creating value from rift basin · pdf file · 2015-01-10creating value from rift...

Finding Petroleum Conference January 20th / 21st 2010

Creating Value from

Rift Basin Exploration

Premier’s SE Asia Story

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.

Target

• Build three quality businesses

which deliver 100 kboepd from

400 mmbbls of reserves

Strategy

• Attain 75 kboepd from 2P

reserves of 265 mmboe

• Commercialise contingent

resource base of 180 mmboe

• Add 200 mmboe of

2P reserves from exploration

• Make value-adding acquisitions

in three core areas

• Maintain a conservative

financing plan

Exploration is a fundamental part of Premier’s growth strategy

Target and strategy

The majority of the worlds petroleum resources are found in 3 basin types:

• Rift Basins: e.g. North Sea, SE Asia, onshore Africa and West Siberia

• Passive Margins: e.g. West Africa / SE Brazil, NW Australia and the Gulf of Mexico

• Fold-belts / Forelands: Columbia, Iran / Iraq / Saudi Arabia and Pakistan

Premier has a competitive advantage in value creating exploration of Rifts and Fold-belts / Forelands

Premier will continue to explore the rift basins of SE Asia and the North Sea and will look to exploit its

competitive advantages in selected rifts and fold-belt basins of Africa, the Middle East and Central Asia

Petroleum basin focus

Exploration strategy

Near-term programme

• Asia: Nam Con Son Basin (Vietnam and Indonesia)

• North Sea: UK Central North Sea and Norwegian North Sea

New Venture Activity

• Rift Basins: new acreage in the North Sea, Asia and potentially North/East Africa or Central Asia

• Frontal Fold-belt plays: new acreage in the Middle East or Central Asia

The goal is to deliver 200mmboe 2P reserves through the drill bit focussing

on areas where we have demonstrated skills and expertise

Exploration – Historic performance

• Premier began exploring in 1986, initially via entry

into SE Asia

• To date Premier has discovered net 800 mmboe at

an overall commercial success rate of 22%

• The commercial discoveries have been made in

two basin types:

1) Rifts: Southeast Asia and Norway

2) Frontal Fold-belts: Pakistan

• The success rate in these basin types is ~40%

• Since 2000 the exploration success has been

dominated by Rift Basin exploration in Asia and

latterly in Norway

800

Premier Discoveries 1986-2009* (net mmboe)

500

400

200

100

01985 1990

300

600

700

1995 2000 2005 2010

* Does not include Egypt

Annual discoveries

Cumulative annual

discoveries

500

Premier Discoveries 1988-2009 (net mmboe)

350

300

150

50

01988 1992

250

400

450

Annual discoveries

Cumulative annual

discoveries

200

100

1996 2000 2002 1992

Exploration in SE Asia – Historic performance

• Premier entered SE Asia in 1986

• Premier has discovered 450 mmboe of net

resources in SE Asia

• All discoveries are within Tertiary rift Basins

• 16 discoveries:

– 12 Commercial discoveries

– 4 under appraisal or being commercialised

• Overall success rate 50%

• Value has been created from rift basin exploration

in Asia

Exploration in SE Asia 1986-2009

Modified from P.Tognini, SEAPEX 2007

2) Continued Rifting Fluvial,

alluvial and lacustrine

deposition

SOURCE & RESERVOIR

3) “Sagging” Marine incursion

RESERVOIR & SEAL

1) Rifting Initiation Lacustrine

and alluvial/fluvial deposition

SOURCE ROCK

SE Asia rifting and inversion – example from West Natuna

SE Asia – Development of rift basins

Anoa Pelikan

4) Onset of Inversion Local

erosion on highs and

deposition in lows

TRAP

5) Continued Inversion

Transgression and more

marine influence

SEAL,TRAP & CHARGE

6) Present Day Marine deposition

through to Plio-Pleistocene with

minor inversion

MIGRATION & ENTRAPMENT

Anoa PelikanGajah Baru

SE Asia rifting and inversion – example from West Natuna

SE Asia – Development of rift basins

1989

In 1989 Premier Oil discovered the

Songkhla Field in the Gulf of Thailand

Songkhla Basin, a Tertiary rift basin

with an excellent lacustrine source rock

and good fluvio-lacustrine sandstone

reservoirs.

Where could we find another one?

Maybe in the Tanintharyi Basin…

Myanmar exploration

Tanintharyi Basin

Songkhla Field

Tanintharyi Basin

Rift / Sunda Fold

Like the Songkhla Basin, the Tanintharyi Basin was a classic rift graben.

It also exhibited tantalizing inversion anticlines.

• Premier negotiated Myanmar

blocks M13 and M14 to

explore the Tanintharyi Basin

• 2D seismic acquired over the

broader area and a partner

was sought

Myanmar exploration

On the new seismic, on the

margin the Tanintharyi Basin,

out in the open Gulf of

Martaban was a tantalizing…

Premier’s first Offshore Myanmar seismic survey - 1990

Myanmar exploration – Yetagun

Eureka!

Flat Spot!


Premier farmed out to Texaco and

Block M12 was acquired to completely

cover the Yetagun structure. M12 M13

1992


M14

Blocks M12, M13 and M14 were explored extensively, including two wells in

the Tanintharyi Basin but it was the first well, Yetagun Field that yielded the

prize, in a classic rift setting.


