18th May 2007 11:49
Premier Oil PLC18 May 2007 PREMIER OIL PLC ("Premier" or "the Company") AGM Statement The following statement was made by Sir David John, Chairman of Premier Oil plc,at today's Annual General Meeting of the Company; "In 2006, the Company made progress on all fronts. Production remained strong,reserves and resources were increased by 25%, and significant progress was madeon development projects including gas sales agreements. The company achievednotable exploration success in Vietnam with the Dua and Blackbird discoveries,as well as three new discoveries in Indonesia at less than the plannedexploration spend of $50 million. We are particularly excited at the futureprospects for Vietnam where we expect to be very active on both exploration anddevelopment projects later this year and into 2008. The Company has, in the last twelve months or so, made three mid-sizedacquisitions in core business areas, including the purchase of an interest inthe highly prospective North Sumatra Block in Indonesia. Earlier this morningwe announced the successful completion of the acquisition of an increased equitystake in the UK Scott field which will increase Premier's current production by5,000 BOEPD. Together, we believe that these additions to our portfolio willadd some 60 million barrels of oil equivalent at a cost of less than US$2 perbarrel. The company has begun 2007 with discoveries in Pakistan and Indonesia.Disappointments in the UK and Guinea Bissau remind us of the risky nature of theexploration business. Our 2007 exploration campaign continues with theMasimpur-3 well in India which is drilling ahead, and the Anne well in Pakistanexpected to spud in June. Our good performance in operations and stronger oil and gas prices produced anexcellent financial result for 2006 with profits up 75%, cash flow up 102% and acontinuing strong balance sheet. The company has successfully managed itsoperating costs which remain stable year on year despite a rising costenvironment. Looking forward, the team is aiming to deliver value though a growth-focused,independent E&P business. Our focus on development projects will deliversignificant production growth. The company is on target to surpass its 50,000boepd target in 2010. We will continue to focus on high-impact exploration opportunities which havethe potential to add at least one pound to the company's share price on success. We will continue to seek acquisitions which are complementary to our existingassets and knowledge base. In an extremely active asset market, areas that weknow well will give us the best opportunity to add value for shareholders. The Board announced on 7th December 2006 that it had terminated all discussionsregarding a possible offer for the company following the earlier receipt of apreliminary and conditional proposal. The Board remains extremely confidentthat the pursuit of the Company's strategy of high-impact exploration and itsgrowing portfolio of development projects continue to be of long-term benefit toshareholders." 18 May 2007ENQUIRIES Premier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PRJames Henderson Tel: 020 7743 6673Gavin Davis Tel: 020 7743 6677 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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