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					2010 Annual Results Presentation




                           24th March 2011
2010 Annual Results Presentation   24th March 2011
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.




24th March 2011 | Page 2
Agenda


        Highlights and progress against strategy   Simon Lockett

        2010 financial results                     Tony Durrant

        Exploration update                         Andrew Lodge

        Operations update                          Neil Hawkings

        Summary                                    Simon Lockett




24th March 2011 | Page 3
2010 highlights

• On track for production of 75,000 boepd in 2012

• Development portfolio building towards
  100,000 boepd in 2014

• 8 out of 14 exploration and appraisal wells
  successful

• Operating cashflow up 25% to $436.0 million

• Record profits after tax of $129.8 million

• $1.1 billion of UK tax allowances - mitigating the
  impact of proposed tax changes

• Cash and undrawn bank facilities of $1.2 billion

24th March 2011 | Page 4
Building three quality E&P businesses

Strategy
• Grow near-term production to
  75 kboepd from existing 2P
  reserves of 261 mmboe

• Deliver further growth by
  commercialising contingent
  resource base of 228 mmboe

• Add 200 mmboe through
  exploration by focusing on core
  geologies

• Make value-adding acquisitions
  in three core areas

• Maintain a conservative
  financing plan

   Creating an overall business with 400 mmboe of reserves
        and 100 kboepd production in the medium term


24th March 2011 | Page 5
2010 financial results




24th March 2011 | Page 6
Production and income statement
                                           12 months to   12 months to   Highlights
                                            31 Dec 2010    31 Dec 2009
Working Interest Production (kboepd)               42.8           44.2    Average Brent oil price was $79.5/bbl
Entitlement Interest Production (kboepd)           38.3           40.2    (2009: $61.7/bbl)
Realised oil price ($/bbl)                         79.7           66.3    Average gas pricing ($/mcf)
Realised gas price ($/mcf)                          6.3            5.2                      2010           2009
                                                                          Singapore         $13.9         $11.0
                                                                          Pakistan           $3.5          $3.2

                                                   $m              $m     Includes impairment charges of
Sales and other operating revenues                 764             621    $65.3 million (2009: $24.0 million)
Cost of sales                                    (531)           (361)    Operating costs per barrel ($/bbl)
Gross profit                                       233             260                      2010           2009
Excess of fair value over purchase consideration     -               6    UK               $28.7          $23.2
                                                                  (77)    Indonesia          $8.5         $10.0
Exploration/New Business                          (87)
                                                                          Pakistan           $2.0           $1.9
General and administration costs                  (18)            (18)
                                                                          Group            $13.9          $12.2
Operating profit                                   128             170
Financial Items                                   (27)            (90)    2010 includes non-cash mark to market
Profit before taxation                             101             80     gain on hedging of $39 million (pre-tax)
Taxation credit                                     29             33     Tax credit arises due to UK tax allowances
Profit after tax                                   130            113     acquired with Oilexco



24th March 2011 | Page 7
Group taxation position

                    12 months to 12 months to         UK Tax Allowance Position
                     31 Dec 2010 31 Dec 2009                                           at 31 Dec 2010
                             $m           $m                                                      $m

 Overseas                    56.9          73.0       Allowances remaining at 1/1/10           1,098
 UK                                                   Net additions in 2010                       14
   PRT                       25.9          23.2                                                1,112
   CT                          nil        (23.4)      Recognised as deferred tax asset           972
 Prior period revisions     (21.3)        (24.6)      Currently unrecognised                     140
 Current charge              61.4          48.2       Tax allowances carried forward           1,112
 Deferred tax credits       (90.4)        (81.3)
 Tax credit for the year    (29.0)        (33.1)


                     Outlook
                     • UK cash corporate taxes not anticipated until at least 2016
                     • Mitigates impact of proposed tax changes
                     • UK allowances of $140 million not yet recorded

24th March 2011 | Page 8
Cash flow

                                  12 months to   12 months to   Estimated Capex split ($m)
                                   31 Dec 2010    31 Dec 2009                        2010    2009
                                           $m             $m
                                                                Development          349     195
 Cash flow from operations                505            419    Exploration          165     108

 Taxation                                 (69)           (71)                        514     303

 Operating cash flow                      436            348
                                                                Balance sheet ($m)
 Capital expenditure                     (514)          (303)
                                                                                     2010    2009
 (Acquisitions)/disposals, net             13           (643)
                                                                Cash                 300     251
 Finance and other charges, net           (70)           (55)   Net Debt             406     245

