14th Nov 2019 08:56
(Alliance News) - Premier Oil PLC on Thursday posted a rise in year-to-date production and forecast annual production to be at the upper end of guidance.
Shares in the oil & gas firm were up 3.3% at 89.57 pence each in London.
The company, which has interests in the UK, Asia, Africa, and Mexico, said production averaged 79,400 barrels of oil equivalent per day for the 10 months to October end, up from 77,700 barrels in the comparative year ago period, underpinned by continued high operating efficiency of 94%.
October production averaged 78,400 barrels per day, Premier added.
Premier expects 2019 production to be at the upper end of its 75,000 barrel to 80,000 barrel of oil equivalent guidance range.
The company's UK assets achieved a 27% jump in average production to 55,300 barrels per day for the 10-month period, driven by a full contribution from the Catcher Area. Catcher production averaged 34,500 barrels per day, net 50% to Premier, and achieved 100% operating efficiency.
In Vietnam, Premier's operated Chim Sao field production averaged 11,700 barrels per day, net 53% to Premier Oil, ahead of budget with natural declines from existing wells mitigated by four well intervention campaigns during the period.
The London-headquartered company's Indonesian gas fields delivered 11,000 barrels per day for the 10 months, net 29% to Premier Oil.
Premier continues to forecast first gas from the Bison, Iguana, and Gajah Puteri fields in Indonesia by 2019-end.
Premier said it is in the final stages of concluding a rig contract to drill the Berimbau/Maraca prospects on the operated Block 717 in the Ceara basin in Brazil. In Alaska, the Nordic-3 rig has been contracted by the company to appraise the Icewine Area A Malguk-1 discovery.
In Mexico, Premier expects to receive the Block 30 final processed 3D seismic dataset in the second quarter of 2020. The company has separately received fast track data from the 3D seismic acquisition programme across its Andaman Sea blocks in Indonesia.
Premier has hedged 41% of its fourth-quarter 2019 oil entitlement volumes at USD70 per barrel and 29% of its 2020 first half oil entitlement volumes at USD64 per barrel. The company has also hedged a significant proportion of its remaining 2019 and 2020 Indonesian and UK gas volumes.
The company generated USD300 million of free cash flow over the 10-month period, reducing net debt to USD2.03 billion at October-end from USD2.33 billion at 2018-end and underpinning 2019 net debt reduction guidance in excess of USD300 million.
By Tapan Panchal; [email protected]
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