A new Premier with stronger finances and competitiveA new Premier with stronger finances and competitiveadvantage in Asiaadvantage in Asia

A primary investment vehicle forA primary investment vehicle forPETRONAS and Amerada Hess in AsiaPETRONAS and Amerada Hess in Asia

and

Capital injection andstrategic alliance with

a

a

Tan Sri Dato’ MohdHassan Marican

President & ChiefExecutive Officer

Sam Laidlaw

President & ChiefOperating Officer

PRESENTATION TEAM

Charles Jamieson

Chief Executive Officer

Sir David John

Chairman

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TRANSACTION SUMMARY

n Premier to become a primary investment vehiclefor PETRONAS and Amerada Hess in Asia

n PETRONAS and Amerada Hess to become 25%shareholders through injection of £136m of cashvia a combination of new voting and non-votingshares

n Subscription for new equity at 25 pence per share

n Appointment of two non-executive Directors fromPETRONAS; Amerada Hess to retain two non-executive Directors

n Unanimously recommended by the Board ofPremier

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RATIONALE FOR THE TRANSACTION

n Strengthens Premier’s balance sheet in optimal manner

l enables retention of key assets

l enables financial challenges to be overcome

n Introduces PETRONAS as a key strategic partner

l the partner of choice in Asia

l builds on existing Yetagun relationship

n Reinforces Amerada Hess relationship and highlights theirlong term commitment to Premier’s Asian gas strategyand growth potential

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n 30% premium toyesterday’s closingshare price

n 27% premium toshare price on daybefore Interims andannouncement ofdiscussions

PREMIUM PAID FOR STRATEGIC STAKE

6 month share price

APR MAY JUN JUL AUG SEP10

12

14

16

18

20

22

24

26

28

Source: DATASTREAM

Subscription price

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CORPORATE GOVERNANCE AND MANAGEMENT

n Majority of Directors will be independent from majorshareholders

n A Consultative Committee will maximise opportunities forsynergies (four Premier, two PETRONAS, two AmeradaHess)

n An Operations Director will be appointed

n Two PETRONAS non-executive Directors will be appointed

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BACKGROUND

n Declared Asian gas focus

n Proven track record of finding and developingworld class gas projects in Asia at low cost

n Reserve growth of 500% over 5 years

n Cashflows are low compared to capexrequirements

n Financial capability prevents development of fullpotential of current business and new projects

n Challenge identified and several options reviewedto address it: strategic investor route preferred

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BALANCE SHEET STRENGTH AND FLEXIBILITY

Funding gap solvedFunding gap solved

300

200

100

0

122Covenant

600

400

200

0

399m

Gearing Lender Gearing

£ m

illio

n

Gea

ring

(net

deb

t/net

ass

ets)

(%)

Interims

Proforma

263m

80%

205%

105%

37%

Net Debt

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THE FIT OF PREMIER AND PETRONAS

n Builds on existing relationship

n Secures support of leading NOC in region of focusl strong relationships and influencel infrastructure and downstream skillsl transfer of skillsl strong financial standingl gas project synergies

Existing trust, dialogue and relationshipsExisting trust, dialogue and relationships

The ideal partnerThe ideal partner

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THE PETRONAS PERSPECTIVE

n Establish new vehicle to develop Asian gas business

n Allies PETRONAS with Premier’s successful Asian growthl existing projectsl proven track record of creating projectsl entrepreneurial skills

n Partnership built on trust and existing co-operation

Existing trust, dialogue and relationshipsExisting trust, dialogue and relationships

The ideal vehicleThe ideal vehicle

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THE AMERADA HESS PERSPECTIVE

n Strong reserves growth to-date

n Alliance with PETRONAS ensures momentum of growth continues

n Wider influence in the ASEAN region

n Operational overlap

An enhanced investment proposition for all shareholdersAn enhanced investment proposition for all shareholdersincluding Amerada Hess with increased competitiveincluding Amerada Hess with increased competitive

advantage in Asiaadvantage in Asia

Existing relationship cementedExisting relationship cemented

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THE ALLIANCE TODAY

nn New fundingNew funding

nn Platform for growth in AsiaPlatform for growth in Asia

nn Consultative group established to capitaliseConsultative group established to capitalise on synergies on synergies

THE ALLIANCE VISION

Creation of a new high growth investmentCreation of a new high growth investmentvehicle for Asian Gasvehicle for Asian Gasnn Exploitation of major operating synergiesExploitation of major operating synergies

nn Organic growthOrganic growth

nn Selective asset acquisitions to create theSelective asset acquisitions to create the leading independent in Asia leading independent in Asia

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ALLIANCE ASSETS IN ASIA

n Spread of assetsprovidespotential tocreate thedominantposition in Asia

Premier assetsAmerada assetsPetronas assets

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THAILAND OVERLAPS

Thailand

Myanmar

Wang Noi

Rayong

Surat Thani

Khanom

Ratchaburi

M10 M13 M12

Mergui

YANGON

PHUKET

Andaman Sea

BANGKOK

Alliance interestsGas fieldsProposed pipelineExisting pipeline

Yetagun

Gulf of Thailand

Pailin

JDA

n Thai gas market is inearly stages ofprivatisation

n Indigenous natural gaswill be used withimported gas fromMalaysia and Myanmar

n The Alliance ispositioned to capitaliseon its assets

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Premier interestsGas fields

KadanwariGhauspurQadirpur

Dadhar

Kirthar Dadu

KNS

Dumbar

Sukkur

Karachi

Lahore

Quetta

ZarghunDiscovery

Bhit Field BadhraDiscovery

Pakistan

ZamzamaDiscovery

Bolan

Islamabad

PAKISTAN INFLUENCEn Premier is in

most of theexisting andfuture gasdevelopments

n PETRONAS arealreadyestablished inPakistan

n The existing andnew gas pipelinenetworks willlead in time tothe import of gasfrom the MiddleEast

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INDONESIAN SYNERGY

n First gas export toSingapore fromPremier’s West Natunaassets underway

n Potential second gasexport to Malaysia fromWest Natuna underdiscussion

n New export of gas toSingapore from Ameradaacreage in Sumatra nowagreed

n ASEAN gas grid nowbecoming a reality

SINGAPORE

Lingga Isl.

Banka

Anambas Isls.

Singkep Isl.

Mentawai Isls

Su nd a Stra

it

St rait of Malacca

PENINSULARMALAYSIA

JAVA

SUMATRA

THAILAND South China Sea

Natuna Sea

0 100 Km

Johor Baru

Kerteh

Penang

Panjang

Palembang

Jambi

Dumai

Kuala Lumpur

Sin

gapo

r e N

at u

n a G

as T

r unk

line

Anoa

Kakap

PREMIER

DuyongSotong

Guntong

SemangkokTapis

JernehLawit

Jakarta

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SUMMARY OF THE DEAL

n Clear synergies with PETRONAS and Amerada

n Greater regional influence

n Stronger finances

n Access to infrastructure and downstream skills

n Platform for creation of the leading independent in Asia

Adding value for all shareholdersAdding value for all shareholders

A new and stronger Premier withcompetitive advantage in Asia

A primary investment vehicle for PETRONAS and Amerada Hess in Asia

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ALLIANCE VISION IN ASIA

n Major Asian gasplayer working inderegulatedmarkets

n Inter countryinfrastructureoperator

n Identifier andmarketer of newgas reserves

Premier assetsAmerada assetsPetronas assets

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ALLIANCE VISION IN ASIA

Premier assetsAmerada assetsPetronas assets