 Pre-licence expenditure                  (19)           (20)   Undrawn facilities   902     398

 Net cash flow                           (154)          (673)


      Outlook
      • Forecast full-year 2011 spend of $500m (development) and $200m (exploration)
      • Peak net debt of around $800 million in 2012 using $75/barrel

24th March 2011 | Page 9
Forward economics

            80
                  $79/bbl                $75/bbl                   $100/bbl       OPEX
            70                                                                    Tax
                                                                                  Cash Margin
            60

            50
    $/boe




            40

            30

            20

            10

            0
                   2010A            2012E      2014E           2012E      2014E

                            New projects lead to improved cash margins

24th March 2011 | Page 10
Exploration update




24th March 2011 | Page 11
Progress towards 200 mmboe of discoveries

Exploration and Appraisal Drilling        Global exploration:
                                          Forecast resource additions (mmboe)
• 14 wells drilled, 8 successful
                                          250
• Discoveries at Catcher, Catcher East,          Target cumulative risked additions
  Varadero, Blåbaer and West Rochelle            Actual cumulative proved and probable discovered resources
                                                 Actual cumulative plus possible resources
• 27 mmboe reserves and resources added   200
   – Upside to 50 mmboe with appraisal

New Ventures                              150

• Licence round awards:
   – 19 blocks awarded in UK              100
• Farm-ins:
   – UK block 15/26c (West Rochelle)
                                          50
   – UK block 15/13b (Eagle)
   – North Red Sea Block 1 (Cherry)
• Under negotiation:                        0
                                                2009   2010       2011      2012      2013      2014
   – 2 blocks in Kenya

24th March 2011 | Page 12
Exploration drilling 2011
                                                                                    2011                                      • > 300 mmboe
Asia                                                   Q1                     Q2                 Q3                      Q4
                                                                                                                                unrisked resource
Vietnam      07/03                CRD Appraisal             Ocean General
             104/109-05           Jackfruit                                                           Aquamarine
Indonesia    Tuna                 Gajah Laut Utara                             Ocean General
                                                                                                                              • 2011 full year
                                  Belut Laut                                   Ocean General                                    exploration
             Buton                Benteng                                                                                       expenditure
             Natuna Sea Block A   Anoa Deep                                    West Callisto
                                  Biawak Besar                                                           West Callisto
                                                                                                                                ~ $200 million
             Block A Aceh         Matang-1                                                                                      pre-tax
North Sea
Norway       PL406 (8/3)          Gardrofa                                                            Bredford Dolphin
             PL378                Grosbeak Appraisal                           Songa Delta
UK           P1430                Burgman                   Galaxy II
                                  Carnaby
             P1466                Bluebell

Middle East - Pakistan                                                                                                            Firm Wells:
Pakistan     Kadanwari            K-25ST                    Weatherford 812                                                       Rig Contracted
                                  K-28                                                                Weatherford 812             Firm Wells:
                                  K-29                                                                Weatherford 812             Rig TBC
                                  K-27 SE-1                                    Weatherford 812                                    Contingent Wells
             Bhit/Badhra          Badhra-6 (Parh)                                                     Weatherford 812
                                  Badhra Appraisal                                                                                All well timings are
                                                                                                                                  subject to revision for
Egypt        North Red Sea        Cherry                    Stena Forth                                                           operational reasons


          12 to 15 exploration and appraisal wells already planned in 2012

24th March 2011 | Page 13
Appraisal – Vietnam – Block 07/03 – Cá Rồng Đỏ

Cá Rồng Đỏ
• Premier 30% equity
• Gross resource estimate 10-60-80 mmboe
• CRD-2X appraisal well spudded 10 February 2011
Well status
• TD at 3785 metres
• Drill stem testing hydrocarbons discovered in Oligocene sands
                    CRD-2X                         CRD-1X

SE                                                                NW
                                                                         CRV        CRD-1X CRD-2X




                            Anomalies associated
                                with Gas




                    Cau Sequence




                                                                       Top Cau Depth Map




24th March 2011 | Page 14
Exploration – Indonesia – Tuna Block

Belut Laut / Gajah Laut Utara
• Reserves estimate 40-90-200 and 65-160-350 mmboe respectively
• Targeting multiple stacked Miocene and Oligocene reservoirs in fault
  dependent closures – Belut Laut prospect is independent of Gajah
  Laut Utara
• Belut Laut is amplitude supported
   – Belut Laut: low risk for gas, moderate risk for oil
   – Gajah Laut Utara: moderate risk for oil and gas
• Back to back wells planned for Q2 2011 following CRD well
           Gajah Laut Utara                                                    Belut Laut
    PTD 4250m MD (3550m TVD)                                     PTD 4300m MD (3870m TVD)

