Investors in Premier Oil Plc (LON:PMO) will be keen for an update on the Solan field, in the North Sea, where production began in mid-April at a restricted rate.
“We look for Premier to confirm the planned production rate of 20-25,000 barrels oil equivalent per day in the second half of 2016 once the second production well is complete and both wells are producing; Premier previously indicated it was aiming to produce 10mbbld/s from the first producer-injector pair,” said Thomas Martin, analyst at Numis.
Martin highlights that the planned plateau rate at Solan will account for about a third of the group’s production guidance for the year.
Premier’s other key North Sea growth project Catcher, due on line next year, and Martin said the recent wells “look good” and it is under budget.
Numis also highlights that Premier remains one of the most heavily leveraged E&P companies to long-term oil price assumptions, and as such investors will be watching for the group’s outlook for crude prices.
In the meantime, the shares are likely to remain volatile alongside oil price movements.
Scheduled announcements
Finals: C&C Group PLC (LON:CCR), Experian PLC (LON:EXPN), Vertu Motors PLC (LON:VTU)
Interims: Arrow Global Group (LON:ARW), Compass Group PLC (LON:CPG), TUI AG (LON:TUI)
Trading statements: John Wood Group PLC (LON:WG.), National Express Group PLC (LON:NEX), Premier Oil, Purplebricks Group PLC (LON:PURP), Renishaw PLC (LON:RSW)