Zama Discovery Interim Update. 13th July 2017

Transcription

1 Zama Discovery Interim Update 13th July 2017

2 Mexico: 111 years of E&P history, 78 years under state monopoly Premier screening high-graded Sureste Basin as best fit for entry Burgos Onshore, Mature Gas, minor Oil Main Play: Paleogene Deltaics Tampico - Misantla Onshore, Mature Oil + Assoc Gas Main Plays: Jurassic / Cretaceous carbonates 14 Bboe Tampico- Misantla Burgos 2.0 Bboe 0.4 Perdido Deep-Water, Emerging Oil + Assoc Gas Main Play: Neogene and Paleogene clastics Salt plays 0.5 Mexican Ridges Salina del Bravo & Perdido Campeche gas oil Area proportional to discovered resource Mexican Ridges Slope & Deep-Water, Frontier Possible Gas (Tertiary SR), but unknown Main Play: Paleogene & Neogene DW Clastics Campeche Slope & Deep-Water, Frontier Probably Mixed Oil and Gas Main Play: Neogene DW Clastics Salt plays Veracruz Onshore, Mature Gas, minor Oil Main Plays: Cretaceous carbonates; Tertiary deep water sandstones Veracruz Sureste Sureste (offshore) Shallow to Deep-Water, Emerging Oil + Assoc Gas Main Play: Cretaceous / Jurassic carbonates; Neogene clastics Salt plays July 2017 P1 61 Bboe Sureste

3 Mexico: recent Energy Sector Reform Opening of a high potential energy sector to foreign investors after 78 years of state monopoly. Establishment of a clean and transparent process with an independent regulatory body, CNH. Extensive modern datasets made available for a reasonable cost across most basins. CNH and SENER (Ministry) continuing to mature both the licencing process and terms. Bid conditions comprise government take and defined work programme. Mexico offers large tracts of acreage in proven basins with access via a regular tender process. July 2017 P2

4 Mexico: Premier Sureste Basin Licence Position Successful entry (10% carried) into Blocks 2 & 7 in Q Increased equity to 25% (paying) in May 2017 in Block 7, ahead of Zama well Block 7 Premier 25% Talos (op) 35% Sierra 40% Block 2 July 2017 P3

5 Mexico: Block 7 Zama Prospect (Premier 25%) W Zama-1 Well E Talos (op.) spudded the well in 166m of water on 21 May using the Ensco 8503 rig. full stack reprocessed seismic data in depth Premier s pre-drill assessment of Zama was of it being a low risk prospect, with a P50 of 300 MM barrels EURR within a range of MM barrel Flat Spot ENSCO 8503 Zama-1 Well 3D view of the Zama Prospect showing top structure map and seismic amplitudes of the target interval Good conformance of seismic amplitude with structural contours July 2017 P4

6 Mexico - Zama-1 W 1 km 2 km Well was side-tracked to west and contingency 16 liner set above fault. ST drilled ahead to 13 5/8 casing point. Zama-1 Well E days (mid Aug) to drill and evaluate the well to TD of 4400 mtvd (no well test planned). Forecast cost $61.5m gross, $15.4m net to Premier s 25%. Forward Plan: Case current hole section then drill ahead and evaluate the remainder of Zama Main and Zama Deep secondary target. 3 km 4 km Current hole depth 3381 m MD Flat spot PTD 4426 m MD Zama Main Zama Deep 3D view of Zama showing top structure and seismic amplitudes of the main target seismic section (left) runs E-W through well 5 km 2km Good conformance of seismic amplitude with structure July 2017 P5

7 Global significance of the Zama Discovery Sits in top 10 largest offshore commercial oil discoveries of the last 5 years Offshore Oil Discoveries >300 mmboe since (Data courtesy of WoodMac) Reserves (mmboe) Zama pre-drill volume range Liza-Payara Iara Entorno Tulimaniq Carcara Owowo Anchor North Platte SNE Orca Itapu Itapu (Surplus) Snoek Bay du Nord July 2017 P6

8 Zama Illustrative Development Scenario Illustrative development schematic Mexican fabrication capability Development conceptual engineering will commence shortly. Given the scale of the Zama discovery an illustrative fixed installation development could be much as shown here: Single jacket and significant topsides, with capabilities of producing well in excess of 100,000 bopd Single drill centre with wells drilled from the platform A pipeline to the Dos Bocas terminal The development could leverage the significant Mexican country infrastructure and manufacturing plants. In terms of timetable we would expect to appraise in 2018 and to target first oil well within 5 years. July 2017 P7

9 Mexico - Block 7 - Fiscal Terms Royalties Royalty Royalty Sensitivity to Oil Price Gross Revenues Cost Recovery Profit Oil 100% Government Profit Oil (68.99%) Contractor Profit Oil Opex Capex Corporation Tax 30% Contractor Gross Revenues Oil Price $/bbl Representative barrel of oil at $65/bbl 125% Exploration 60% limit of Gross Revenue (per month) Exploration benefits from a 25% uplift July 2017 P8

10 July Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR Tel: +44 (0) Fax: +44 (0)