W                                             E      NW                                         SE




                                        PRIMARY
                                                                                            PRIMARY
                                        TARGET
                                                                                            TARGET



                                        SECONDARY
                                          TARGET
                                                                                            SECONDARY
             PTD                                                              PTD
                                                                                              TARGET



2 Km                                                  2 Km

24th March 2011 | Page 15
Exploration – Indonesia – Natuna – Biawak Besar

Biawak Besar (Natuna PSC)
• Premier 28.67% equity
• Reserves estimate 66-79-92 bcf
• Targeting Miocene reservoirs in a stratigraphic trap, off structure from
  the Iguana gas discovery
• Seismic attribute analysis and 3D inversion supports presence of gas
• Play opening well – low risk for gas
• Planned for Q4 2011

                                                             Bison           Iguana         Biawak Besar

                                                      NW                                         SE
                            Iguana Discovery




                             Biawak Besar-1




 Top Arang Depth                                                                                 PRIMARY
                                                                                                 TARGET
  C.I.=100 metres                                                                     PTD
      2000m                                           3D Seismic Inversion
                                                       indicating gas pay

                                                      500m

24th March 2011 | Page 16
Exploration – Vietnam – Block 104-109/05

Block 104-109/05
• Premier 50% equity
• Exploration well to test prospect with reserves
  range estimate of 30-60-140 mmboe
• High risk for oil, moderate risk for gas
• Planned for Q3 2011




                                          W         E         Base Tertiary




                                                    T300



                                                    T400

                                                    T500
                                        T600
                                        Coals




                                                    T700



                                                    T1000 Base Tertiary




24th March 2011 | Page 17
Exploration – UK – Block 28/9 – Summary

Block 28/9 (P1430)                                                           Eocene – Tay Amplitudes          Catcher
                                                                                                               North
• Combined Eocene and Palaeocene play                                                        Varadero


• Shallow (1350m)
• Amplitude supported
• Six penetrations drilled to date on Catcher,                                                                 Catcher
                                                                                                                East
  Varadero and Burgman
                                                                                                       Catcher Main
   – Excellent reservoir quality                          Block 28/9
                                                                             Carnaby   Burgman
   – High oil saturations (80-90%)
   – 24° to 31° API oil, low viscosity
• Catcher North, thin Cromarty sands conform to low
  amplitudes on seismic data
• Exploration well campaign ongoing
   – Burgman currently being sidetracked                                   Varadero


   – Carnaby well deferred                            Burgman

• Development planning on going
                                                                       Catcher
   – New 3D seismic is planned on the block in 2011




24th March 2011 | Page 18
Exploration – UK – Burgman

Burgman                                                                                                 Cromarty Depth Structure
                                                                 Varadero
• Premier 35% equity
• Burgman vertical well encountered:
   – 22 feet net hydrocarbon pay in Tay section                                                                      Burgman location
                                                                                    Catcher E
         – 12 feet of gas in the Upper Tay
                                                                             Catcher Main
         – 10 feet oil in the Lower Tay sandstones
   – 400 feet oil column                                        Burgman

   – Cromarty and Jurassic sands were not
     hydrocarbon bearing
• Well being sidetracked to the South East
• Prospective resource estimates 15-35-60 mmbo
                    Burgman        Burgman ST                                                             Burgman

          NW                                     SE   S                                                         Upper Tay               N




                                                                                            Lower Tay
                                                                                                               Cromarty
                                                      Carnaby



                                                                                                                       Fulmar
                                                                          Burgman




24th March 2011 | Page 19
Exploration – Egypt – North Red Sea – Block 1

Cherry (North Red Sea – Block-1)
• Premier 20% equity
• Hess operator - proven deep water expertise
• Water Depth - prospects/leads in ~700m WD
• Multi-billion barrel unrisked potential in two
  independent plays
• NRS-2 well present depth 4500m, estimated
  time to target 20-30 days




