Premier Oil PLC Operational update (8835Z)
September 23 2015 - 2:01AM
UK Regulatory
TIDMPMO
RNS Number : 8835Z
Premier Oil PLC
23 September 2015
PREMIER OIL PLC
("Premier" or "the Company")
Operational update
23 September 2015
Premier today provides an update on its recent operational
activities.
Production year-to-date has averaged 57.1 kboepd. Summer
maintenance activities have been successfully completed and
production has returned to previous levels. As a result, production
remains ahead of full year guidance of 55 kboepd, before any
contribution from Solan.
Premier has hedged approximately 60 per cent of its 2015 2H
liquids production at $92/bbl and 30 per cent of its expected
liquids production in 2016 at $68/bbl. Premier will continue to
seek to add to this position as market conditions allow. As a
result of significant cost savings, Premier continues to expect
full year opex of c. $16/boe.
Premier anticipates first oil from Solan in Q4 2015, as
previously guided. Good offshore productivity and 97 per cent
uptime has been achieved with the Regalia flotel. A number of the
critical path platform systems have now been successfully
commissioned including the firewater deluge system and other safety
related systems such as the gas detection system. 34,000 hours of
planned commissioning activity remains to first oil (down from
56,000 hours at the time of the company's Half-Yearly Results in
August) and these are being liquidated at a rate of 600-800 hours
per day. Completion of the commissioning of the subsea
infrastructure is also progressing well.
2015 full year capex guidance is unchanged and Premier continues
to forecast a significant reduction in year-on-year capex in
2016.
Premier continues to enjoy significant liquidity with $1.3
billion of cash and undrawn credit facilities. The company's long
term unsecured debt structure means that Premier is not subject to
borrowing base redeterminations and the company has no maturities
on any of its debt instruments until end 2017. Its principal $2.5
billion bank facility is not due for refinancing until mid-2019. As
announced at the Half-Yearly results, Premier has increased its
financial flexibility with the successful renegotiation of its
covenants out to mid-2017.
Enquiries
Premier Oil plc Tel: 020 7730 1111
Tony Durrant, CEO
Richard Rose, Finance
Director
Bell Pottinger Tel: 0203 772 2500
Gavin Davis
Henry Lerwill
This information is provided by RNS
The company news service from the London Stock Exchange
END
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