Investor Presentation February 2013

Transcription

1 Investor Presentation February 2013

2 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. February 2013 Page 1

3 Introduction to Premier Oil Leading FTSE 250 independent E&P company, founded in key business units: UK, Norway, Pakistan, Indonesia, Vietnam and Falkland Islands Exploration assets in Middle East and Africa Current production of ~60, boepd rising to >100,000 boepd Over 700 mmboe of 2P reserves and 2C resources Invest in high quality projects Value-enhancing acquisitions Exploration Market cap of ~$3.2 billion (Feb 2013) Record levels of profit-after-tax and operating cashflow in 2012 February 2013 Page 2 Historic NAV/share CAGR of 14.2% at constant oil prices

4 Operations update February 2013 Page 3

5 North sea and Asia assets February 2013 Page 4

6 Chim Sáo and Dua Chim Sáo Chim Sáo production averaged ~29,000 boepd in 2012 Higher level of facility uptime achieved in 2H Water injection rates are now at 30,000 bpd, providing effective reservoir pressure support Two well supplementary drilling programme into additional reservoirs completed in June and wells tied-in in Q Total well capacity in excess of 40,000 bopd 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 February 2013 Page 5

7 Natuna Sea Block A Gas sales from NSBA averaged 144 BBtud in 2012 NSBA s share of GSA1 at 44.4% against a contractual market share of 36.9% Block A s share of remaining reserves dedicated to GSA1 is estimated to be ~64% Gajah Baru, which is dedicated to GSA2, is performing well with deliverability in excess of 200 BBtud Next phase of development projects (Pelikan, Naga and Anoa Phase 4) progressing to schedule Total sales capacity will increase to 400 BBtud over time Discussions to sell an additional 40 BBtud into the Indonesian domestic market continue February 2013 Page 6

8 Huntington and Rochelle Huntington Rochelle Development drilling completed in August To schedule and on budget Better than expected well results Debottlenecking study underway FPSO arrived on location on 3 October All of the five risers have been installed System testing and commissioning underway First oil anticipated before end of 1Q 2013 with the field expected to produce 25 kbopd after a ramp-up period Subsea pipeline work is complete Rig is on location to conclude the horizontal section of the first of the two development wells ahead of final tie-ins Operator expecting first gas in 1Q 2013 February 2013 Page 7

9 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 April 2013 First oil targeted for Q with an initial production rate of 24,000 bopd FEED Design and Procurement Construction Platform Tan k Drilling Installation, Hook-up and Commissioning February 2013 Page 8

10 Catcher update Premier is operator with 50% equity Development concept agreed among partners in December 2012 Tender processes with FPSO providers and for the subsea facilities FEED are underway Reservoir modelling being updated to optimise subsurface development requirements Design phase expected to be completed in mid-2013 with submission of the FDP to thereafter First oil modelled for early 2016, subject to FPSO contractor discussions FPSO and Subsea Wells February 2013 Page 9

11 Sea Lion Transaction details Farm-in for 60% of Rockhopper s interests in the Falklands completed in October 2012 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 Gross plateau rate of kbopd Capex to first oil of ~$3 billion (purchased FPSO) Subsequent development of satellite fields Targeted schedule Concept Selection in Q Project Sanction in mid 2014 First Oil in Q February 2013 Page 10

12 Fully funded programme Development Funding Dividend, exploration and all existing projects are fully funded at $85/bbl Investment Profile (US$ million) Acquisitions / disposals Exploration expenditure Development Capex Development capex (US$ million) Sea Lion Existing Assets * * Capacity to increase spend on exploration and new development projects at higher oil prices Forward profile funded by cash flow and facilities even at $65/bbl Note: Assumes exploration expenditure of $250 mm pa from *Assumes standby funding is taken up by Rockhopper. Purchased FPSO case. February 2013 Page 11

13 Exploration update February 2013 Page 12

14 Exploration 2012 and vision 2012 Success at Carnaby in the Catcher area, Anoa Deep on Natuna Sea Block A and K-30 and Badhra B North-1 in Pakistan Unrisked prospective resource portfolio increased to 2,524 mmboe (484 mmboe risked)* Increased lead and prospect inventory in the Falklands, Iraq, Vietnam and the North Sea Vision Targeting known geologies (Rift or Frontal fold belts) in existing or new areas Focus on play opening opportunities with significant follow on potential Drill out high impact prospects Building on $2.7 billion of NPV from Premier discoveries (since 2005)** Portfolio increased by ~ 1 billion boe to 2,524 billion boe (net, unrisked) during 2012 * Excludes PL23 and PL24 in the Falkland Islands ** DeGoyler & MacNaughton estimate February 2013 Page 13

15 Transforming the exploration portfolio February 2013 Page 14

16 Asia Block A Aceh 12W 07/03 Tuna Phu Khanh Basin Block 121 Plays to be accelerated Anoa Deep success in 2012 Play opener More than 4 wells planned 2014/15 Block 121 Play opener, high risk Ca Voi prospect to be drilled d in 1H 2013 NSBA High impact prospect inventory Matang currently drilling Kuda Laut and Singa Laut to be drilled in 2H 2013 Ca Duc to be drilled in 1H 2013 February 2013 Page 15

