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Premier Oil says yearly production could surpass guidance

Staff Writer |
Premier Oil said that it continues to expect full-year output to be at or above the upper end of its guidance of 65,000 to 70,000 barrels of oil per day on the back of strong production from its existing and new North Sea fields.

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The company said it was producing 61,000 barrels of oil equivalent per day, with recent record rates above 80 kboepd. In addition, Premier Oil said the Solan field, which is currently at 11,000 barrels per day, is ramping up to 14 kbopd.

Premier Oil also said it has successfully completed the integration of E.ON UK assets and the portfolio is performing strongly.

The group said operating expenditure in the first half was around $16 per barrel of oil equivalent, which is 14% below budget. Premier said it has taken advantage of the recent weakness in the sterling dollar exchange rate following the UK's vote to leave the European Union to lock in £110m of forward expenditure in the second half of the year at an average rate of 1.31.

"Premier expects reductions in its operating costs and capital expenditure if the current sterling dollar exchange rate weakness persists with over half of the company's remaining 2016 capex and opex denominated in sterling," it said.

CEO Tony Durrant said: "Over the period, we have delivered a robust production performance, achieved first oil from Solan, completed the E.ON acquisition and reached key milestones on the Catcher project.

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