Premier o il

2011 Annual Results Presentation 22 March 2012

22nd March 2012 | Page 1

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.


Agenda

Premier today

2011 financial results

Operations update

Exploration update

Summary

Simon Lockett

Tony Durrant

Neil Hawkings

Andrew Lodge

Simon Lockett


Over the last 6 years …

40%

338%

72%

80%

Over the period, NAV/share CAGR of 14.2%excluding oil price effects


Premier today...

Acquire LicenceGate

Drill DecisionGate

AppraisalApproval Gate

ProjectExtension

Gate

MEA

PN

orth

Sea

Asi

a

Pre-Development

AppraiseDrillEvaluateLEADS PROSPECTS MATURE PROSPECTS

... is in the strongest position in its history

• Clear path to 100,000 boepd from existing projects

• >1.5 billion of prospective resources in the exploration portfolio

• Fully funded programme with strong and rising cash flows

• Proven capability to deliver across the portfolio


2011 highlights...

• Increased production to 60,000 boepd at year end– Chim Sáo and Gajah Baru onstream– Next generation of development projects progressing

• Increased reserves and resources to 527 mmboe– Exploration success at ~$5/bbl post-tax– Acquisitions at ~$8/bbl

• Increased financial strength – Cash and undrawn facilities of ~$1.4 billion– Strongly rising cash flows– Record profitability– Continued access to bond and bank markets at favourable rates


2011 financial results


Record profitability

12 months to31 Dec 2010

Operating costs ($/bbl)2011 2010

UK $39.5 $28.7Indonesia $11.1 $8.5Pakistan $2.4 $2.0Vietnam $16.6 –Group $15.9 $13.9

Highlights12 months to31 Dec 2011

Working Interest production (kboepd)Entitlement production (kboepd)Realised oil price ($/bbl) – pre hedgeRealised gas price ($/mcf) – pre hedge

Sales and other operating revenuesCost of salesGross profitExploration/New BusinessGeneral and administration costsOperating profit Financial itemsProfit before taxationTaxation creditProfit after tax

42.838.379.76.3

$m764

(531)233(87)(18)128(27)10129

130

40.437.7

111.98.5

$m827

(415)412

(211)(25)176(34)14229

171

• Net impact on 2011 of $23 million post-tax

• 25% of 2012 production hedged at average of $100/bbl

• Minimal hedging beyond 2012

• All b/fwd losses recognised as deferred tax asset

• $1.36 billion allowances carried forward into 2012

• No UK CT cash taxes until 2018 under existing model using $75/bbl

Hedging

Taxation


Rising cash flows

Cash flow from operations

Taxation

Operating cash flow

Capital expenditure

(Acquisitions)/disposals, net

Finance and other charges, net

Pre-licence expenditure

Net cash flow


$m 2011

Development

Exploration

Estimated capex split ($m)

433

228

661

Regional split ($m)

505

(69)

436

(514)

13

(70)

(19)

(154)


$m 2010

349

165

514

530

(44)

486

(661)

(90)

(50)

(23)

(338) North Sea$302m

Asia$301m

Total$661m

MEAP$58m

Outlook• Operating cash flow increased by 11%; significant growth expected in 2012


Strong liquidity position

Cash

Bank debt

Bonds

Convertibles

Net debt position

Pro forma Gearing

Cash and undrawn facilities

at 31 Dec 2010$m

300

(488)

( – )

(218)

(406)

26%

1,202

at 31 Dec 2011$m

309

(484)

(341)

(228)

(744)

30%

1,116

Outlook• Current debt funding costs average 5% (fixed) and 3% (floating)• Additional bank and bond debt raised post year-end of $585 million raising cash

and undrawn facilities (after some debt repayment) to $1,400 million by mid-March


Fully funded programme

1400

Investment Profile(US$ million)

