Premier Oil cuts more debt than forecast

Premier Oil said on Thursday said had cut debt to $2.3bn at the end of 2018, below previous forecasts of $2.4bn, a $390m reduction on 2017.

Full-year production of 80,500 barrels of oil equivalent per day (boepd) was above guidance and 7% higher than 2017.

Premier said it saw output at around 75,000 boepd and estimated revenue for last year at $1.4bn, up from $1.1bn, on the back of higher production and prices.

Its full-year production was 7% higher than in 2017 at 80,500 boepd, with November and December 2018 production averaging more than expected at 92,000 boepd.

Premier said it hedged 36% of its forecast oil entitlement production to end 2019 at an average of $70/bbl.

“On a full year basis, Premier expects to generate positive free cash flow at oil prices above $45 (a barrel) during 2019,” the company said.

"Looking to the year ahead, we have a strong production base which is well hedged and our priority remains to further reduce our debt levels while progressing our future growth projects to final investment decisions," Durrant added.

On a full-year basis, Premier expected to generate positive free cash flow at oil prices above US$45/bbl during 2019 with the weaker sterling exchange rate and strong UK gas prices were also offsetting recent oil price volatility.