Investor Presentation Proactive virtual investor conference 01 - - PowerPoint PPT Presentation

April 2020

01 October 2018

Investor Presentation

Proactive virtual investor conference

Production

April 2020

Production assets overview

Q1 2020 highlights

• Production averaged 74 kboepd

– UK: 50 kboepd – SE Asia: 24 kboepd

• >90% operating efficiency
• No recordable injuries on any

Premier operated sites

• Low emissions rate
• Proposed UK acquisitions announced

P1

Outlook

• Rising production profile

– Increased contribution from tax advantaged UK assets – Stable Asia production

• High value infrastructure led
• pportunities
• Continuous review of operated

assets to minimise emissions

Net debt

$m

SE Asia UK

Operating efficiency1

% 20 40 60 80 100 2017 2018 2019 Q1 2020 Premier (Group) UKCS avg

1 Company estimates, Oil and Gas Authority data

1500 2000 2500 3000 2016 2017 2018 2019

Production

April 2020

UK North Sea

2020 Q1 Catcher performance

• 31 kboepd (net) production
• 90% operating efficiency
• $6/boe field opex (ex. lease costs)

P2

c.$3/bbl premium to Brent realised in Q1 Cash payback reached (Oct 2019)

Catcher plateau rates

kboepd (gross)

Catcher outlook

• Varadero infill well planned for 2020
• Catcher North and Laverda drilling deferred
• 4D seismic acquisition deferred

20 40 60

Sanctioned First Oil 2019 2020F

50 kboepd underpinned by Catcher at plateau rates

Production

April 2020

South East Asia

P3

NSBA, Indonesia (28.7% op)

• 2020 Q1: 14.3 kboepd (net)
• Low opex of $5/boe
• Infill wells identified to

maintain profile

• 48% of 2020 production

hedged at c.$9/mscf Chim Sáo, Vietnam (53.1% op)

• 2020 Q1: 9.4 kboepd
• Low opex of $9/boe
• Ongoing well interventions
• 2021 infill wells deferred

>$5/bbl

• av. premium to Brent

(Chim Sáo 2020 1H cargoes)

60%

GSA1 market share Q1 2020

Cash generative: c.$30 million of free cash flow generated from SE Asian assets in Q1 2020 NSBA production

kboepd (net) 5 10 15 Q2 19 Q3 19 Q4 19 Q1 20

Development

April 2020

Tolmount Area

P4

Tolmount production profile1

kboepd (net, Premier 50 per cent)

• 500 Bcf gross resource
• 50 kboepd gross peak rates
• Modest capex; low opex
• Partnership with Kellas who

are partially funding the capex

• Original schedule for first gas

by year-end 2020

• Significant upside within the

Greater Tolmount Area

– Tolmount East, Mongour discoveries – Tolmount Far East – Initial results from 4D seismic survey very encouraging

• Potential acquisition of

additional 25 per cent interest from Dana

1 Company estimates

Tolmount topsides pre-commissioning Tolmount jacket roll up achieved in Dec 19 5 10 15 20 25 30 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Tolmount Tolmount East

Development

• 160-300 BCF gross

resource (P50-P10) including Mongour

• FEED studies underway

for subsea and platform concepts

• Designed for electric

power

• Project sanction

targeted 2020 2H

• Extends Tolmount

plateau production

• 250 mmbbls gross
• Conventional FPSO and

subsea development

• FEED completed
• Technical work now

paused with work done to date being fully documented

• Reduced team to

progress regulatory and financial matters

• Transaction

documentation with Navitas being progressed

• 100 mmboe gross

resource

• HoT agreed with

Zarubezhneft

• Premier carried for two

appraisal well campaign planned for 2021

• MoU signed for sale of

Tuna gas to Vietnam

• Preparation of net zero

development plan underway

April 2020

Development asset review

P5

Tolmount East Area Sea Lion Phase 1 Tuna discoveries Block 7 Zama oil field1

• 810-970 mmbbls gross

resource (P50-P10)

