Premier Oil plc: Trading and Operations Update
Wednesday 17 July 2019
Premier 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.”