Creating Value from

Rift Basin Exploration

Premiers SE Asia Story

Finding Petroleum Conference

January 20th / 21st 2010

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.

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Target and strategy

Exploration is a fundamental part of Premiers growth strategy
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
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Petroleum basin focus

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

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Exploration strategy
The goal is to deliver 200mmboe 2P reserves through the drill bit focussing
on areas where we have demonstrated skills and expertise
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

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Exploration Historic performance

Premier Discoveries 1986-2009* (net mmboe)
800

Premier began exploring in 1986, initially via entry

into SE Asia

Annual discoveries
Cumulative annual
discoveries

700

To date Premier has discovered net 800 mmboe at

an overall commercial success rate of 22%

600

The commercial discoveries have been made in

two basin types:
1) Rifts: Southeast Asia and Norway
2) Frontal Fold-belts: Pakistan

500
400

The success rate in these basin types is ~40%

300

Since 2000 the exploration success has been

dominated by Rift Basin exploration in Asia and
latterly in Norway

200
100
0
1985

1990

1995

* Does not include Egypt

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2000

2005

2010

Exploration in SE Asia Historic performance

Premier Discoveries 1988-2009 (net mmboe)
500

Premier entered SE Asia in 1986

450

400

Premier has discovered 450 mmboe of net

resources in SE Asia

Annual discoveries
Cumulative annual
discoveries

All discoveries are within Tertiary rift Basins

350

250

16 discoveries:
12 Commercial discoveries
4 under appraisal or being commercialised

200

Overall success rate 50%

150

Value has been created from rift basin exploration

in Asia

300

100
50
0
1988

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1992

1996

2000

2002

1992

Exploration in SE Asia 1986-2009

Modified from P.Tognini, SEAPEX 2007

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SE Asia Development of rift basins

SE Asia rifting and inversion example from West Natuna
Anoa

Pelikan

1) Rifting Initiation Lacustrine

and alluvial/fluvial deposition
SOURCE ROCK

2) Continued Rifting Fluvial,

alluvial and lacustrine
deposition
SOURCE & RESERVOIR

3) Sagging Marine incursion

RESERVOIR & SEAL

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SE Asia Development of rift basins

SE Asia rifting and inversion example from West Natuna
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

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Anoa

Gajah Baru

Pelikan

Myanmar exploration
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.

Tanintharyi Basin

Where could we find another one?

Maybe in the Tanintharyi Basin

1989
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Songkhla Field

Myanmar exploration
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

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Tanintharyi Basin
Rift / Sunda Fold

Myanmar exploration Yetagun

Premiers first Offshore Myanmar seismic survey - 1990
On the new seismic, on the
margin the Tanintharyi Basin,
out in the open Gulf of
Martaban was a tantalizing

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Myanmar exploration Yetagun

Eureka!

Flat Spot!

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Myanmar exploration Yetagun

Premier farmed out to Texaco and
Block M12 was acquired to completely
cover the Yetagun structure.
M12

M13

M14

1992
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Myanmar exploration Yetagun

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

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Myanmar exploration Yetagun

Yetagun Field Reserves (As reported by a leading industry scouting service):
1995 (4 Wells)
Approximately 700 bcf
appears to be subeconomic

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)
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Yetagun value creation

Restructuring
Premier Oil sold out of
Yetagun and used the funds to
buy back 50% of Premiers
outstanding shares from two
major corporate shareholders.

This move freed Premier of

debt and external control,
adding to shareholder value.

2003
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M12

M13

M14

Indonesia Natuna Sea Block A

Anoa Field

Natuna Sea Block A

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Natuna Sea Block A Fields in Sunda folds

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.
Naga-1
N

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Gajah Baru

Anoa
S

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
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Natuna Sea Block A Premier 2009 gas reserves

Gas Reserves (2P)
2009 Certified Gas Reserves
Anoa Field
Beruang
Gajah Puteri
Bison

1192 BCF
32 BCF
150 BCF
57 BCF

Pelikan

158 BCF

Naga

137 BCF

Iguana
Gajah Baru
Total

29 BCF
353 BCF
2108 BCF

2009
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Natuna Sea Block A Value creation

Natuna Sea Block A Value Creation
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
* Indicative value not absolute

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Natuna Sea Block A

Nam Con Son Basin /
East Natuna Sea
12W

07/03
Tuna

Natuna Sea Block A

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Vietnam Block 12W Chim Sao

Vietnam Block 12W Chim Sao Field

Discovery Q4 2006
3D seismic in 2007

12W-CS-1X

Appraisal drilling in 2008

Currently under development
First Oil in 2011

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Exploration Vietnam / Indonesia Nam Con Son

An integrated play based approach to exploration
Premier equities
07/03: 30% and operator
Tuna: 65% and operator, target equity 40% pre-drill
Prospectivity
10-15 leads and prospects
C Rng discovery May 2009 (10 mmb to 70
mmboe gross resource)
C Rng 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 C Rng discovery
Drill exploration wells in 07/03 & Tuna
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Exploration North Sea

Premier has used its experience in Rift basin exploration to enter Norway
and now the UK
Blbaer

Premier entered Norway in 2005; two

successes from first two exploration wells

Gnatcatcher

OILEXCO acquisition now permits

exploration in the UK CNS Rift basin
Active 2010 programme targeting
50 - 200 mmboe net to Premier:
Prospect
Gnatcatcher
Gardrofa
Greater Luno

Potential
(mmboe gross)
31-60 mmboe
15-115 mmboe
30-150 mmboe

Blbaer

15-75 mmboe

Bugle North
Oates
Catcher

10-22 mmboe
25-107 mmboe
18-33 mmboe

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Greater Luno
Bugle Appraisal
Bream
Gardrofa
Oates

Catcher

Moth/Lacewing

Summary
Through its 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

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