Harbour Energy Plc · LSE:HBR
Harbour Energy — Premier Oil — Merger or Acquisition (October 2020)
27 slides from Harbour Energy's merger presentation, October 2020
Slide 1: Proposed merger of Premier and Chrysaor
2020 Proposed merger of Premier and Chrysaor October 2020 Restricted - External
Slide 2: Important notice
Important notice THIS PRESENTATION, ITS CONTENTS AND ANY INFORMATION PROVIDED OR COMMUNICATED DURING ANY PRESENTATION OR DELIVERY OF THIS PRESENTATION ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, NEW
Slide 3: Important notice
Important notice By attending or reading the presentation, or accepting delivery of or electronically accessing or reviewing this presentation or delivery of this presentation. the attendee and recipient agree to the terms contained herein and to be bound by the foregoing obligations, restrictions
Slide 4: Agenda
Contents Agenda 1. Transaction overview and key terms ………… Tony Durrant, CEO, Premier 2. Strategic rationale ……………………………..……..… Linda Cook, CEO, Harbour 3. Financing, key financial metrics…..…………..…… Richard Rose, FD, Premier 4. Overview of Combined Group ………..…….…………Phil Kirk, CEO, Chrysaor 5. Inve
Slide 5: Transaction overview and key terms
Highlights Transaction overview and key terms Proposed merger of Premier and Chrysaor Premier to acquire Chrysaor through a reverse takeover Premier’s London listing retained Key terms Premier’s stakeholders will own up to 23% and Harbour and other Chrysaor shareholders at least 77% Premier’
Slide 6: Ownership and governance
Highlights Ownership and governance Premier Oil Board of Directors intends to recommend unanimously the merger of Premier and Chrysaor Ownership structure Premier’s shareholders receive up to c.5.5 per cent of PMO Combined Group after cancellation of Premier’s debt s/holders 5.5% Harbour Energy
Slide 7: Compelling strategic logic
Highlights Compelling strategic logic Creates the UK’s largest-listed independent E&P company – Combined production of 254 kboepd (>90% UK) in 2020 1H – Significant international, growth opportunities – Upper tier of FTSE250 Creates a diversified UK business of scale with significant operated po
Slide 8: Global portfolio with leading UK position
Highlights Global portfolio with leading UK position 2P Reserves as at YE2019 2C Resources as at YE19 2020 1H Production by hydrocarbon type Norway Combined Group Vietnam 3% Indonesia 2% Oil Gas Indonesia Vietnam UK 10% 4% 1% 93% Mexico 12% Falkland 717 927 Islands 254 43% 49% kboepd 51% mmboe mmboe
Slide 9: Creating the Leading UK Listed Independent E&P Company
Highlights Creating the Leading UK Listed Independent E&P Company Comparable in scale to AkerBP and Lundin Energy Pre-Transaction Post-Transaction UK North Sea Peers(1) Norwegian Peers(2) LSE-Listed International Peers(3) Current Production 300 (kboepd) 200 100 -- Peer A Peer B PMO Combined Company
Slide 10: Financing and combined capital structure
Finance Financing and combined capital structure Simplified capital structure and strong balance sheet Leverage ratio as at 30 June 2020 Net debt/EBITDAX (ex. LCs) Significantly lower cost of debt Financial flexibility and capital allocation optionality to fund further growth 2.7 Positions t
Slide 11: Combined Group – key financial metrics
Finance Combined Group – key financial metrics Diversified asset base; reduced Diversification of production Chrysaor Assets Combined Group 2020 1H dependency on a smaller number of Premier Oil Assets Vietnam – UK Assets assets Indonesia – Chim Sao 4% UK - AELE Hub ROW Assets NSBA 5% 13% High de
Slide 12: Overview of combined UK North Sea portfolio
Summary Overview of combined UK North Sea portfolio Combined Portfolio Overview UK Map - Key Assets Chrysaor Operated Clair Field Area Operator WI Chrysaor Non-Operated Operated Chrysaor Assets PMO Operated Schiehallion Bressay Everest Chrysaor 100.0% PMO Non-Operated Lomond AELE Hub Chrysaor 100.0%
Slide 13: Creating a business with industry-leading ESG credentials
Summary Creating a business with industry-leading ESG credentials ESG(1) Highlights ESG Leadership Committed to industry ESG leadership GHG(2) Intensity Lower carbon intensity than UK average with targets in place for further improvement New Debt Facility New debt facility to include incentive for e
