Premier Oil sees FY production at top end of guidance

Premier Oil said it expected full year production to be at the upper end of expectations as summer maintenance programmes were completed successfully and production returned to previous levels.

The company now said it expected production to be at the top end of a 75,000 – 80,000 barrel (boepd) guidance range.

Production for the year to October 31 averaged 79.4k boepd for the period, underpinned by continued group operating efficiency of 94%, Premier said on Thursday.

Forecast 2019 operating expenditure excluding leasing costs remained unchanged at $12 a barrel while capital expenditure guidance was cut to between $300m - $320m from $340m.

Net debt was reduced by $300m to $2.03bn underpinning full year net debt reduction guidance in excess of $300m.

Chief executive Tony Durrant said the company was generating “significant free cash flow, which is materially deleveraging our balance sheet”.

“At the same time, we are actively managing our portfolio and selectively progressing growth projects at the right exposure. We also continue to create value through the drill bit and to build material new positions in emerging exploration plays at low cost,” he said.