400

200

0

500

700

900

20132012 2015

800

600

100

300

2014

10001100

Exploration ExpenditureDevelopment Capex1300

1200

Note: assumes exploration expenditure of $250 mm pa from 2013

2012 outlook

•Forecast full-year 2012 spend of ~$740 million (development) and $220 million (exploration)

•Total capex covered by cash flow for 2012 at current spot prices

Forward funding

•Forward profile funded by cash flow and facilities even at $60/bbl

•Significant capacity to increase spend on exploration and new development projects

Outlook• Rising production generates $2 billion post-tax cash flow in 2015 at $100/bbl


Operations update


Operations highlights

• Chim Sáo and Gajah Baru onstream in October– Deliverability exceeding expectations

• Realising further value from producing assets

• Continued progress on the development portfolio:

– Huntington and Rochelle progressing– Solan project sanction expected soon– Development studies for Catcher well-

advanced

• On track to reach 75,000 boepd run rate by year end 2012, once Huntington and Rochelle onstream

• Anticipate reaching 100,000 boepd when Catcher comes onstream in 2015


Production update

• Year-end target of 60,000 boepd achieved– Full year production 40,420 boepd– Strong gas demand in Pakistan and

Indonesia, combined with good facilities performance

– Improved Balmoral production in H2, as maintenance issues were progressed

• Wytch Farm acquisition adds ~2,500 boepd net

• Production at Kyle (1,760 bopd) shut-in since December 2011

• 2012 full year production forecast 60,000-65,000 boepd, with key variables being

– Timing of Huntington first production– Ability to capitalise on excess deliverability

at Chim Sáo and Gajah Baru

50

Production (working interest)(kboepd net)

20

10

0

60

2007 20102008 2009 2012E

30

AsiaMEAPNorth Sea

2011

40

70


Natuna ‘A’ 2015

Block A – strong production performance

Anoa & GSA1 • Producing at current maximum capacity

– 170-180 BBtud

• Phase 4 expansion project underway– Raising capacity to 200 BBtud

• Pelikan will add 70 BBtud of capacity

Gajah Baru & GSA2/3/4• Currently producing at 60-90 BBtud

• DCQ increases from 50 to 90 BBtud at end Q1– 200 BBtud well deliverability

• Indonesia will shortly take an additional 40 BBtud when the domestic swap agreement is signed

Outlook• Series of new field developments will maintain rates

• Exploration is adding additional reserves


Singapore Gas Market – sales are increasing

Singapore demand for gas will increase• Existing pipeline supplies are naturally declining

• LNG supplies must commence and increase

• But supply diversity will be maintained, and be underpinned by 90% Take or Pay contracts

• GSA1 demand expected to remain between DCQ and Max Rate (341-392 BBtud)

Premier’s GSA1 market share is increasing• Block A contractual market share of GSA1 is 37%

– 2011 Block A actual share of deliveries was 42%

– Block A share of remaining reserves dedicated to GSA1 has increased to 59%

– Other GSA 1 suppliers are expected to drop to 150-100 BBtud in 2015-2016

• GSA 1 market available to Block A could increase to 200-250 BBtud in 2015-2016


Chim Sáo – delivered and ramping up

• First oil achieved, safely and on budget, in October 2011

• Currently producing 25,000-30,000 bopd– Gas exports add a further ~4,000 boepd– Rates limited due to water injection

delays– 9 production wells could reach

40,000 bopd– Vessel capacity is 50,000 bopd

• MDS5/6 reserves have increased by10 mmbo


Chim Sáo – uncovering upside potential

Chim Sáo North West

• Chim Sáo North West discovered in August 2011

• Additional gross resource estimate 13 to 20 mmbo

• Near vertical appraisal well scheduled for mid-2012

• Development will be via existing facilities

Additional Reservoirs

• Further reserves potential is beingfound in reservoirs other than MDS5/6

Tie-in of Dua

• Government of Vietnam approvedODP in December 2011

• Long lead items being purchased

• Project sanction expected 1H 2012,first oil 2014

2000m

3060mss

ChimSáo

West Closure

Far Closure

Near Closure


Kadanwari – getting more from a mature field

Kadanwari field• Came onstream in 1995

• Highest gas price in Pakistan

• 2008-2012, five new gas compartments discovered:– K-27 tied-in to system at 45 mmscfd in 2012– K-28 and K-30, which tested at 30 mmscfd and

