Premier Oil announces trading and operations update
Premier Oil has provided a Trading and Operations Update for the ten months to 31 October 2020.
Highlights
- Proposed merger with Chrysaor announced, creating the largest London listed independent oil and gas company with a strong balance sheet and significant international growth opportunities
Combined production to the end of October of 237.5 kboepd
Creditor support received. Transaction completion expected by end Q1 2021
- Premier’s production averaged 62.5 kboepd for the ten month period. Full year production guidance is revised to 61-64 kboepd to take into account recent constraints at Catcher
- Solan P3 brought on-stream in September as planned, production capacity of more than ten kbopd from the field in the near term
- Tolmount: platform installed and drilling of the four development wells commenced. First gas forecast for Q2 2021, adding 20-25 kboepd (net) once at plateau
- Significant growth optionality maintained:
Zama (Mexico) unitisation and development plan negotiations progressing with Pemex
Tuna (Indonesia) farm-out agreement signed with Zarubezhneft in September. Fully-carried two well appraisal programme planned for 2021
Highly encouraging results from new 3D data sets in Mexico and Indonesia
- Forecast 2020 opex (ex-lease costs) unchanged at US$12/boe and full year capex guidance now US$325 million, reflecting full year savings and deferrals of about US$255 million
- Net debt of US$2.05 billion, as at end of October. Financial covenants waived through to completion of the Transaction
Tony Durrant, Chief Executive, commented: ‘The merger with Chrysaor, which will create a Combined Group with diversity, scale and balance sheet strength, is progressing to plan.
‘We now have creditor approval and we expect to publish the prospectus in December, with completion on track for the first quarter of 2021.’
Source: Energy-pedia