Premier Oil Announce Trading and Operations Update

Premier provided the following trading update for the period 1 January to 30 April 2016. This update was issued in advance of the Company’s Annual General Meeting which held at 11 Cavendish Square, London.

  1. Strong production to 30 April of 57.3 kboepd; on track to deliver at or above upper end of 2016 guidance of 65-70 kboepd for the full year
  1. Completed acquisition of E.ON’s UK North Sea assets on 28 April
  1. Oil production from the Solan field commenced on 12 April; rates of over 14 kbopd achieved from the first producer well; second well due on-stream by mid-year
  1. The Catcher project remains on schedule and below budget; pre-first oil capex forecast is 15 per cent lower due to significant cost savings
  1. Operating costs and gross G&A tracking 10-20 per cent below 2016 budget, year-to-date
  1. Significant liquidity with cash and undrawn bank facilities of c. $750 million; discussions ongoing with lenders to secure financial covenant waiver if required

Tony Durrant, Chief Executive, commented:

“Strong production performance from our existing assets, together with the contribution from the E.ON assets and the Solan field means that we now expect production for the year to be better than we originally anticipated. This, along with continued cost savings, positions us well to maximise our current cash flow as we remain focused on managing our balance sheet in the current oil price environment.”

Source: Premier Oil
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