50 mmscfd respectively, will be tied-in by mid-2012

• Production levels expected to be at 110 mmscfdduring 2012-2014

• Further exploration well planned for 4Q 2012

Upside potential• 550 bcf of tight gas potential identified in 2011

• 3 well pilot project planned for 2012


Wytch Farm – motivated operator finding upside

Increased equity• Increased Working Interest in Wytch Farm by

17.715% to 30.1% in 2011 – ~4,500 boepd of net production in 2012– Adds ~11 mmboe of net reserves

Upside potential• Initiated active drilling programme to 2017 and

beyond to increase deliverability– Infill drilling in producing reservoirs to

accelerate production and optimise recovery

– Bringing into production of satellite discoveries onshore

• Long term production and reserves upside through waterflood optimisation and EOR

• Working with new operator Perenco to maximise value


Huntington and Rochelle – progressing to first oil

• Successful development drilling campaign• Phase 1 sub-sea installation completed• CATS gas transportation agreement signed and

shuttle tanker contract awarded• Upgrade of the Voyageur FPSO proceeding• Operator is expecting first oil in Q4 2012

• Rochelle area agreement executed May 2011• Approval of FDP for East and West Rochelle

in 2011• Scott platform modifications underway • Subsea installation to commence in June 2012• First gas expected in November 2012

Huntington Rochelle


• Premier is Operator with 60% equity

• Development Concept:– Subsea wells and storage tank– Processing deck on a conventional jacket– Reserves estimate ~ 40 mmbo– Initial rate of 22,000 bopd – Capex of ~$850 mm with $30 mm/year opex

• Premier will provide Chrysaor with:– $50 million carry– Corporate loan for the balance of their equity– Loan recovered through Chrysaor’s cash flow

• Will qualify for new “Small Fields Allowance”

• Internal approvals are in place and seeking partner and DECC approvals before end April

Solan – approaching project sanction


Catcher Area – selecting a development concept

• Further 2011 drilling resulted in:– STOIIP estimates of ~260-290 MMSTB– Reserves estimates of 80-130 MMSTB– Production rate of 50-70,000 bopd

• EnCore acquisition has completed– Premier in place as Operator with 50% equity

• Conceptual Engineering studies completed– Capex estimates range from $1.6bn for a leased

FPSO to $2.8bn for a central fixed platform– JV concept selection process is underway

• New “Small Fields Allowance” will apply to seperate accumulations on block

• Targeting sanction by year-end with first oil in 2015

FPSO and Subsea Wells

CPP, Bridge-linked WHP and Subsea Wells


Reserves and resources – continuing growth

600

2007

450

400350

0

150200

250300

2008 2009

10050

Reserves and contingent resources(mmboe)

Production Additions &Revisions

End 20112010

2C contingent resources2P reserves

296

550

500 230227

261

Reserve replacement ratio of 333%


A clear path to 100,000 boepd

120,000

Production outlook(bbls/day)

40,000

20,000

0

60,000

2012 20142013 2016

100,000

80,000

2015

1100

Development capex(US$ million)