                                  New Rift Plays

24th March 2011 | Page 20
Exploration – Kenya – Deep water Rift plays

L10A & L10B
• Provisional award accepted by joint venture
    – Subject to fully termed PSA
    – Expect award in 2Q 2011
• Premier equity
    – L10A: 20%, L10B: 25%
• BG operator
• Area >10,000 sq km
• Water depth 500-1700m
• Commitments:
    – Seismic acquisition in first term (2 years)
• Forward Plan:
                                                                             L10A            L10B
    – Acquire 2D and 3D seismic data (2011/2012)                             BG        40%   BG        45%
                                                                             Premier   20%   Premier   25%
                             Blocks L10A & L10B                              Cove
                                                                             Pancon
                                                                                       25%
                                                                                       15%
                                                                                             Cove
                                                                                             Pancon
                                                                                                       15%
                                                                                                       15%


 W                              Rift Margin Plays      Inverted Rift Play                              E




                                                                                 New Rift Plays
 MOMBASA     INBOARD
   HIGH    TERTIARY RIFT        CENTRAL PLATFORM    INVERTED JURASSIC RIFT


24th March 2011 | Page 21
North Sea – acquisition / new ventures

                            UK: 2010 New acreage
                             • In 2010 Premier secured interests in 19 new
                               North Sea exploration blocks
                             UK – West Orkney
                             • Frontier acreage targeted a Devonian pre-rift system
                             • Existing data to be reprocessed in 2011 with an optional well in 2013
                             UK – 15/9, 10, 13b, 14 and 15
                             • Lower Cretaceous and Tertiary play fairways
                             • 3D acquired in 2010
                             • One well planned in 2012
                             UK – 15/23g, 14/30b, 15/26c
                             • Near field exploration
                             • Successful West Rochelle well in 2010
                             UK – 21/7b
                             • Tertiary amplitude play
                             • Well planned for 2012
                             UK – 22/21c, 22/26c
                             • Pre Cretaceous target
                             • 3D planned in 2011

                            Norway: 2011 New acreage
                             Norway – 35/12
                             • Upside potential to Grosbeak
                             Norway – 2/6
                             • Multiple target block secured on a drill or drop option


24th March 2011 | Page 22
Prospective resource portfolio

• Unrisked prospect portfolio of 1800 mmboe            Total Portfolio Unrisked Prospective Resource
                                                        Resource under appraisal
   – 800 mmboe in prospects                                         105 mmboe

   – 1000 mmboe in leads


• Represents a 300 mmboe increase during 2010             Prospects
                                                                                    Total
                                                                                   >1900
                                                                                               Leads
                                                        800 mmboe                              1000 mmboe
                                                                                   mmboe
   – New acreage aquired in the North Sea
     and Egypt
   – Prospect maturation in the North Sea

                                                       Total Portfolio Risked Prospective Resource
• The total portfolio on a risked basis is 240 mmboe
                                                        Resource under appraisal
   – The prospect inventory is 160 mmboe                            105 mmboe
                                                                                            Leads
   – The lead inventory is 80 mmboe                                                         80 mmboe


                                                                                    Total
                                                                                    >340
        On track to deliver 200 mmboe                                              mmboe
           of 2P reserves by 2015                                                           Prospects
                                                                                            160 mmboe




24th March 2011 | Page 23
Operations update




24th March 2011 | Page 24
Operations highlights

• Good production performance in Indonesia and Pakistan
    – Offset by recent downtime in the UK portfolio

• Material progress on Chim Sáo, Gajah Baru and Huntington
    – On target for 75,000 boepd in 2012

• Continued progress on the future development portfolio
    – New Asia projects progressing for 2013/14 start-up
    – MoU signed on Solan participation
    – On track for 100,000 boepd in 2014



24th March 2011 | Page 25
Production update

  Production (working interest)
  (kboepd net)
  50
         Middle East-Pakistan
                                                      • Continued growth in Pakistan
  45     North Sea / W. Africa                          production in 2011
         Asia
  40                                                  • Industry HSE related downtime in
  35
                                                        the UK in 1Q 2011
  30
                                                      • Singapore gas demand strong
  25
                                                      • 2011 full year production forecast
                                                        in the range 45-50 kboepd
  20

  15

  10                                                          Current production split
    5                                                     63% gas and 37% oil, but 62%
                                                         of production is linked to oil price
   0
        2006    2007       2008   2009   2010 2011E


24th March 2011 | Page 26
Pakistan production update

• Successful infill drilling at Kadanwari has increased      Kadanwari Production - Net WI
                                                             (boepd)
  production rates
                                                             3000
• Minor impact from flooding seen at Zamzama
                                                             2500
• Qadirpur initial licence term was extended by five years   2000
• Compression projects on schedule:                          1500
   – Qadirpur and Bhit completed                             1000

   – Zamzama due May 2011                                    500

• Continued strong production is anticipated                   0
                                                                    2006   2007   2008   2009   2010   2011E




