Jan 1, 2018 - First oil delivered on. 23 December. On schedule and c30% below budget. Tolmount. 2017. HoT signed with in
Investor Presentation January 2018
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.
January 2018 | P1
Executive Summary
2017 – a year of strong delivery Production
Cost Base
Disposals
Catcher
2017
2017
2017
2017
Production 75.0 kboepd, in line with guidance
Opex of $16.5/boe; FY capex $305m below revised guidance
Wytch Farm completed; Pakistan and ETS pipeline sales announced
First oil delivered on 23 December. On schedule and c30% below budget
2018 Target
2018 Target
2018 Target
2018 Target
Complete Pakistan and ETS sales; other processes ongoing
Deliver production ramp up to 60,000 bopd; complete wells
Guidance 80-85 kboepd (Catcher ramp up and 2017 disposals)
Tolmount
FY guidance of opex c$17-18/boe and capex (ex-Abex) of $300m
Sea Lion
Exploration
Net Debt Reduction
2017
2017
2017
2017
HoT signed with infrastructure partner; draft FDP submitted to OGA
Negotiating funding packages; LOI signed with contractors
World class oil discovery at Zama-1, Mexico
Positive cash flow in the year; deleveraging underway
2018 Target
2018 Target
2018 Target
2018 Target
Progress for FID in 2018
Progress financing, fiscal and commercial initiatives
Appraise Zama in H2/early 2019 and define development plans
Generate positive net cash flow and target debt reduction to 3x Net Debt/EBITDA
January 2018 | P3
Production overview
Largest 5 fields account for c. 70% of production
January 2018 | P4
Development portfolio
>800 mmboe of discovered but undeveloped reserves and resources
January 2018 | P5
Delivering on our strategy Acquisitions
• Opportunistic acquisitions
Stakeholder Returns Production
Development
Exploration
• 75 kboepd
• Operated • FPSO’s • Partner-funded
• Proven basins • Under drilled
Costs
Value
• c$16/bbl
Debt Reduction Portfolio Management
• Disposals – realising value
January 2018 | P6
Future plans Portfolio Management – Acquisitions
Portfolio Management – Disposals
• Disposals by majors • Tax optimisation
• Non core assets • Mitigating risk Stakeholder Returns
Production
Development
Exploration
• Continuing growth • Reserve life >10 yrs
• • • • •
• High value, near field • Material upside in Mexico and Brazil
Operating Costs
• $17-$18/bbl
Catcher Tolmount Sea Lion Zama Tuna
Value
Debt Reduction Balance Sheet Management
• Free cash flow 2018-2022 reducing debt • Net debt : EBITDA 30 % longer than forecast – Initial production delivery rate per well >40% higher than predicted on average
• Improved production profiles anticipated of c.60 kboepd • Review of FPSO capacity underway
Catcher
Burgman
Improved production profile anticipated
Plateau production up 20% on sanction January 2018 | P17
Tolmount – infrastructure partnership • Partnership with Dana Petroleum and CATS Management Ltd (1) • Dana and CML will jointly own: CML
PMO 19%
31%
– platform – export pipeline
Capex Split
• Tolmount gas will use the facilities – LoF tariff
• Premier’s share of project capex $100m • Premier retains 50% equity interest in the licence • Excellent project economics – IRR >50% at gas price of 30p/therm
(1) an Antin Infrastructure Partners portfolio company (2) Based on plan where one well is on-stream pre-1st gas
High return project robust down to low gas prices
Tolmount – progressing on schedule for FID in 1H 2018 • Initial phase: targeting 540 Bcf resources • Peak production capacity 300 MMscfd • FEED contracts awarded; engineering underway • Evaluation of proposals received for major project scopes (including platform and pipeline) underway • Draft FDP submitted to OGA • Timing: – FID 2018 – First gas 2020
Dimlington Terminal >1 bcf gas processing capacity, 600 mmscfd installed compression capacity plus additional condensate processing Tolmount
Perenco Dimlington SNSPS (Cleeton / Ravenspurn) West Sole (connected to Perenco Easington) Tolmount
