Premier Announce Interim Management Statement

Premier Announce Interim Management Statement

Premier today provides its Interim Management Statement for the period 1 January to 31 October 2014.
Highlights
* Year to date production averaged 64.0 kboepd, up 12.6% on prior corresponding period
* Good progress with development projects: Dua on-stream; first gas from Naga; Solan commissioning underway; Catcher FPSO construction to commence shortly
* Following a project review, Sea Lion will now progress initially as a smaller development in the north east of the field with an estimated capex of less than $2 billion
* Upcoming material exploration wells in 2015 include Badada (Kenya), Myrhauk (Norway) and Zebedee and Isobel Deep (Falkland Islands)
* Cash flows protected by forward hedges: c. 43% of liquids sold at an average of $101.5/bbl for 15 months out to year-end 2015
* Strong funding position retained, with cash and undrawn facilities of $2.2 billion
Tony Durrant, Chief Executive, commented:
“Despite external market volatility, 2014 has seen strong operational performance from Premier as we continue to deliver on the key targets communicated to investors earlier in the year. Looking forward, new projects will be sanctioned if they are robust at our long term oil price which is currently $85/bbl. This includes a phased, lower capex solution for Sea Lion. In 2015, net cash flows will benefit from lower development capital expenditure and a programme of cost reductions.”
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Source: Premier Oil plc
Oil and Gas Press

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