400

200

0

500

700

900

20132012 2015

800

600

100

300

2014

1000

2016

At $100/bbl, expect post tax cash flow of ~$2 billion in 2015

Pre-DevelopmentSanctioned ProjectsOn Production


Exploration update


• Focus on geologies we know well– Rifts or frontal fold belts

• Target best plays in basins of choice

– Play master approach

• Deliver 200 mmboe of 2P reserve additions by end 2014

• Invest up to 30% of annual cash flows in exploration

• Gated process to decision making

Exploration strategy

Old New

Old

1. Premier capabilities and niche strategies

3. Technology capabilities and resource diversification opportunities O

ld

New

2. Leverage Premier capabilities in new areas

4. Identify long term opportunities for growth and approach to de-risk investment

New

Old New

Geographies

Themes

Themes

Geographies

AsiaMEAP &

ExplorationNew

Business

North Sea


2011 highlights

Exploration drilling• Notable discoveries at Burgman in the Catcher

area in the UK, and CRD and Chim Sáo North West in Vietnam

• 12 out of 21 exploration and appraisal wells drilled in 2011 successful

• Additional successes to date in 2012 with Anoa Deep in Indonesia and K-30 in Pakistan

• Remain on track to deliver 200 mmboe by end 2014

– 70 mmboe added to date

New ventures• 2011 highly successful for new acreage capture in

Norway, UK and Kenya

• With lead and prospect maturation, greater visibility for 2014 and beyond

200

100

50

0

150

2012 2013 2014

450

Actual & forecast risked resource additions 2009-2015 (mmboe)

2009Actual

400

350

300

250

2010Actual

2011Actual

2015

Actual cumulative plus possible resourcesCumulative risked prospective resource additionsRisked prospective resource additionsActual proved plus probable additions

•Unrisked prospective portfolio of >1.5 billion boe (350 mmboe risked)


NorwayPL378: Grosbeak

UKP1875 ErneStingray

NorwayPL374S: Blabaer

Bonneville

Carnaby

VietnamBlock 12W: CS NW

AppraiseDrillEvaluate

Acquire LicenceGate

Drill Decision Gate


ProjectExtension

Gate

MEA

PN

orth

Sea

Asi

a

Pre-Development

SpaniardsCoaster

CougarRapide

Rocket

K-32Badhra South

Badhra-7

New York

Typhoon

Lacewing

Cyclone

Tupai

AnakondaB Sedang

Kakak Tua

B Kecil

Sambar

CRT

Silver Sillago

Singa / Kuda Laut

Peudawa Rayeu

Alur Kacang

Biawak Besar

Matang

Benteng

Baroosh

Badhra-6 Parh

VietnamBlock 12W: CS Cau

VietnamBlock 087/03 CRD

PakistanKadanwari K-30

Norfolk

Moth E.

Moth S.

Cornet

LEADS PROSPECTS

Dino

Recent acquisitions add to overall portfolio value

Luno II

MATUREPROSPECTS

UNDER APPRAISAL

<10 <100 >100 >250

Net NPV10 $mm

>10 >25 >50<10

Net EMV10 $mm(shown as circle inside NPV)Acreage acquired in 2011

added >$3bn success case NPV (>$400mm EMV)


• Targeted play led exploration

• Leveraging extensive datasets and geophysical expertise

• Pushing plays beyond their currently understood limits – wider and deeper

• Future growth from within the portfolio and through new acquisitions and/or licence awards

• Targeting 7-8 wells in 2012 with combined gross mean prospective resource estimate of >350 mmboe

Exploration – North SeaOverview


• Premier has the regional database to pursue amplitude supported Tertiary prospectsthroughout the Central North Sea

• 3 firm wells to be drilled in 2012 targetingEocene prospects: Carnaby, Coaster and Cyclone

– Combined gross prospective resource estimate of 48-115-225 mmbo

• The Stringray prospect is attemptingto push the boundaries of theJurassic play fairway to the North

– Gross prospective resource estimate of 12-30-90 mmbo

Exploration – North SeaPushing the plays wider

Cyclone

Coaster

Stingray

Varadero

Carnaby CatcherN & E

Eocene ( Lower Tay) amplitude extraction

Burgman2km

Coaster Tay Amplitudes

Catcher EastDiscovery

CoasterProspect

Eocene Turbidite Sand Fairway

Carnaby


Appraisal – North SeaGreater Fyne Area

• Fyne Area entry – seeking incremental reserves to reach development threshold

• Erne and Fyne Appraisal encountered hydrocarbons but limited impact on reserves for Greater Fyne Area

