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Premier Oil PLC

Premier Oil PLC Trading and Operations Update

Premier Oil PLC (LON:PMO) today provided an update on recent operational activities and guidance in respect of its half year financial results to 30 June 2019.

2019 1H highlights

·    2019 1H production averaged 84.1 kboepd, up 11 per cent on the 2018 corresponding period

·    On track to meet previously increased full year production guidance of 75-80 kboepd

·    Free cash flow generation of $180m during the period, reducing net debt to $2.15 bn

·    Significant resource upgrade at Zama (Mexico) to 670-810-970 mmboe (P90-P50-P10) (gross)

·    Tolmount, Premier’s next UK growth project, on schedule for first gas end 2020

·    Tolmount East appraisal well spud imminent, targeting an additional 220 Bcf (gross)

·    Increased Andaman Sea acreage position; significant area potential

·    Forecast 2019 opex (ex-lease costs) reduced to $12/boe; capex guidance unchanged ($340m)

·    Continue to forecast full year 2019 net debt reduction of over $300m

Tony Durrant, Chief Executive, commented

“We have delivered a strong first half. I am particularly pleased with the continued high operating efficiency from our producing portfolio which has enabled us to reduce our debt by $180 million.  This puts us in good stead to meet our debt reduction target for the full year, which remains a top priority for the Group.  In addition, we have retained significant optionality with our future developments and an extremely attractive exploration portfolio which together offer substantial upside exposure.”