Premier Oil achieves record production in 2017

Premier Oil said on Thursday that it achieved its best ever year of production in 2017 as revenue and cash flows rose, although it posted a loss after tax.

In the year to the end of December 2017, production reached 75,000 barrels of oil equivalent per day compared to 71,400 the year before, with total revenue from all operations increasing to $1.1bn from $983.4m in 2016. Meanwhile, cash flow after disposals came in at $71m versus a cash outflow of $580m the year before.

In addition, the company successfully completed the refinancing of all of its debt facilities last July and reached first oil on the Catcher field in the UK North Sea in December, on schedule and under budget.

However, it did post a loss after tax of $253.8m compared to a profit of $122.6m in 2016, driven by the non-cash impairment charges recognised and the one-time fees expensed in relation to the group's refinancing, partially offset by the gain on disposal of the Wytch Farm interests.

The company said it expects to produce between 80,000 and 85,000 barrels of oil equivalent per day this year, with the Catcher field producing 60,000 by April.

Chief executive Tony Durrant said: "2017 was a successful year for Premier with the refinancing completed, our producing portfolio performing well, the Catcher field brought on-stream and the notable Zama oil discovery in Mexico.

"2018 will see further production growth, allowing us to deliver on our plans for reducing net debt to restore balance sheet strength while also progressing projects that deliver the highest financial returns."

At 1305 GMT, the shares were up 6.8% to 75.75p.