Premier Oil Plc (LON:PMO) today provided the following Trading and Operations Update. This is issued ahead of the Company’s Annual General Meeting which is being held today at 11.00 at 11 Cavendish Square, London.
Highlights
· Year to date production of 85.1 kboepd, up 14 per cent on prior year corresponding period
· 2019 full year production guidance increased to 75-80 kboepd
· Guidance unchanged for 2019 opex ($13/boe, excluding lease costs) and capex ($340m)
· Tolmount, Premier’s next UK growth project, progressing to schedule and on budget
· Tolmount East appraisal well to spud in July; Greater Tolmount Area 3D seismic survey completed
· Positive results from Block 7 Zama (Mexico) appraisal campaign, on track to complete in June
· Net debt reduced to $2.25bn; forecast 2019 net debt reduction at upper end of $250m to $350m guidance, at current oil prices
· Forecast year end covenant leverage ratio of less than 2.3x, at current oil prices
Tony Durrant, Premier Oil Chief Executive, commented:
“We continue to deliver ahead of plan. Production and free cash flow are ahead of forecast for 2019 and, consequently, we are reducing our debt faster than anticipated. At the same time, we are making good progress on our growth projects. We look forward to concluding the Zama appraisal campaign and to spudding Tolmount East, which has the potential to deliver a step change in value to the already high return Tolmount Main project.”