Slide 14: Combined group – investment highlights
Highlights Combined group – investment highlights A UK-listed E&P joining the US & European peer group of super independents UK largest oil & gas producer with material operated position Diversified and low-cost asset base with an attractive global footprint Strong balance sheet with stable and low
Slide 15: Q&A
Summary Q&A October 2020 Restricted - External P14
Slide 16: Highly experienced executive team with deep sector knowledge
Appendix Highly experienced executive team with deep sector knowledge The new company will be led by Linda Cook (currently CEO of Harbour Energy) as CEO, and Phil Kirk (current CEO of Chrysaor) as President. Both Linda Cook and Phil Kirk will also serve on the Board as Executive Directors Ms. Cook
Slide 17: J-Area overview
Appendix J-Area overview Overview Facilities and Map J-Area is located in the Central Graben Area of the UK North Sea, 240 km South East of Aberdeen, in 82 metres of water depth Offtake via Norpipe (oil) and CATS (gas) to Teesside. The cluster comprises 4 producing gas fields: Joanne, Judy, Jade
Slide 18: Greater Britannia area overview
Appendix Greater Britannia area overview Overview Facilities and Map 5 producing fields – Britannia, Brodgar, Callanish, Enochdhu and Alder (HPHT) Main field discovered in 1975, first production in 1998 Main platform at Britannia 3-Phase hosts processing facilities to enable deliveries of gas
Slide 19: Buzzard overview
Appendix Buzzard overview Overview Facilities and Map Buzzard discovered in 2001 using semi-submersible Ocean Nomad Initial 400ft of gross column encountered World-class reservoir with excellent rock quality up to 360ft of high porosity and high permeability sands Light oil produced with 32°
Slide 20: Beryl overview
Appendix Beryl overview Overview Facilities and Map The Beryl Area comprises a cluster of oil and gas fields located in the Central North Sea, in c.100m of water depth The Beryl field is developed via 2 fixed platforms: Beryl Alpha (built in 1974) and Beryl Bravo (built in 1984) Beryl Bravo Th
Slide 21: Armada overview
Appendix Armada overview Overview Facilities and Map First production in October 1997 Located in Central North Sea close to the Norwegian border Gas condensate fields average 52° API, oil fields average 35° API Single Platform to develop Phase I & II including extended reach wells plus subse
Slide 22: Everest/Lomond/Erskine overview
Appendix Everest/Lomond/Erskine overview Overview Facilities and Map Everest, Lomond and Erskine are Gas-Condensate fields – Erskine HP/HT First production in 1993 (Everest/Lomond) and 1997 (Erskine) with liquids export via FPS and gas via CATS Erskine developed via NUI and delivers production
Slide 23: Elgin/Franklin overview
Appendix Elgin/Franklin overview Overview Facilities and Map Located in the Central Graben Area, UK Central North Sea (approx. 200km East of Aberdeen) in water depths of ~92m Four producing fields: Elgin, Franklin, West Franklin and Glenelg Key dates: Discovered: Franklin: 1985; Elgin: 1991;
Slide 24: Schiehallion overview
Appendix Schiehallion overview Overview Facilities and Map The Schiehallion Field is located 130km West of the Shetland Islands in 360 to 400 metres of water depth The field was discovered in late 1993 and recently underwent a redevelopment programme (the Quad 204 redevelopment programme), invol
Slide 25: Clair overview
Appendix Clair overview Overview Facilities and Map Largest UK field, potentially producing until 2057 from 3 hubs Phase 1 first production 2005 – 184mbpd total liquids capacity; Integrated drilling rig; 28 well slots; Dual 50% separation trains Ridge first oil 2018 – 120mbpd (oil) and 220mbpd
Slide 26: East Irish Sea (EIS) overview
Appendix East Irish Sea (EIS) overview Overview Facilities and Map 3 producing fields – Calder, Millom & Dalton Offtake via North Morecambe Terminal (NMT), 100% owned by Spirit Energy Calder developed via NUI tied directly back to onshore Rivers Terminal for H2S removal prior to export to NMT
Slide 27: October 2020
October 2020 www.premier-oil.com Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR T: +44 (0)20 7730 1111 E: premier@premier-oil.com Restricted - External