PremierOil announces trading and operations update

2017 Highlights

• Full year production of 75 kboepd in line with guidance, up 5% on 2016
• First oil achieved from Catcher on 23 December on schedule and under budget
• World class Zama oil discovery, offshore Mexico
• Successful disposal programme generating more than US$200 million of cash receipts in 2017
• Significant progress on next generation of growth projects (BIGP, Tolmount, Sea Lion, Tuna)
• Opex per barrel of US$16.5/bbl
• Estimated total capex of US$305 million, below revised guidance of US$325 million
• Positive free cashflow, net debt down to US$2.7 billion as at 31 December 2017
• Comprehensive refinancing completed

Outlook

• 2018 production guidance of 80-85 kboepd, allowing for the ramp up from Catcher and adjusted for 2017 disposals
• Catcher production planned to ramp up in 1H reaching peak gross production of 60 kbopd, currently producing c20 kbopd in the ramp up phase and ahead of plan
• Tolmount development project sanction expected in 2018, will provide next phase of growth
• Zama appraisal: planning for 2018/19 appraisal programme underway
• 2018 opex per barrel expected to be US$17-18/bbl, reflecting changes in the portfolio
• 2018 development and exploration capex guidance of cUS$300 million
• Debt reduction will accelerate at current oil prices as Catcher production ramps up

Tony Durrant, Chief Executive, commented:

“First oil from Catcher and the completion of the Wytch Farm disposal completed a highly successful year for Premier which included our world class exploration success with the Zama discovery. As Catcher builds up to 60,000 bopd, 2018 will bring higher production and cashflow, continuing the debt reduction programme. Alongside this, our portfolio of future projects is being progressed for selective investment and further growth."

Read the article online at: https://www.oilfieldtechnology.com/special-reports/12012018/premieroil-announces-trading-and-operations-update/