Home » News » FTSE 250 » Premier Oil Plc Strong operational performance reduces debt levels ahead of forecast
Premier Oil PLC

Premier Oil Plc Strong operational performance reduces debt levels ahead of forecast

Premier Oil Plc (LON:PMO), today provided the following Trading and Operations Update ahead of its 2018 Full Year Results, which will be announced on Thursday 7 March 2019.

Highlights

· Estimated year-end net debt of US$2.3 billion, below previous guidance of US$2.4 billion and a reduction of US$390 million on 2017

· 2018 full year production of 80.5 kboepd, up 7 per cent on 2017 and a record year for the Group; production averaged 92 kboepd, above forecast, in November and December

· Catcher FPSO producing at increased oil rates of 66 kbopd (gross)

· Tolmount Main gas project sanctioned, platform construction commenced in December; high value Tolmount East appraisal well scheduled to spud mid-2019

· Appraisal of giant Zama discovery (Mexico) underway; results of first appraisal well (Zama-2) expected shortly

· 3D seismic acquisition commenced in the Andaman Sea (Indonesia); 3D seismic across Block 30 (Mexico) and Greater Tolmount Area (UK) planned for 2019 1H

· Estimated 2018 total capex of US$355 million, below previously reduced guidance of US$365 million; 2018 opex estimated at US$16.9/boe, below guidance

Tony Durrant, Premier Oil Chief Executive, commented:

“Our strong operational performance and disciplined expenditure have enabled us to reduce our debt levels ahead of forecast. At the same time, we have continued to build our portfolio for the future, sanctioning our high value Tolmount Main gas project and capturing highly prospective new acreage in Mexico and Indonesia. Looking to the year ahead, we have a strong production base which is well hedged and our priority remains to further reduce our debt levels while progressing our future growth projects to final investment decisions.”