Premier Oil points to strong production figures and successful cost cutting in its latest trading statement for the period form 1 January to 31 October 2017.
The company shows that production averaged 76.6 kboepd year-to-date with planned 3Q maintenance completed. These figures are on track to meet previously increased full year guidance of 75-80 kboepd.
Premier confirmed that its disposal programme was ongoing including sale of Wytch Farm field for $200m; with a shareholder circular to be issued imminently.
Forecasted 2017 operating costs of c$16/bbl and gross G&A of $150m, were below budget and in line with previous guidance
Forecasted 2017 development, exploration and abandonment expenditure expected to be $300-310m, down from previous guidance of $325m.
As of end of September 2017, net debt stood at $2.8bn; the debt reduction forecast at year end, including effects of ongoing planned disposals
Commenting on the latest update Tony Durrant, Chief Executive, said:commented:
"Through strong production, cost control and disposal activity, cash generation is ahead of plan. The excellent progress on the Catcher project, combined with the recovering oil price, will accelerate debt reduction through 2018.
“The agreement to export Tuna gas to Vietnam, signed last week, adds to Premier's significant backlog of future growth opportunities."
The company’s share price was down slightly 1.5% in early trading to 68.75.