Premier Oil Investor Presentation 2017-February
•
2 likes•564 views
Premier Oil Investor Presentation 2017-02-17, 2016 Highlights - High Operating Efficiency, Step Change in Production, Continued Portfolio Upgrading, Cost Reductions, Refinancing in Progress.
Report
Share
More Related Content
What's hot
What's hot (19)
Viewers also liked
Viewers also liked (10)
Similar to Premier Oil Investor Presentation 2017-February
Similar to Premier Oil Investor Presentation 2017-February (20)
More from OILWIRE
More from OILWIRE (20)
Recently uploaded
Recently uploaded (20)
Premier Oil Investor Presentation 2017-February
- 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 2017 | P1
- 3. Cost reductions delivered High operating efficiency Step change in production Continued portfolio upgrading Refinancing in progress 2016 highlights 1 2 3 4 5 2016 2017E 91% >90% 2015 2016 2016 Q4 58 kboepd 71.kboepd >80 kboepd E.ON acquisition case 2016 2H 15 kboepd 17 kboepd 2014 opex 2016 opex $18.5/boe $15.7/boe Drawn Debt Total Facilities (incl LCs) $3.4 bn $4 bn Undrawn February 2017 | P2
- 4. Indonesia • >90% operating efficiency • Strong demand (44% of GSA 1, record GSA 2 delivery) • $10/boe opex • Increase demand post 2020 – Quick payback, high return projects – Bison, Iguana, Gajah Puteri • Longer term growth opportunities – Tuna, 3rd party business Asia – providing cash flow for the business Vietnam • >90% operating efficiency • <$9/boe opex • Further cost reductions – Renegotiation of vessel and helicopter contracts – Revised terms for FPSO agreed • High return, low cost projects include infill drilling in 2017 Low cost, high return opportunities to maintain / grow production February 2017 | P3
- 5. UK North Sea – growth story Wytch Farm (30.1%) • Long life field • Infill opportunities Solan (100% op) • Production currently restricted at 10-13 kbopd • Cost reductions continue to be secured UK overview • Improved uptime • UK drives production growth: • Strong operating base • Tax advantaged position Babbage (47%) • High uptime • Moving to unmanned • Cobra potential tie-back Elgin-Franklin (5.2%) • Long life field • Rates of >130 kboepd (gross) • On-going infill drilling and well intervention programme Huntington (100% op) • Strong reservoir performance • 2016 production significantly above budget Catcher (50% op) • On track for first oil 2017 • 29% cost reduction secured Tolmount (50% op) • Low cost, high return project • Significant area upside • Tolmount East +250 bcf • Tolmount Far East +150 bcf February 2017 | P4 2015A 2016A 2017E 2018E UK production
- 6. • Templates, flowline bundles, midwater arches and gas export pipeline installed • Buoy and moorings system installed • Hook up of risers & umbilicals completed • Subsea programme below budget Subsea • 9 wells drilled with excellent operational performance • Pre-drill predictions for reservoir quality and flow rates at or above prognosis • Drilling programme below budget Catcher – ahead of plan Burgman BP3 producer well Tay reservoir Drilling February 2017| P5
- 7. February 2017 | P6 Module lifts onto Catcher FPSO completed • Outfitting of FPSO progressing well • 13/13 modules lifted onto FPSO • ~2,000 people working on the vessel • On track for summer 2017 FPSO sailaway
- 8. Catcher schedule 20172016 2H • Plateau rates of 50 kboepd (gross) • $1.6bn total project cost • Potential further savings from contingency release and FX • Forward cost exposure reduced significantly BP3 & BP 5 completed Drilling at Varadero (4 wells) Installation of Buoy and Mooring System Module Lifts Installation of risers Hull mated Onshore pre-comm and comm Drilling at Burgman (2 wells) FPSO transit to Catcher field FPSO buoy and hook-up First oil February 2017 | P7 Drilling at Catcher (4 wells) * Assumes $1.25/£ to end 2017, then $1.3/£ and 20 wells drilled Topsides integration Capex - 29% reduction in costs secured * $mm 0 50 100 150 200 250 300 350 2014 2015 2016 2017 Sanctioned budget Actual/current forecast