17 Anoa Deep success Anoa Deep (Natuna Sea Block A) Premier 28.67% equity and Operator Anoa North Drilled as an exploration tail to the WL-5 development well Encountered ~300 feet of fractured Lama Sandstones WL Anoa Deep Discovery Lama formation tested and flowed gas 17 mmscf/d f/d through h h a 48/64 inch i h choke h k Estimated total gas in place of bcf The well will be tied-in to the Anoa facility Significant follow-on potential Gross accessible prospective resource ~2TCF Exploration drilling in 2014/2015 Top Lama Depth C.I.=100 feet 1 Km 3km $QRD 'HHS.$& $5 5HGULOO.0 $5 (DVW 5DWX *DMDK 5* (DVW February 2013 Page 16

18 Vietnam Block 121 play opening well Ca Voi (Whale) prospect (Vietnam Block 121*) The Ca Voi prospect is the first test of the Oligocene play in the Phu Khanh Basin High risk well (a true frontier wildcat) with multiple follow-up potential Risk assessment: high (a true frontier wildcat) Gross prospective p resource assessment: mmbo Well planned for 1H 2013 Significant follow on potential * Block Premier 40% equity (Government approval pending) February 2013 Page 17

19 Kuda Laut and Singa Laut Premier 65% equity and Operator Faulted dip closed structure up dip from a proven source kitchen to the east Risk assessment: Low risk for gas (amplitude supported) Moderate to high risk for commercial oil Gross prospective resource estimate: mmboe Well planned for 2H 2013 Kuda Segment NW Kuda Laut Singa Laut Belut Laut-1 TD 4977m Combined Depth Structure Map Kuda Laut Singa Laut 4 km Gajah Laut Utara-1 TD 4687m SE MMU L.Terumbu Depth of Top Oligocene in Gajah Laut Utara Arang Gabus February 2013 Page 18

20 Pushing the plays wider and deeper in North Sea Pushing the Plays Wider Premier drilled five exploration wells targeting the Tertiary sands in the UK Central North Sea Success at Carnaby, within the Greater Catcher Area Tertiary prospect drilling now focussed on the Greater Catcher Area with Bonneville planned to spud in March 2013 Pushing the Plays Deeper Higher impact exploration programme focuses on deeper Mesozoic plays HPHT Triassic test at Lacewing g( (1H 2013); Learnings will be applied to UK and Norway Luno II, high impact prospect (1H 2013) Accelerating high impact play opening prospects and leads Ongoing maturation of the Inner Moray Firth and Mandal High prospects Inner Moray Firth Luno II Lacewing Mandal High Ragnarrock Carnaby Luno/Apollo Johan Sverdrup PL 359 Luno II Prospect 10km BCU Time Map C.I. 100 ms February 2013 Page 19 Lacewing

21 Kenya L10A & L10B 3 distinct play areas on block Half of the acreage covered by 3D Enable the right prospect on the right play to be accelerated 2,535 km 2 of 3D and 1030 km 2D acquired New 2, km 2 3D is being acquired Potential well in 2H 2013 SW NE W E Inboard Reef Play Outboard Turbidite Plays February 2013 Page 20

22 Iraq Exploration SW Approximate position of Block 12 NE Premier 30% equity 8,000 km 2 block in the foreland of the Zagros fold belt up dip from producing fields Multiple stacked reservoirs targeted Gross prospective resource potential in excess of 1 billion bbls Plan to acquire seismic over the block in 2013 and 2014 and drill in 2015 Gravity Map Block 12 February 2013 Page 21

23 Exploration in the Falkland Islands Accelerating maturation of prospects in two distinct plays Extension of play proven by Sea Lion Under explored deeper fairway Working with Rockhopper to drill a minimum of three wells in 2014 S N Late Post-rift (marine) Sea Lion 14/10-9 Early Post-rift lacustrine basin Syn-Rift SOUTHERN AREA NORTHERN AREA February 2013 Page 22

24 2013 exploration drilling programme 2013 P50 gross unrisked Asia Q1 Q2 Q3 Q4 resource (mmboe) Risk Vietnam Indonesia Block A Aceh Matang Century Rig Moderate Tuna Block Kuda Laut & Singa Laut Ocean General 100 Moderate Block 121 Ca Voi Ocean General 120 High Block 07/03 Ca Duc Ocean General 45 High North Sea Norway PL359 Luno II Bredford Dolphin 120 Moderate P1181 Lacewing Maersk Resiliant 58 High P1430 Bonneville WilPhoenix 10 Low Rest of World K-32 Weatherford Low Kadanwari K-36 Weatherford Low Pakistan Badhra South Deepening-1 SLB Rig High Badhra BN-1 SLB Rig-23 8 Low Badhra-6 Parh SLB Rig Moderate Kenya Inboard 3D seismic L10A & L10B Contingent well TBC TBC Mauritania Tapendar TBC TBC All well timings are subject to revision for operational reasons Firm Wells: Rig Contracted Firm Wells: Rig TBC Contingent Wells Wells to watch Seismic acquisition The three key upcoming wells are Luno II, Lacewing and Ca Voi, targeting at least ~100 mmboe of net unrisked prospective resources February 2013 Page 23

25 Outlook February 2013 Page 24

26 What can you expect from Premier? Strong growth in cash flow generation $2.6 billion per annum once Catcher on-stream Higher impact exploration Luno II, Lacewing and Ca Voi 2013/14 programmes in Kenya, Norway and Falklands Continuing acquisition activity Financial strength and access to capital offers continuing opportunities Rapidly rising production and cash flow (kboepd) Dividend commitment Portfolio focussed on value creation Huntington Catcher Sea Lion Historic NAV/share CAGR of 14.2% at constant oil prices February 2013 Page 25

27 February Page 26 February 2013