impact exploration in Guinea Bissau, Vietnam, India, UK and Pakistan

• Actively target acquisitions in core areas

| 2006 Interim Results Presentationwww.premier-oil.com September 2006

21st September Interims Presentation PRINT€¦ · Espinafre 70 mbbls 190 mbbls 175 mbbls Sinapa-1...

Documents

Transcript of 21st September Interims Presentation PRINT€¦ · Espinafre 70 mbbls 190 mbbls 175 mbbls Sinapa-1...