Premier Oil PLC (LON:PMO) today provided an update on recent operational activities and guidance in respect of its half year financial results to 30 June 2019.
2019 1H highlights
· 2019 1H production averaged 84.1 kboepd, up 11 per cent on the 2018 corresponding period
· On track to meet previously increased full year production guidance of 75-80 kboepd
· Free cash flow generation of $180m during the period, reducing net debt to $2.15 bn
· Significant resource upgrade at Zama (Mexico) to 670-810-970 mmboe (P90-P50-P10) (gross)
· Tolmount, Premier’s next UK growth project, on schedule for first gas end 2020
· Tolmount East appraisal well spud imminent, targeting an additional 220 Bcf (gross)
· Increased Andaman Sea acreage position; significant area potential
· Forecast 2019 opex (ex-lease costs) reduced to $12/boe; capex guidance unchanged ($340m)
· Continue to forecast full year 2019 net debt reduction of over $300m
Tony Durrant, Chief Executive, commented
“We have delivered a strong first half. I am particularly pleased with the continued high operating efficiency from our producing portfolio which has enabled us to reduce our debt by $180 million. This puts us in good stead to meet our debt reduction target for the full year, which remains a top priority for the Group. In addition, we have retained significant optionality with our future developments and an extremely attractive exploration portfolio which together offer substantial upside exposure.”