Centrica Easington Rough & York Gassco Langeled Ormen Lange
Subsurface Depletion Plan • 4 initial development wells in Tolmount • Future phases TE , TFE & Mongour Offshore Facilities • NUI platform with 6 slots / 4 wells • Offshore PWT treatment • Riser / J-tube pre-investment for area development • 20” x 48kn Gas Export pipeline • 3” MeOH (and CI) import pipeline Host Terminal • Dimlington host • New reception & condensate processing • Shared gas processing & compression January 2018 | P19
Tolmount – future phases planned Tolmount East • Subsea tie-back or small platform • 2019 well planned to confirm resource Tolmount Far East • Subsea tie-back or small platform to Tolmount or Tolmount East
Tolmount area ~ 1 Tcf
Tolmount Far East
Mongour
Tolmount East
Mongour • Subsea tie-back or extended reach well from Tolmount East 3rd party business potential • A new hub with 20+ year life
Tolmount
Indicative production profile SW
NE
42/28d-12
Tolmount Far-East
Gas water contact
Tolmount
January 2018 | P20
Tolmount East
Zama-1 oil discovery - volume estimates W
E
Zama-1 Well
Full stack reprocessed seismic data in depth
Flat Spot
• Major hydrocarbon discovery in shallow water, offshore Mexico • Initial gross oil in place estimates are 1.2 – 1.8 Bnbbls (unrisked P90-P10 resources of 400-800 mmboe), exceeding pre-drill estimates • Contiguous gross oil bearing interval of over 335m, with over 200m of net oil bearing reservoir • Light oil : 28-30° API
ENSCO 8503
Gross oil bearing interval to scale
January 2018 | P21
Good conformance of seismic amplitude with structural contours
Zama – illustrative development scenario Location of Zama discovery Indicative development metrics Resources Zama Hokchi Amoca
400-800 mmboe1
Daily peak production
100-150 kbopd
Capex
+/- $1.8 billion
Appraisal
2018-19
First oil
2022-23
(1) Including the extension onto the neighbouring block
Potential to leverage Mexican fabrication capability
Block 7 prospect map
Zama
January 2018 | P22
Sea Lion, Falkland Islands (60%, operator) Project status • FEED substantially completed • Breakeven reduced to c$45/bbl − Capex to first oil reduced to $1.5bn − Field opex reduced to $15/bbl − Indicative FPSO cost of $10/bbl (LoF) • LOIs signed with contractors
Annual average oil rate (mbopd)
Outlook • Positive commercial and fiscal engagement with FIG • Positive engagement with contractor market and senior debt providers • Licence extension to May 2020
January 2018 | P23
160 Phase 2 Phase 1
140 120 100 80 60 40 20 0
0
5
10 15 Years from first production
20
Tuna, Indonesia (65%, operator) Highlights • Discovered in 2014 by the Singa Laut-1 and Kuda Laut-1 wells >90 mmboe • Evaluation of potential development scenarios ongoing • Government agreement signed with Vietnam and Indonesian governments re: connection to existing infrastructure in Vietnam • Granted 3 year extension to exploration period of licence
January 2018 | P24
Ceara Basin, Brazil – exploration • Largest acreage holder in the Ceara basin • 4,000 km2 of fast-track seismic data across all 3 blocks received in 2016 • Final depth migrated broadband seismic data received in April 2017 • Well locations to be selected during 2017 • Licence extensions received for all 3 blocks • Drilling operations planned for 2019 CE-M-717 SW
1-CES-112
1-CES-158
NE
Berimbau Up-dip pinch out and fault offset
CE-M-661
CE-M-665
Berimbau
Pecem K50 discovery
Maraca K40
Pecem K40
Ganza K40 8km
January 2018 | P25
Data Proprietary to PGS Investigacoa Petrolifera Limitada
Excellent imaging on new broadband seismic of Upper Cretaceous turbidite channel sands
CE-M-717
Financials
Net debt and hedging Net debt
Comprehensive refinancing completed
• Net debt of $2.7bn
Facilities confirmed 1 $4.0 bn
• Positive cash flow in 2017 including disposals; debt reduction accelerating as Catcher production ramps up
Drawn Debt
• Average cost of debt c7% going forward • Targeting Net Debt/EBITDAX