• Simple, conventional

development plan

• Long life plateau of

120 kbopd (gross) to 2040+

• Robust economics: PSC

regime

• Unitisation and sales

process ongoing Premier, 50% op Premier2, 40% op Premier2, 50% op Premier, 25% non-op

1 Extends into neighbouring block which is 100% owned by Pemex 2 Working interest, assuming proposed farm outs

Development

April 2020

Development asset review – a Net Zero Commitment

Low Carbon by Design

• Measuring, managing and

minimising Premier’s emissions

• Emissions Hopper approach
• Best Available Technology

Carbon Neutral by Commitment

• Nature-based offsetting in Premier’s

geographies

• All operated developments will be

Carbon Neutral (Scopes 1 and 2)

• Premier’s activities will be:

– >65% net zero by 2025 – 100% net zero by 2030

P6

Reducing Scope 1 emissions

• Use of normally unattended facilities
• Removal of CO2 from the gas stream for re-injection
• Minimisation of all venting and flaring
• Electrification of platforms, vehicles etc where possible
• Minimisation of offshore support vessels

Reducing Scope 2 emissions

• Efficiently generate our own power

Advocacy and supported initiatives

GHG intensity

kgCO2e/boe

10 15 20 25 2017 2018 2019

Exploration

April 2020

High value exploration portfolio

Area A, Alaska North Slope

• Charlie-1 well drilled in Q1
• Extended Brookian play south but

encountered gas condensate Block 717, Brazil

• Berimbau/Maraca targeting 100-600

mmbbls (gross, P90-P10)

• Well deferred to 2021

Mexico

• Block 30: Wahoo flat spot similar to

Zama; drilling deferred to 2022

• Burgos Blocks 11 & 13: 3D seismic

reprocessing Andaman Sea, Indonesia

• 3D survey completed with highly

encouraging initial results

• Timpan (Andaman II, PMO 40% op)

now planned for 2022; targeting 1.5 TCF of gross unrisked resource

P7

Timpan DHI

Timpan-1

Multi-TCF

gross potential

Wahoo prospect, Block 30, Mexico Expanded position in South Andaman Sea, Indonesia

>300 mmbbls

On block gross resource potential

Flat Spot Targeting under explored plays in proven hydrocarbon basins

Summary

April 2020

Forward production profile

P8

Indicative production profile

kboepd

• Rising, highly cash generative production base
• Near to medium term growth from UK assets; South East Asia stable
• Longer term growth from new international projects
• Excludes contribution from proposed UK North Sea acquisitions

Base profile Awaiting approval Growth projects

Summary

April 2020

7 year balanced capital allocation (2020 to 2026)

P9

10% 10% 100% 25% 45%

At $65/bbl, 40p/therm the business will deliver

• Positive free cash flow in all years
• Production averages >100 kboepd from 2021
• Covenant level of <1x by period end

2018-2019 allocation

• Debt reduction 40%
• Producing assets / abex 20%
• New projects 25%

Discretionary Non-discretionary

10% Reinvestment in new projects will be measured against shareholder returns

Summary

25 50 2020 budget 2020F (mid-March) 100 200 300 400 500 2020 budget 2020F (mid-March) Abex P&D E&A April 2020

Priorities in today’s environment

Maintain safe and responsible operations

• Focus on health and safety of our people

Maximise operating cash flow

• 30% of 2020 production hedged at $60/boe
• Non safety critical maintenance deferred
• Opex reduced

Minimise expenditure

• Ability to flex and control capex as operator
• Production capex with quick pay back prioritised
• Sea Lion put on hold, exploration deferred

Preserve liquidity

• $465 million of cash & undrawn facilities
• Limited drawing on current facilities anticipated

this year

Manage forward covenant profile, address 2021 credit maturities

P10

FCF breakeven reducing to below $30/bbl 2020F capex reduction

• c. $100 million

Capital expenditure

$m

2020 FCF breakeven price

$/bbl

Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR T: +44 (0)20 7730 1111 E: premier@premier-oil.com www.premier-oil.com

April 2020