13th May 2015 06:54
LONDON (Alliance News) - Premier Oil PLC Wednesday said production fell across all of its portfolio except in Vietnam in the first quarter, but the FTSE 250 explorer and producer reiterated its full year guidance and said it will focus on reducing costs for the rest of the year.
Premier said production averaged 60,200 barrels of oil equivalent per day in the first quarter of 2015, down from 65,800 barrels per day a year earlier. The fall was due to the sale of the Scott area in the UK and some natural decline across the portfolio.
Production in the quarter fell to 13,200 barrels per day in Indonesia from 14,200 barrels, whilst UK production dropped to 16,200 barrels from 20,400 barrels a year earlier. Production from Pakistan and Mauritania also fell, to 10,900 barrels per day from 14,100 barrels. Production from Vietnam was the only area to experience a lift, rising to 20,000 barrels per day from 17,100 barrels.
Premier reiterated its full-year guidance at 55,000 barrels of oil equivalent per day, lower than current production levels due to planned maintenance to be carried out in the summer. The guidance excludes new production from the Solan field.
The company said it has made "improved progress" on the completion and commissioning of the Solan project in the UK and said first oil is still targeted for "later this year", whilst first oil from the Catcher project, also in the UK, is still scheduled for 2017.
Development capital expenditure, excluding the Solan project, is expected to total USD750 million in 2015. Funding for the Solan project is currently being discussed with Premier's partner on the project, Chrysaor, it said. Exploration expenditure for 2015 will total USD220 million, which is in line with its previous guidance.
"We have achieved a strong start to the year notwithstanding oil price volatility. Year to date we have delivered a robust production performance, progressed our development projects, achieved exploration success in the Falklands and actively managed our cost base," said Chief Executive Tony Durrant.
"Our focus remains on delivering our committed projects and managing our balance sheet while maintaining optionality in the portfolio for future growth as the oil price recovers," he added.
By Joshua Warner; [email protected]; @JoshAlliance
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