Premier Oil: Trading and Operations Update

Premier has provided a Trading and Operations Update for the period 1 January to 31 October 2017.

Highlights

• Production averaged 76.6 kboepd year-to-date with planned 3Q maintenance completed; on track to meet previously increased full year guidance of 75-80 kboepd
• Catcher on schedule for first oil during December; FPSO swivel and buoy successfully mated with the final rotation test imminent and final topsides system commissioning proceeding well
• Heads of Terms signed for FPSO lease extension on Huntington field, extending the life of the field
• Government agreement signed for the sale of Tuna field gas in Indonesia to Vietnam
• Zama appraisal: pre-unitisation discussions with Pemex underway; likely 4 well appraisal programme commencing late 2018
• Disposal programme ongoing including sale of Wytch Farm field for US$200 million; shareholder circular to be issued imminently
• Forecast 2017 operating costs of about US$16/bbl and gross G&A of US$150 million, below budget and in line with previous guidance
• Forecast 2017 development, exploration and abandonment expenditure expected to be US$300-310 million, down from previous guidance of US$325 million
• Net debt of US$2.8 billion at the 30^th September; debt reduction forecast at year end, including effects of ongoing planned disposals

Tony Durrant, Chief Executive, commented:  “Through strong production, cost control and disposal activity, cash generation is ahead of plan. The excellent progress on the Catcher project, combined with the recovering oil price, will accelerate debt reduction through 2018. The agreement to export Tuna gas to Vietnam, signed last week, adds to Premier’s significant backlog of future growth opportunities.”

Future announcements

The next Premier Trading and Operations Update will be provided on the 11^th January 2018. Premier’s Full Year Results for 2017 will be announced on the 8^th March 2018.