6th May 2005 11:45
Premier Oil PLC06 May 2005 Premier Oil AGM Statement Premier is an independent exploration and production company with gas and oilinterests principally in the UK, Pakistan, Indonesia and West Africa. Attoday's Annual General Meeting, Sir David John, Chairman, made the followingcomments: "We continued to make good progress on all fronts in 2004. Net profits were up57% reflecting higher oil prices and lower interest charges following 2003'srestructuring. Operating cashflow was more than sufficient to fund the entirecapital programme resulting in an increase in net cash balances of $4.9 millionto just under $20 million. Production in 2004 was maintained at similar levels to 2003 on a comparativebasis with strong gas demand in Indonesia and Pakistan compensating for naturaldecline in UK fields. Our next stage of development on the West Natuna gasproject is on track, as is the Woodside operated Chinguetti development inMauritania due to come on stream early in 2006. 11 exploration and appraisalwells were drilled in 2004, 6 of which were successful, yielding a 50 per centsuccess rate for each of the two years since our restructuring. In December 2004, the Board authorised a share buy-back programme of up to £10million. A successful programme is being carried out. Further share purchaseswill be considered in the appropriate market conditions. The programme for 2005 is for up to 16 exploration and appraisal wells includingdrilling in West Africa, South and South East Asia. Up to five wells are underconsideration in Mauritania, with other West African wells offshore Gabon, Irisand Themis, and offshore Guinea Bissau on the Esperanca block. Drilling of theLakkhi-1 well in North East India is underway, and later in the year we expectto commence the drilling of up to two wells offshore Vietnam and at least one inblock A offshore Indonesia. So far this year we have had two successes from two wells. The first, a flowtest on an appraisal well on the Tiof field in Mauritania and the second was theAl Amir-1 exploration well in Egypt. We plan to follow this up with anappraisal well in the third quarter of this year. A major focus for the non-executive directors in 2003 and 2004 has been theappointment of a successor to Chief Executive, Charles Jamieson. Following athorough selection process looking at both external and internal candidates, Iam delighted that the decision was taken to promote Simon Lockett, who has beenwith Premier for ten years, fulfilling a number of roles, most recently asOperations Director. Simon took over as Chief Executive on 24 March 2005.Charles remains an executive director and will retire in June after 25 yearswith the company, the last 13 years as Chief Executive. We also part company with our Finance Director, John van der Welle who isleaving to pursue new challenges. John has played a key role in transformingthe Group's finances and profitability over the last six years. We arefortunate to have attracted a high calibre replacement for John in Tony Durrant. Tony is a chartered accountant and will join Premier's Board from LehmanBrothers where he is a Managing Director and Head of the European NaturalResources Group. During the course of nineteen years with Lehman Brothers, hehas advised numerous companies within the energy sector, and managed a largenumber of financings and energy-related transactions. He will be a key memberof the team now taking the Company forward. At the end of 2004, the Board carried out a review of the Company's strategy.The existing policy of growing net asset value per share and hence share price,through exploration success and commercial deal-making, was endorsed withrenewed emphasis on the commercial front. An ungeared balance sheet and strongcash flow from production give us an excellent foundation for investments togrow the business in our focus areas." 6 May 2005 ENQUIRIES: Premier Oil 020 7730 1111Simon Lockett College Hill 020 7457 2020Tony FriendBen Brewerton This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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