Premier Oil reports record production

Premier Oil reported a record production of 71.4 thousand barrels of oil equivalent per day (kboepd), which was 24% higher than 2015 and in line with previously upgraded guidance.

The company said opex per barrel was $15.7/bbl and estimated capex of $690 million. This was below guidance of $730m.

The firm said net debt was $2.8bn as of 31 December 2016, which was lower in the fourth as anticipated. Cash and undrawn facilities stood at $600m.

OUTLOOK

Premier Oil reported 2017 production guidance of 75 kboepd, before any contribution from Catcher and adjusted for lower Solan profile.

Catcher was on schedule for start-up later this year with total capex forecast at $1.6bn, 29% lower than sanctioned estimate.

The company said approval of Tolmount development concept is expected shortly to provide next phase of growth.

It also announced an increased equity interest to 25% in large Zama prospect, Mexico, which is expected to spud early Q2.

Premier Oil reported 2017 capex guidance of $350m, including abandonment spend.

It said net debt will continue to reduce at current forward curve.

REFINANCING

All substantial commercial terms were agreed with the Coordinating Committee of the RCF Group and representatives of other private lenders. The long form term sheet was at an advanced stage.

At 11:47am: (LON:PMO) Premier Oil PLC share price was +1.13p at 92.63p