Yetagun Field

Yetagun Field Reserves (As reported by a leading industry scouting service):


2002 (13 Wells)

Recoverable Reserves (p+p)

3,170 bcf Sales Gas

Peak Gas Production

(420 mmcf/d)

82 mmbbl Condensate

Peak Condensate Production

(12,000 b/d)

1995 (4 Wells)

Approximately 700 bcf

“appears to be subeconomic”

6

Restructuring

Premier Oil sold out of

Yetagun and used the funds to

buy back 50% of Premier’s

outstanding shares from two

major corporate shareholders.

This move freed Premier of

debt and external control,

adding to shareholder value.

M12 M13

M14

2003

Yetagun value creation

Natuna Sea Block A

Anoa Field

Indonesia – Natuna Sea Block A

Anoa

Natuna Sea Block A, located over the West Natuna contains classic inverted

rift grabens. In the 1980s these features were exploited for oil but Premier

saw the potential gas market and set about exploring for gas.

N

Naga-1

S

Gajah Baru

Natuna Sea Block A – Fields in Sunda folds

Natuna Sea Block A – Premier initial gas resources

Gas Resources

No Certified Gas

In 1996 Natuna Sea Block A

contained the stranded Anoa

gas, nominally 476 bcf, plus 3

old exploration wells that had

tested gas.

1996

Natuna Sea Block A – Premier 2009 gas reserves

Gas Reserves (2P)

2009 Certified Gas Reserves

Anoa Field 1192 BCF

Beruang 32 BCF

Gajah Puteri 150 BCF

Bison 57 BCF

Pelikan 158 BCF

Naga 137 BCF

Iguana 29 BCF

Gajah Baru 353 BCF

Total 2108 BCF

2009

Chronology of Premier Oil in Natuna Sea Block A

1996 Premier Oil buys 67% of Natuna Sea Block A (476 bcf nominal)

1997 Certification of Existing gas : 706 bcf 2P

1998 Total 1001 bcf 2P certified. Gas Sale to Singapore.

Oil price low. Gas price is linked to price of HSFO.

1999 Develop Anoa gas production facilities.

Build WNTS gas pipeline to Singapore.

2000 Gas production underway

Drill Naga-1, Iguana-1 and Gajah Baru-1, all gas discoveries

2001 Certified reserves 1680 bcf 2P

2002 Oil price going up. Gas price is linked to price of HSFO

2003 Sell part of Natuna Sea Block A for Corporate Restructuring

2007 Oil price WAY up. Gas price is linked to price of HSFO!!!

2008 Certified reserves 2108 bcf 2P

2009 2nd gas Sale to Singapore.

Build gas production facilities on Gajah Baru

Gas price remains relative to oil price

Natuna Sea Block A – Value creation

Natuna Sea Block A Value Creation

*

* Indicative value not absolute

12W

07/03

Tuna

Natuna Sea Block A

Nam Con Son Basin /

East Natuna Sea

Natuna Sea Block A

• Discovery Q4 2006

• 3D seismic in 2007

• Appraisal drilling in 2008

• Currently under development

• First Oil in 2011

Vietnam – Block 12W Chim Sao

Vietnam Block 12W Chim Sao Field

12W-CS-1X

Premier equities

• 07/03: 30% and operator

• Tuna: 65% and operator, target equity 40% pre-drill

Prospectivity

• 10-15 leads and prospects

• Cá Rồng Đó discovery May 2009 (10 mmb to 70

mmboe gross resource)

• Cá Rồng Vang - P&A December 2009

• Resource potential 30-100 mmbo per prospect

2010 Plan

• Fully interpret existing 3D

• Acquire 3D over central part of Block 7/03

• Drill 2 Tuna prospects

2011 Plan

• Appraise Cá Rồng Đó discovery

• Drill exploration wells in 07/03 & Tuna

An integrated play based approach to exploration

Exploration – Vietnam / Indonesia – Nam Con Son

• Premier entered Norway in 2005; two

successes from first two exploration wells

• OILEXCO acquisition now permits

exploration in the UK CNS Rift basin

• Active 2010 programme targeting

50 - 200 mmboe net to Premier:

Prospect Potential

(mmboe gross)

Gnatcatcher 31-60 mmboe

Gardrofa 15-115 mmboe

Greater Luno 30-150 mmboe

Blåbaer 15-75 mmboe

Bugle North 10-22 mmboe

Oates 25-107 mmboe

Catcher 18-33 mmboe

Premier has used its experience in Rift basin exploration to enter Norway

and now the UK

Gnatcatcher

Moth/Lacewing

Gardrofa

Greater Luno

Blåbaer

Bugle Appraisal

Bream

Oates

Catcher

Exploration – North Sea

• Through it’s long history of exploring Tertiary rift basins in SE Asia; Premier Oil

has an impressive record of success and has made a number of significant

discoveries, including the giant Yetagun field.

• To create value from these discoveries Premier Oil followed-up exploration

success with tenacious commercial efforts.

• In SE Asia Premier Oil has established core areas for exploration and

production in Indonesia and Vietnam over classic Tertiary rift basins. These

areas will continue to anchor Premier Oil in the region following this proven

exploration theme.

• Premier has expanded its Rift Exploration expertise to the North Sea.

• The plan is to further expand the rift based exploration to at least one new area

Summary

creating value from rift basin · pdf file · 2015-01-10creating value from rift...

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