24th March 2011 | Page 27
UK production update

UK Production by Week
(kboepd net)
18
                                            Balmoral Area                • Industry wide issue driven by a need to
16
                                            Wytch Farm                     improve performance and increased
                                            Scott and Telford
                                            Kyle and Others                HSE enforcement action
14
                                                                         • Wytch Farm shutdown in November to
12                                                                         address pipeline integrity issues
10                                                                       • Balmoral shutdown in December to
 8                                                                         address fabric maintenance issues

 6                                                                       • Various maintenance related production
                                                                           restrictions / shutdowns at Scott
 4
                                                                         • Consistent production from Kyle
 2

 0
     Sep 10   Oct 10   Nov 10   Dec 10   Jan 11     Feb 11      Mar 11


              2011 group production expected at low end of range, no impact on 2012


24th March 2011 | Page 28
Indonesia production and development update

• 2010 was a record year for Block A gas sales
      – Sold 160 bbtud vs a DCQ of 126 bbtud
      – Opportunity to increase GSA1 DCQ at 1/1/2014
• Gajah Baru builds up to a DCQ of 130 bbtud in 2012
• In 2011 expect to approve:
      – Anoa phase 4 compression expansion (2013)
      – Pelikan and Naga field developments (2013)
• Total sales capacity will increase to 400 bbtud

West Natuna Sales to Singapore (GSA1 Only)
(bbtu/d)
180
160
140
120
100
80
60
40
20                                                        Natuna ‘A’ 2014
 0
      2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


24th March 2011 | Page 29
Development drilling at Anoa




24th March 2011 | Page 30
Progress towards 75,000 boepd




   Gajah Baru               Chim Sáo   Huntington




24th March 2011 | Page 31
Gajah Baru development update

• Phase 1 development drilling successfully completed
   – Wellhead platform installed in September 2010
   – 5 wells drilled and completed
   – Significantly higher deliverability than planned
   – Small reserves increase anticipated

• Central Processing Platform (CPP) progressing well
   – Jacket was 86.9% complete at end Feb
     – Installation planned for late May-early June
   – Topsides were 78.9% complete at end Feb
     – Installation planned for early July
   – Gas Export Pipeline to be installed in June-July

• First gas remains on schedule for October 2011

• Premier 28.67% equity



24th March 2011 | Page 32
Gajah Baru CPP jacket to be installed in June




24th March 2011 | Page 33
Gajah Baru CPP topsides nearing completion




24th March 2011 | Page 34
Chim Sáo development update

• Very successful 2010 installation program:
   – Wellhead platform                                       CS-N1P              CS-N4I


   – Gas Export Pipeline                                            CS-2X

   – Sub-sea flow-lines                                    CS-N2P


• Development drilling commenced in June
                                                                               CS-N5I
   – 5 producers and 3 injectors will be available at        CS-N3P

     first oil                                              CS-S6P

   – MDS-5 reservoir is better quality than anticipated                                   CS-S13I


   – MDS-6 reservoir is close to prediction                                                   CS-S12I

                                                             CS-S7P
• FPSO (Lewek Emas) is 90% complete and                                        CS-S10P


  approaching mechanical completion                          CS-S8P
                                                                       CS-S11P          OWC

   – Commissioning is now the key project activity
                                                                         CS-1X-ST1

• Development project in line with budget                 CS-S9P                        CS-S14I


• First oil is forecast for late July 2011
• Premier 53.125% equity                                             CS-S15I




24th March 2011 | Page 35
Chim Sáo – Lewek Emas FPSO
              March 2010     March 2011




              October 2010




24th March 2011 | Page 36
Huntington – on schedule for 2012

    • Field development plan approved – project sanctioned early November 2010
    • Contract awarded to Sevan for provision of Voyageur FPSO
    • Drilling template installation late March 2011
    • Ensco 100 jack up rig selected, spud expected May 2011 – four well initial programme
    • Subsea installation to commence July 2011
    • FPSO sail-away October 2011
    • Target first oil is Q1 2012




24th March 2011 | Page 37
Rochelle development update

• Western Rochelle well and sidetrack
  encountered gas-bearing sands
• DECC have determined a single field
  development area
• Phase 1 covering East area –                                              Rochelle
  sanction in May for 4Q 2012 first gas
• Phase 2 West area to be integrated      15/26b
                                                    15/26c
  later in 2011
                                                                Kopervik pinch-out
• Scott tariff arrangements – parties              15/26b-10z

  working towards early conclusion                 15/26b-10

                                                                                     Rochelle FDA
• Plan for unitised development with
  15/27, equity under discussion




