23 June 2010Indonesia - North Sumatra Block A update

June 2010 | Page 1

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.

June 2010 | Page 2

North Sumatra Block A (NSBA)

• Established hydrocarbon province

• Existing undeveloped discoveries

• Under-explored

• Rehabilitation opportunities

16.66%Japex41.67%Premier41.67% (op.)Medco

June 2010 | Page 3

Summary

PSC Extension• Significant progress made in securing Aceh local government approval, expect

Central Government approval in Q3

Gas Development – Alur Siwah / Alur Rambong / Julu Rayeu• Facilities – EPCI documents prepared for tender, award expected Q1 2011• Drilling – rig secured, detailed well planning underway• Gas Transportation – pursuing Right of Way sharing with ExxonMobil• The Operator (Medco) plans First Gas at the end of 2012. Alur Rambong is planned

to have a full year of production in 2013 with Alur Siwah following 6 months into the year

Contingent Resources• Work-overs on old oil fields successfully executed in 2009

• Currently evaluating results and forward programme• Internal evaluation (screening studies) undertaken for Kuala Langsa

• Exploratory discussions with Operator and 3rd parties

Exploration Programme• Matang-1 proposed for 2011• 2nd Exploration well likely in 2012

June 2010 | Page 4

PSC extension – MOA with Aceh

• Under the Autonomy agreement between Central Government and Aceh, the Regional Government needs to approve any PSC award or extension in Aceh

• MOA between Aceh Governor and Medco – signed 5th April• 1% of total revenue from production each year to be used for Community

Development – as per law 2006/11• Local Government Company to participate in 3rd Party pipeline project• Aceh to support Extension of the PSC to the JV, with the above terms to be

incorporated in to the PSC

• Aceh Parliament (DPR) verbally endorsed terms of the MOA on 17th May, as announced by Aceh DPR Head, Pak Hasbi Abdullah. Waiting on formal approval

• With formal approval from Aceh, Medco expects Central Government approval to be forthcoming in Q3

June 2010 | Page 5

Gas development – gas sales

• Pupuk Iskandar Muda (PIM) – Fertilizer production• 2 x Fertilizer plants each requiring c 55 BBtu/d of gas• GSA signed in December 2007• 223 Tbtu reserves at 110 BBtu/d (PIM obliged to take excess TCQ)• $6.50 mmbtu, profit share when Urea above $425/tonne

• PLN – Electricity• New Power generation plant to be built close to Alur Rambong field• GSA signed in April 2008• 85 Tbtu at 15 BBtu/d• $5.30 mmbtu, 3% annual escalation• Initial delivery expected to be at 5 bbtu/d, ramping up to 15 bbtu/d

June 2010 | Page 6

Gas development – overview

Field Development

• Alur Siwah 10-12 wells

• Alur Rambong 2 wells

• Julu Rayeu 6 wells (fuel gas)

• Central Process Facility (CPF) with condensate separation, plus H2S and CO2 removal

• 140 MMscf/d export to:• PIM – 110 bbtu/d• PLN – 5-15 bbtu/d• 2000-3000 bcpd

• Gas Export Pipeline to SLS-A and Power plant

• Gas transportation cost from SLS-A to PIM, paid by PIM

• Separate condensate line from CPP to PT Arun

June 2010 | Page 7

Gas development – status

Land Acquisition• Good progress made - acquisition survey complete, land largely in plantation areas simplifying

purchase process• Options for CPP location.• Permits requested – Expect to be granted when Aceh formally endorses PSC

Facilities• Tender documents prepared for facilities EPCI • Two Development options carried in the tender:

1. Alur Rambong FG at 55bbtu/d followed by Alur Siwah at 110bbu/d after 6 months2. Alur Rambong FG at 55bbtu/d followed by Alur Siwah at 55 bbtu/d after 6 months, then

ramping up to 110 bbtu/d after a further 18 months(Essentially option 2 defers installation of one of the acid gas removal plants. Decision to be made once commercial bids received).

Drilling• Detailed well planning underway for first phase of development drilling• Medco secured PT Antareja Resources Rig-8 • Long Lead drilling tangibles contacts ready to award• Preparing tender documents for drilling services – to be tendered in Q3

June 2010 | Page 8

Contingent resources – oil fields

• Work-over of 6 wells (5 producers & 1 water injector) successfully completed

• Wire-line logs run in two wells – movable oil interpreted, Tu-33 tested at 25 bopd

• Demonstrated:• Wells can be worked over and produced• Strong and positive relationship with the local

community, extremely important as a precursor to the gas development

• Going Forward:• Focus continues to be on gas project but meanwhile

the Operator is evaluating results to-date and formulating further work programmes – including gathering additional data in current wells, considering additional work-overs and some infill drilling

June 2010 | Page 9

Contingent resource – Kuala Langsa gas field

• Giant Gas Field Discovered in 1992

• c.10 Tcf of Gas in Place – the one well drilled to date recovered around 80% CO2 in the gas test.

• Screening studies undertaken to develop and sequestrate CO2

• Exploratory development discussions with operator and approaches from third parties

Kuala Langsa -1TD 3756 m

E W S N

Peutu Carbonateover basement

Lwr. Baong Interval

Bend in Line

Top Peutu Fm.Depth

C.I.=50 metres

2500m

GWC -3511m

June 2010 | Page 10

Exploration

• Under-explored area – last exploration well in 1978

• Deep Gas Potential – backfill PIM Gas Sale from Alur Siwah

• Matang-1 - proposed for 2011

• Potential 2012 wells • Peudawa Rayeu• Terumbu Peutouw• Kuala Langsa

• All the above appraise existing discoveries

• Operator now working on shallower oil-prone intervals to develop further exploration opportunities

June 2010 | Page 11

Exploration – Matang prospect

Matang-1 - Proposed for 2011• Reservoir Peutu Carbonates (Alur Siwah,

Arun) – target reefs• Gas proven by Pergidatit-1• Main risk is reservoir quality• Area 15,731 acres• Depth to crest 2370 mss• Column height 145 m• Reserves range 113 – 240 – 440 bcf• Operators number 400 – 715 – 1330 bcf• Development Concept is for minimal surface

facilities tied back to Alur Siwah for processing and export to PIM

818

Matang

818

W E

2.5 Km

2.5 Km

NSBA PSC: Top N4 Carbonate Depth

Blue areas interpreted as reef build-ups

June 2010 | Page 12

North Sumatra Block A (NSBA)

• Established hydrocarbon province

• Existing undeveloped discoveries

• Under-explored

• Rehabilitation opportunities

16.66%Japex41.67%Premier41.67% (op.)Medco

June 2010 | Page 13www.premier-oil.com June 2010