Tag Archives: Solan project

Premier Oil Trading and Operational Update

Premier today provides a Trading and Operations Update for the period 1 January to 31 October 2016.

  • Comprehensive term sheet for refinancing in final stages of negotiation with the Group’s banks and private bondholders
  • Production averaged 69 kboepd year-to-date; current run rate of >80 kboepd, on track to meet previously increased full year guidance of 68-73 kboepd
  • Outperformance from the Huntington, Chim Sáo and Natuna Sea Block A fields; production currently constrained at the Solan field
  • Catcher on schedule for first oil in 2017 with total capex now estimated at $1.7 billion, 24% lower than at sanction; FPSO outfitting continues apace and well delivery remains ahead of prognosis
  • Exclusivity period with preferred bidder for the Pakistan business has ended; discussions continue with the previously preferred bidder and new third parties; Pakistan assets substantially outperforming in 2016, value to be retained by Premier
  • Forecast 2016 operating costs of $15.9/bbl and gross G&A of $196 million, both significantly below budget
  • Forecast 2016 exploration and development capex expected to be below previous guidance of $730 million; 2017 capex anticipated to be materially lower at $300 million
  • Net debt of $2.8 billion at 31 October, marginally down from Q3, with cash and undrawn facilities on hand of c. $600 million
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