24th March 2011 | Page 38
Progress towards 100,000 boepd




        Frøy                        Catcher
                            Solan




24th March 2011 | Page 39
Frøy development status

• Technical concept selection near complete
   – Sevan 300 FPSO bridge linked to a WHP
   – Water and gas injection to optimise reservoir development
     (70 mmbbl)
   – Third party field tie-ins being prioritised

• Work programme for Q2 is focused on commercial
  arrangements
   – FPSO contracting
   – Third party field tie-in arrangements
   – Gas offtake arrangements

• FEED studies to commence mid year

• Project sanction gate in Q4 2011

• Target first oil for late 2014




24th March 2011 | Page 40
Catcher development scenario

• Current exploration drilling programme on Block     Illustrative Catcher Development
  28/9 is nearing completion
   – Reserves distribution is being clarified
   – New 3D seismic shoot planned for April/May

• Premier keen to progress to development
   – Most likely scenario is a standalone FPSO
   – Sub-sea tie backs from Varadero and Burgman
   – Reservoir modelling ongoing for Catcher and
     Varadero, due to complete mid year
   – Drilling studies currently focused on wellbore
     stability and completion design
   – Gas export pipeline

• Formal concept selection process to commence
  in Q2 followed by FPSO market enquiries

• Project sanction targeted for mid 2012

• First oil targeted for mid 2014



24th March 2011 | Page 41
Solan development status

Development Concept
• Changed to conventional jacket with Not
 Permanently Attended accommodation,
 but still with a sub-sea tank
• Two producers and two injectors
• Internal project reviews ongoing to
 validate reserves, costs and schedule
• Full project sanction expected Q2 2011
• First oil Q3 2013


Commercial Arrangements
• Premier and Chrysaor signed MoU on 16 March 2011
• Premier will participate in the development with a 60% equity
• Premier will provide Chrysaor with a bridging loan to fund their remaining project costs
• Chrysaor will repay the loan via a cash sweep to Premier of a share of their revenue
• Operatorship arrangements still to be discussed
• Intention is to sign a full SPA by mid April


24th March 2011 | Page 42
A path to 100,000 boepd

  Production                                                Development capex
  (kboepd net)                                              ($m)
  120     Future Asia developments                          800                               Future Asia developments
          Future Norway developments                                                          Future Norway developments
          Future UK developments                                                              Future UK developments
          Huntington                                                                          Huntington
          Chim Sáo, Gajah Baru                              700                               Chim Sáo, Gajah Baru
  100     On production                                                                       On production

                                                            600
   80
                                                            500

   60                                                       400

                                                            300
   40
                                                            200
   20
                                                            100

    0                                                        0
        2011     2012       2013       2014   2015   2016         2011   2012   2013   2014   2015       2016


24th March 2011 | Page 43
Summary




24th March 2011 | Page 44
Building three quality E&P businesses

 Target                           Asia                   MEP                    North Sea
                              Chim Sao and
 75,000 in 2012                                    Pakistan growth              Huntington
                               Gajah Baru
 Commercialise              Future Singapore           Tight gas            Catcher, Solan
 potential developments            gas                opportunity              Norway
 Add 200 mmboe                Natuna Sea /                                 UK Central North
                                                 North Africa rift plays
 from exploration             Nam Con Son                                  Sea and Norway

 Acquisitions                                Targeting core area acquisitions

 Financially
                                    Debt capacity increased and maturity extended
 conservative



            Building three quality businesses delivering 100 kboepd from 400 mmboe

24th March 2011 | Page 45
Appendix




24th March 2011 | Page 46
Reserves and resources

       Reserves and contingent resources
       (mmboe)
       500
                   2C contingent resources                                              227
       450         2P reserves
       400
       350

       300
       250                                                                              261
       200
       150

       100
        50

          0
                  2006         2007          2008   2009   Production   Additions &   End 2010
                                                                         Revisions

24th March 2011 | Page 47
Hedging

                            • Policy unchanged: secure cashflows via floors or
                              forwards to fund investment programme even at
                              low oil prices
                            • 2010 Impact
                               – Income statement gain of $39 million as past
                                 provisions unwind
                               – Cash cost of $8 million on maturing hedges


                            Outlook
                            • Approximately 26% of forecast liquids production for
                              2011/12 capped at average of $87
                            • Approximately 19% of forecast gas production from
                              Indonesia for 2011/12 and 1H 2013 is capped at
                              $500 / MT
                            • Future hedging plans will depend on development
                              programme requirements relative to cashflow


