Premier Oil Provides Trading and Operations Update
Thursday 12 July 2018
Premier provides an update on recent operational activities and guidance in respect of its half year financials to 30 June 2018.
Highlights
- Production averaged 76.1 kboepd during 1H with recent run rates over 90 kboepd; full year guidance of 80-85 kboepd is unchanged
- Catcher plateau production rates of 60 kbopd (gross) consistently achieved following commencement of gas export and water injectivity in May
- Tolmount project Board approved; formal partner approval expected Q3
- Zama discovery: pre-unitisation agreement notice submitted; appraisal programme to commence Q4
- New, attractive exploration licences offshore Mexico and Indonesia signed; seismic work to start later this year
- Sale of ETS (UK) and Kakap (Indonesia) completed; Babbage Area (UK) and Pakistan transactions awaiting government approvals
- Forecast 2018 operating costs of $17-$18/boe; forecast development, exploration and abandonment expenditure of $380 million, in line with previous guidance
- Net debt reduced to $2.65 billion over period; full year net debt reduction estimated at between $300 million and $400 million at current oil prices with covenant leverage ratio forecast to fall to 2.5x EBITDA by end Q1 2019