• Reserves insufficient for standalone development

• Economics of tieback to nearby host FPSOs do not currently meet Premier corporate hurdles

• Discussions with partners ongoing

East Fyne

Erne


Cyclone (P1784) (21/7b)• Premier 70% equity, block awarded in 2010

• Gross prospective resource estimate (on block) – 20-35-50 mmboe (Tay reservoir)

• Risk assessment: moderate– Critical factor: oil column

• Well planned for Q3 2012

Exploration – North SeaPushing the play wider ... Cyclone

Amplitude extractionGreen - oil?Yellow - gas

Cyclone amplitude responseon far stack data

Balder

2km

Cyclone

Cyclone


Norfolk (P1887) (12/16b & 12/17b)• Premier 25% equity, block awarded in 26th Round

• Gross prospective resource estimate (on licence)– 20-146-495 mmboe

• Risk assessment: high– Critical factor: hydrocarbon charge and quality

• Prospect maturation ongoing

Exploration – North SeaPushing the plays wider ... 2013

Norfolk

Norfolk Norfolk

NNW SSEEW


• Potential exists for deeper underexplored fairways inthe North Sea

• In 2012, Premier will drill two prospects targeting this deeper potential: Lacewing (Triassic target) and Luno II (Jurassic target)

• Combined gross prospective resource potential of 100-200-400+ mmbo

• Additional prospect maturation ongoing for drilling in 2013 and beyond

Exploration – North SeaPushing the plays deeper

Lacewing

Luno II


Exploration – North SeaPushing the plays deeper ... Luno II

Luno II (PL 359)• Premier equity 30%• Greater Luno is a regional high

– Focus for oil migration – Regional top seal drapes the high– Jurassic/Triassic reservoirs flank the high and,

where fractured, basement is also a reservoir– ~2,000 mmboe discovered to date

• Key play risks– Reservoir presence on the margins of the high– Lateral seal

Johan Sverdrup

PL 359

BCU Time MapC.I. 100 ms

Luno/Apollo

Ragnarrock

10km

Luno II Prospect

• Luno II is on the Southwest margin of the Johan Sverdrup high• Mesozoic sand presence interpreted from seismic and local well data• Gross prospective resource estimate: 125mmbo (mean)• Risk assessment: moderate

– Critical factor: lateral seal• Well planned for Q4 2012


Lacewing (P1181, 23/21 & 23/22b)• Gross prospective resource estimate

(on block)– 50-70-90 mmboe

• Risk assessment: high– Critical factor: trap effectiveness

and reservoir quality

• Transfer of 37.3% and operatorship to ConocoPhillips plus partial carry

– Premier’s retained equity in the block will be 20.2%

• ConocoPhillips considerable HPHT experience


Top Triassic Depth Map

Exploration – North SeaPushing the plays deeper ... Lacewing


• Play led approach in the Nam Con Son Basin

– North West Chim Sáo Appraisal– Kuda/Singa Laut wells planned– Prospect maturation for 2013

• Adding gas reserves– Anoa Deep success– Biawak Besar planned for late

March– Matang will spud Q3 2012

• Pushing the frontiers– Benteng expected to spud late

March

Exploration – AsiaOverview

Benteng

Chim Sáo

Anoa Deep,Biawak Besar

MatangKuda/Singa Laut


Exploration – AsiaKuda/Singa Laut ... 1H 2013

Fluid Detection Volume – 3D Inversion

4 km

Combined Depth Structure Map-32

00m

Kuda/Singa Laut (Tuna Block)• Premier 65% equity and Operator

• Faulted dip closed structure up dip from a proven source kitchen to the east

– Primary reservoir target is Miocene in the Kuda Laut segment and Oligocene in the Singa Laut segment

• Risk assessment: low (amplitude supported)