- 9. Tolmount – next phase of growth Indicative metrics (gross) • 450 Bcf • Capex <$600m • Opex: c.$7/boe • Peak production : 200 mcfd • First gas 2020 High return project in a low gas price environment Timetable to sanction • Concept select Q1 – Standalone, normally unmanned or subsea tie-back to nearby facilities • Project optimisation – Capex reducing – Potential 3rd party funding • FID targeted for 2017/early 2018 • Partial sales process underway February 2017 | P8
- 10. Southern Gas Basin: portfolio of opportunities Babbage (47% op) • Infill opportunities Ravenspurn Deep (5% carried interest) • BP/Perenco long-reach well planned for late 2016 Newton (50% op) Cobra (50% op) • 250 Bcf gas discovery • Potential tie back to Babbage 30km radii Portfolio of opportunities which are economic at <30p/therm February 2017 | P9 Minerva Tolmount (50% op) • Discovered Oct 2011 • 2 appraisal wells in 2013 • 450 bcf of resource • Largest UK gas discovery since Breagh in 1997 • Significant upside (E.Tolmount, Malin)
- 11. February 2017 | P10 • Licence extended to 2020 • Good progress on FEED in 2016 – Facilities capex and opex cost estimate reductions from FEED contractors’ collaboration – Logistics and drilling cost estimate reductions following extensive market engagement – $45/bbl current estimated breakeven price • Forward focus on commercial and fiscal work streams & securing a financing solution for the development Estimated capex to first oil now $1.5bn Sea Lion Phase 1 – reducing breakeven price
- 12. • Sureste Basin is a prolific hydrocarbon province (62 bn bbls of proven oil) • Exercised option to increase to 25% in Block 7 − Shallow water (<150m) − Same salt flanks and sub- salt plays as the US Gulf of Mexico − Large Zama well to spud early Q2 Mexico – potential for material value creation 2017 - 20182016 2H Delivery of reprocessed 3D seismic across 2 blocks Confirm final drilling candidates Tender for a moored, semi- sub rig for Block 7 First exploration well on Block 7 First exploration well on Block 2 February 2017 | P11 Flat Spot Zama Prospect
- 13. Net debt & refinancing update February 2017 | P12 Debt type Description Facility size Maturity Bank debt RCF & LC US$2.5bn 2019 Bank debt Term Loan US$300m Dec. 2017 US Bonds Private Placement US$380m No maturity before 2018 German Bonds Schuldschein US$130m 2018 & 2020 UK Bonds Convertible US$245m 2018 UK Bonds Retail bond GBP150m 2020 Private lenders Publically traded debt • Long form term sheet agreed and circulate to lenders for formal credit committee approval − Preservation of the full amount of existing facilities including undrawn amounts − Alignment of all maturities to 2021 or later − Amendment of the group’s financial covenants − Provision of a comprehensive security package to lenders − Enhanced economics to lenders − Certain governance controls • Aim to have creditors locked up to the final terms during February • Negotiations with convertible bondholders ongoing Net debt of $2.8bn, marginally down fromQ3 Cash and undrawn facilities of c. $600m
- 14. 2016 2018 Infills Tolmount Sea Lion $2.25bn $1.6bn Sanctioned budget Forecast Maintain competitive cost base Continuing production growth Catcher delivery Select highest return projects for sanction Deliver debt reduction Outlook 1 2 3 4 5 20% >50% 30% 2016 Solan Catcher $15.7/boe 5.2x 3x $12/boe $20/boe February 2017 | P13 2016 2017 2018 IRR Net debt/ EBITDAX
- 15. Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR Tel: +44 (0)20 7730 1111 Fax: +44 (0)20 7730 4696 Email: premier@premier-oil.com www.premier-oil.com February 2017