24th March 2011 | Page 48
End 2010 2P reserves and contingent resources

                                                North Sea/     Asia          MEP    Total
                                                 W Africa
          2P Reserves
                             On production         31.0        23.5          26.1   80.6

                              Approved for
                                                   11.7        83.8          15.4   110.9
                              development
                               Justified for
                                                   20.8        46.9           1.6   69.3
                              development

                            Total Reserves         63.5       154.2          43.1   260.8

         2C Contingent        Development
                                                   50.6        0.3            0.0   50.9
          Resources             pending
                             Un-clarified or
                                                   32.0        30.1          18.9   81.0
                                on hold
                            Development not
                                                   30.8        63.6           1.4   95.9
                             currently viable
                            Total Contingent
                                                  113.4        94.0          20.3   227.7
                               Resources
           Total Reserves & Contingent
                                                  176.9       248.2          63.4   488.5
                    Resources

                               These figures do not include prospective resources

24th March 2011 | Page 49
Indicative field rates

           Indicative Net New Field Rates                        Equity    Net Initial
                                                                   %      Rate (boepd)

           2012
           UK                       Huntington                   40.00       9,000
                                    Rochelle                      TBA        2,000
           2013
           UK                       Solan                        60.00       7,200
                                    Caledonia / Ptarmigan Area   80.00*      5,000
           Norway                   Bream                        20.00       6,000
           Asia                     Dua                          53.13       5,000
           2014
           UK                       Catcher Area                 35.00      10,000
                                    Fyne                         39.90       8,000
           Norway                   Froy                         50.00      18,000
           Asia                     Block A Aceh                 41.67       5,000
          Figures are Unrisked
          * Caledoneia 100%, Ptarmigan 60% equity


24th March 2011 | Page 50
Progress on other developments

 Block A Aceh (Indonesia)             Dua (Vietnam)                     Bream (Norway)
 • PSC extension approved             • FEED in progress                • Preferred FPSO identified
 • EPCI tender to be issued shortly   • Development being optimised     • Negotiations in progress
                                                                        • Gardofa to be drilled in Q3




 Caledonia and Ptarmigan (UK)         Grosbeak and Blåbær (Norway)
 • Awaiting results from Bluebell     • Grosbeak appraisal imminent
   exploration well                   • Blabaer is a possible tie-back to Jordbaer (PDO submitted)

24th March 2011 | Page 51
Exploration – Indonesia – Block A Aceh

Matang (Block A Aceh)
• Premier 41.67% equity
• Medco operator
• Gross reserves estimate 20-40-70 mmboe
• Low risk for gas
   – Gas is the expected phase
   – Critical factor is reservoir presence
   – 250 bcf follow on potential in the success case
• Well planned for Q3 2011
                                          Matang-1
                                          PTD 3000m MD        Top Peutu Depth
                                                              C.I.= 50 metres (structure)
W                                                        E   Carbonate Isochore (color fill)
                                                                        2500m



                                                                                               Matang-1




                                                  1500m

24th March 2011 | Page 52
Exploration – Indonesia – Buton
                            Bentang (Buton PSC)
                            • Premier 30% equity
                            • Japex operator
                            • Prospect reserve estimates 35-100-300 mmboe
                            • High risk for oil, in fold belt theme
                            • Drilling planned Q3 2011



    NW                                     ‘B’
                                     Benteng                                SE




     0            5000
         meters




24th March 2011 | Page 53
Exploration – Indonesia – Natuna – Anoa Deep

Anoa Deep (WL-5 extension) (Natuna PSC)
• Premier 28% equity
• Estimated reserves 47-57-90 bcf
• Targeting Lama Formation reservoirs directly underlying the West
  Lobe platform on Anoa field. Lama Formation produces oil and
  gas in nearby Kakap field
• Moderate risk for gas
• Dilliing planned for Q2 2011

                            Lowest Closing Contour                               Anoa Deep

                                                                      NW                                     SE

             1400 acre

                                                                      Top A




                            WL5
                                                                      Top H



                                                     Top Lama Depth
                                                                      Top Lama
                                                       C.I.=50 feet
                                                                                                   PRIMARY
                                                         5000m                                     TARGET
                                                                                             PTD