• Gross prospective resource estimate: 60-100-140 mmbo

• Well planned for 1H 2013Kuda Segment Singa Segment Singa Laut

Kuda Laut

Singa Laut


Anoa Deep (Natuna Sea Block A)• Premier 28.67% equity and Operator

• Drilled as an exploration tail to the WL-5 development well

• Encountered ~300 feet of fractured Lama Sandstones

• Lama formation tested and flowed gas – 17 mmscf/d through a 48/64 inch choke– Estimated total gas in place of 70-100-150 bcf

• The well will be tied-in to the Anoa facility

• Significant follow-on potential– Similar sized structures are

mapped at the Top Lama to thenorth and east of Anoa Deep

Exploration – AsiaAnoa Deep success

Top Lama DepthC.I.=100 feet

WL

1 Km

Anoa DeepDiscovery

Anoa North

2 Km

PRIMARY TARGET

NW SE

Anoa Deep (WL-5X)PTD 10850 ft MD (9550 ft TVDss)

Top Lama


Benteng (Buton Block)• Premier 30% equity, operated by Japex

• Gross prospective resource estimate: – 77 mmboe (mean)

• Risk assessment: high– Critical factor: trap presence

• Well planned for late March

Buton Block

Bulu-1

Benteng-1PTD 3200m MD

PTD

2 Km2 Km

PRIMARY TARGET

NW SE

Exploration – AsiaPotential play opener ... Benteng


L10A & L10B• Potential to extend successful plays to

the south into Kenya• 2535 km2 of 3D seismic successfully

acquired in Q4 2011 – Processing of 3D seismic to be

completed by year-end

• 1030 km of 2D successfully acquired in Q1 2012– Processing to be completed in Q2

2012

• Preliminary data sets show good quality

Exploration – MEAPEntry into offshore Kenya

Test line from the 3D survey


Exploration drilling 2012

17 exploration and appraisal wells planned for the remainder of 2012, targeting ~200 mmboe

of net unrisked prospective resourceContingent Wells

Firm Wells: Rig Contracted

Firm Wells: Rig TBC

All well timings are subject to revision for operational reasons

Q1 Q2 Q3 Q4Vietnam Block 12W Chim Sáo NW Appraisal 17 Low

Indonesia Buton Benteng-1 77 High

Natuna Sea Block A Biawak Besar 15 Low

Block A Aceh Matang 40 Low

Norway PL359 Luno II 125 Moderate

UK P1430 Carnaby 34 Low

P1812 Coaster 50 High

P1430 Bonneville TBC Low

P1212/P1771 Stingray 32 Moderate

P1784 Cyclone 35 Moderate

P1655 Spaniards 32 High

P1181 Lacewing 70 High

Pakistan Kadanwari K-32 7 Low

Bhit-Badhra Badhra South Deepening-1 38 High

Badhra-7 10 High

Mauritania Commitment well TBC TBC

Middle East - Africa - Pakistan

Asia 2012 Mean gross unrisked

resource (mmboe) Risk

North Sea

PRA 01

Weatherford 812

Bredford Dolphin

Sedco 711

Sedco 711

Glomar Arctic III

Wilphoenix

Maersk Resiliant

Wilphoenix

West Callisto

ENSCO 107

Sedco 711

Wells to watch in 2012


2012 New Venture focus

North Sea (Rift theme)• UK and Norway Licence Rounds• Potential adds through acquisition

MEAP (Rift & Frontal Fold Belt themes)• East Mediterranean and Egypt• Pakistan and Iraq• Expanding Premier’s acreage position in

East Africa

Asia (Rift & Frontal Fold Belt themes)• Andaman Sea• East Vietnam• Frontier Basins of East Indonesia


