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Premier Oil announces trading and operations update
16 Jul 2017
Premier Oil has provided an update on recent operational activities and guidance in respect of its half year financials to 30 June 2017. The Group’s Half-Yearly Results will be published on Thursday 24 August 2017.
- World class oil discovery made with the Zama-1 well offshore Mexico, as announced yesterday
- Strong production ahead of guidance at 82.1 kboepd, up 34.5% on prior corresponding period; full year guidance of 75 kboepd maintained; will be reviewed on completion of the summer maintenance period
- $14.7/boe operating cost, 11% down on the prior period; full year capex guidance reduced from $350 million to $325 million
- Catcher on schedule for 2017 first oil; FPSO mechanically complete and final commissioning is well advanced prior to sailaway to the North Sea
- FEED for the Tolmount project is ongoing; discussions with an infrastructure partner to fund Premier’s share of the development are at an advanced stage
- Refinancing is expected to become effective 28 July; all shareholder and lender approvals have been received and a final Court Scheme sanction hearing is scheduled for 18 July
- Positive cash flow in 1H, in line with guidance, reducing net debt to $2.7 billion; deleveraging will accelerate as Catcher completes and proceeds are generated from our disposal programme
Tony Durrant, Chief Executive, commented:
'The very exciting exploration success in Mexico comes on top of another strong operating performance for Premier in the first half. Our producing assets are outperforming and our cash costs are below budget. Catcher will provide another step up in production and cashflow, accelerating debt reduction. Our substantial undeveloped resource base, now enhanced by the Mexican discovery, provides Premier with significant growth opportunities.'
Source: Premier Oil