                                                                      5 Km

24th March 2011 | Page 54
Exploration – Norway – Grosbeak appraisal

Grosbeak (PL378)
• Premier 20% equity
• Successful Grosbeak well completed in July 2009
   – Close to nearby infrastructure
   – Oil in Middle Jurassic sandstones
   – Estimated reserves 35-80-190 mmboe
• Appraisal well scheduled for Q2 2011
                                                 Grosbeak
                                Discovery well              Appraisal well

                                 S                                              N    Top Brent




                                                                             1500m
24th March 2011 | Page 55
Exploration – Norway – Bream, Gardrofa

Success at Gardrofa will lead to a new core area for Premier in Norway
                                 Bream (PL406)
                                 • Premier 20% equity
                                 • BG operator
                                 • Brent age oil discovered 1971, close to Yme Field
                                 • In 2009,17/12-4 and its sidetracks wells appraised
                                   this discovery, testing 2,516 boepd
                                 • Estimated reserves 39-50-63 mmboe
                                 • Formal concept selection targeted Q2 2011

                    9/1-1 Gardrofa Prospect Well Location

                                                            Gardrofa (PL407)
                                                            • Premier’s first operated licence in Norway
                                                            • Premier 40% equity
                                                            • Untested trap flanking a Salt dome feature
                                                            • Estimated reserves 15-70-115 mmboe
                                                            • Moderate risk for oil
                                                            • Well planned for Q3 2011

24th March 2011 | Page 56
Exploration – UK – P1466 Bluebell

                                                           P1466 Bluebell Prospect (15/24c,15/25f)
                                                           • Premier 60% equity
                                                           • Palaeocene Forties reservoir
                          Bluebell                         • Reserves estimate 9-19-31 mmboe
                                                           • Partial carry by farm-in partner
                                                           • Well planned for Q3 2011
                                                           • Valuable tieback opportunity for Brenda/Balmoral


Top Forties Depth SS, CI=5 m                               Top Forties Lambda Rho Extraction   Near Offset               Bluebell


                               Bluebell Well Location




                                    Bluebell Site Survey


                                                                   Bluebell
Top Forties Lambda Rho Extraction                                                              Lamda Rho, HC Indicator   Bluebell


                                Bluebell Well Location




24th March 2011 | Page 57
Exploration – UK – Carnaby

Carnaby                                                                                            Cromarty Depth Structure
                                                                  Varadero
• Premier 35% equity
• Prospective Resource estimates:
   – Tay reservoir: 20-35-60 mmbo
   – Cromarty reservoir: 15-20-30 mmbo                                                 Catcher E

                                                                               Catcher Main
• Expected phase oil                                                                                             Carnaby Prospect
   – Gas in shallower Eocene targets (Horda Fm)
• Risk assessment                                       Carnaby

   – Moderate risk at Tay level - oil quality
   – High risk at Cromarty level - reservoir presence


                                                                                                   Carnaby


 Eocene amplitude extraction                            S                                                                           N
                                                                                                     Horda

            Varadero                                                                                  Tay


  Carnaby                      Catcher                                                              Cromarty
                                N&E
                                                        Carnaby




                                                                             Burgman




24th March 2011 | Page 58
Exploration – UK – West Orkney Basin

P1577: West Orkney Basin                                             A                                                                A’
                                                                          Terraces with probable
• Premier 100% equity                                                      Devonian source and
                                                                         reservoirs and probable
• 1,700 km2 acreage covering West Orkney Basin depo-centres
                                                                              Zechstein seal
• Shallow water, low cost environment
• Frontier Rift Basin exploration opportunity
• Target is Pre-rift Devonian system preserved in Mesozoic rifts
   – Petroleum system proven - exhumed oil accumulations on Orkney
   – Key uncertainty is presence and preservation of traps
                                                                                                   Half grabens with          Orkney Islands;
   – Material unrisked play potential, presently high risk                                         possible Devonian source   Inverted Devonian
                                                                     Metamorphic highs;            and reservoirs and         basins, with
• Work programme commensurate with risk reduction                    exposed at seabed             proven Zechstein seal      Breached oilfields
   – 6 year concession with a drill or drop option
   – Purchase 6,000 km of existing 2D data
                                                                                                                              West Orkney
   – Reprocess selected lines                                                                                                 Basin Structure
• Go Forward plans                                                                                                            Top Devonian
   – Firm: Purchase, reprocess and interpret data 2011
   – Optional: Acquire new seismic data 2012 and Drill 2013                                          Orkney Isles




           Half grabens with Pre-rift section:
           Potenential for Devonian source
           and reservoirs plus Zechstein seal




24th March 2011 | Page 59
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