Exploration

Key messages...• Portfolio of >1.5 billion boe of unrisked potential

• Wells to watch

– North Sea: Carnaby, Coaster, Cyclone and Luno II

– Asia: Anoa Deep, Biawak Besar and Chim Sáo North West appraisal

• On track to deliver material programme in 2013 and beyond

• New Venture focus on basins with geologies that we understand


Summary


Already in 2012...• Solan• Anoa Deep• EnCore Oil• Finance

––––

Board approvalA new exploration play beneath AnoaCompleted acquisition and Cladhan saleCash/undrawn facilities increased to $1.4 bn

Forward plan...• Production • Developments • Exploration • Acquisitions • Cash flow

–––––

Rising production to 100,000 boepdDelivery on time, on budget, operatedEnhancing portfolio materialityWhere we can add valueIncreasing to $2 bn per annum

What can you expect from Premier?


Appendix


Group taxation position

Overseas

Prior period provisions

UK

PRT

CT

Prior period revisions

Current charge

Deferred tax credits

Tax credit for the year


$m

56.9

25.9

Nil

(21.3)

61.4

(90.4)

(29.0)

Allowances brought forward

Net additions in 2011 excluding RFES

RFES changes

Tax allowances carried forward*

UK Tax Allowance Position at 31 Dec 2011

$m

1,112

204

44

1,360


$m

60.1

72.1

17.2

nil

(2.1)

147.3

(177.0)

(29.7)

* fully recognised as deferred tax asset


Other developments

• Caledonia will be a tieback to Balmoral but with gas lift from Britannia

• Sanction in 2012 with first oil in 2014• New “Small Field Allowance” expected

Block A Aceh (Vietnam)

• Project sanction delayed– Facilities sharing agreement with Arun

not completed (Arun owner is selling the asset)

– EPCI bid: decision taken to re-tender

• First gas is now scheduled for mid-2015

Caledonia (UK)


Other developments

Bream (Norway) Frøy (Norway)

• Work on the stand-alone development remains on hold

• Discussions on joint development are underway with other operators

• Focus is Frigg Gamma Delta where a new operator has recently taken over

• First oil for Froy modelled for 2017

• Development plan progressing and the FPSO has been selected

• FEED is underway on both the FPSO and the subsea scope

• FPSO contract expected soon• Project sanction is planned for Q3 2012,

with first oil in 2015


End 2011 2P reserves and contingent resources

North Sea Asia MEAP Total

2P Reserves On production 36.8 74.8 32.5 144.1

Approved for development 16.6 33.7 5.1 55.5

Justified for development 71.8 24.1 0.8 96.7

Total Reserves 125.2 132.6 38.5 296.3

2C Contingent Resources

Development pending 52.9 7.4 1.0 61.3

Un-clarified oron hold 16.1 32.9 15.7 64.6

Development not currently viable 27.6 63.9 12.8 104.4

Total Contingent Resources 96.6 104.2 29.5 230.3

Total Reserves & Contingent Resources 221.8 236.8 68.0 526.6

These figures do not include prospective resources


Unrisked Resource Portfolio

Risked Resource Portfolio

Discovered resourceunder appraisal 33 mmboe

Leads196 mmboe

Prospects160 mmboe

Total1,729

mmboe

Total373

mmboe

• Unrisked prospective resource portfolio of 1,696 mmboe

• Portfolio changes from 2010:– Increased lead inventory in Kenya,

Norway and the UK– Prospect inventory adjusted post

2011 drilling

• Risked prospective resource portfolio of356 mmboe

– 160 mmboe in prospects– 196 mmboe in leads– Focus to lead and prospect

maturation in 2012

Prospective resource portfolio

Discovered resourceunder appraisal 17 mmboe

Leads1,186 mmboe

Prospects510 mmboe


UKP077: East FyneStingray

NorwayPL374S: Blabaer

Bonneville

Carnaby

VietnamBlock 12W: CS NW

AppraiseDrillEvaluate

Acquire LicenceGate

Drill Decision Gate


ProjectExtension

Gate

MEA

PN

orth

Sea

Asi

a

Pre-Development

Spaniards

Coaster

CougarRapide

Rocket

K-32Badhra South

Badhra-7

New York

Typhoon

Lacewing

Cyclone

Tupai

AnakondaB Sedang

Kakak Tua

B Kecil

Sambar

CRT

Silver Sillago

Singa / Kuda Laut

Peudawa Rayeu

Alur Kacang

Biawak Besar

Matang

Benteng

Baroosh

Badhra-6 Parh

Norfolk

Moth E.

Moth S.

Cornet

Dino

Luno II

Recent acquisitions add to overall portfolio volume

LEADS PROSPECTS MATUREPROSPECTS

UNDER APPRAISAL

<10 10-25 26-49 50+

Net Prospect Rec Resource(mmboe)

Risked

Acreage acquired in 2011


Carnaby

Exploration – North SeaCarnaby

Carnaby (28/9)• Premier 35% equity• Gross prospective resource estimate

– 15-30-50 mmbo (Tay reservoir)• Expected phase oil

– Gas in shallower Eocene targets (Upper Tay)• New 3D seismic data work ongoing• Well planned for Q2 2012

Varadero

Carnaby CatcherN & E

Catcher Main

Catcher E

Carnaby

Varadero

NS

Lower Tay

Upper Tay

Burgman

Cromarty Depth Structure

Carnaby Prospect

Eocene ( Lower Tay) amplitude extraction

Carnaby

Burgman

Burgman


Exploration – North SeaCoaster

Coaster (28/10a)• Premier 100% equity, TAQA farmed

into 50% interest

• Gross prospective resource estimate13-50-125 mmboe (on block)

• Eocene and Palaeocene reservoirs

• Risk assessment: high – Critical factor: trap and charge

• Well due to spud Q2 2012

Rapide

Cougar

Varadero

Catcher North

JU1

Catcher Tiger

Burgman

Rocket

Paso

Bonneville Area

Vincent

Coaster

JU2

Carnaby


Stingray (P1212) (15/13b)• Premier 50% equity, block awarded in 2004

• Gross prospective resource estimate (on block)– 12-30-90 mmboe

• Risk assessment: moderate– Critical factor: trap – sealing fault to the north cannot be

accurately determined

• Planned spud date Q2 2012

Exploration – North SeaStingray

Stingray Prospect

Stingray


Spaniards (P1655)• Premier equity 28% and Operator,

adjacent to Scott infrastructure

• Gross prospective resource estimate:– 10-30-40 mmbo

• Risk assessment: high– Critical factor: reservoir development

• Primary Target: – Jurassic Galley Sands (oil)– Appraising down dip extent of crestal

oil discoveries in wells 15/21a-38z and 15/21-2


Top Galley Sand Depth

14/25a-5

Perth

Halibut Horst

Spaniards WestRyazanian

Spaniards EastGalley

Spaniards CentralGalley

Exploration – North SeaSpaniards


Biawak Besar (Natuna Sea Block A)• Premier: 28.67% equity and Operator

• Gross prospective resource estimate 13-15-17 mmboe

• Risk assessment: low– Critical factor: lateral seal presence

• Potential in a stratigraphic trap down-dip of the Iguana-1 discovery


Top Arang DepthC.I.=100 metres

2000m

Iguana Discovery

Biawak Besar-1

Biawak BesarPTD 5950 ft MD

Top Lama

PTD

500m

SENW

PRIMARYTARGET

Biawak Besar

Exploration – AsiaBiawak Besar


Matang (Block A Aceh)• Premier equity 41.67%

• Gross prospective resource estimate 20-40-70 mmboe (whole structure)

• Risk assessment: low – Critical factor: reservoir presence– 250 BCF follow on potential in the success case


500m

EW

Top Belumai

Matang-1PTD 3000m MD

Matang

Top N4 BelumaiCarbonate

C.I.=50 metres1 Km

Matang-1

Exploration – AsiaMatang

22nd March 2012 | Page 60www.premier-oil.com March 2012

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