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Premier Oil boasts significant cash flow as output continues to rise

Premier oil forecasts a production rate of 80,000 boepd for the full year
oil and gas operations
The ramp up continues

Premier Oil PLC (LON:PMO) told investors that it has produced 78,400 barrels oil equivalent per day in the year to date, compared to 76,200 boepd in the first six months of the year.

It forecasts a production rate of 80,000 boepd for the full year.

The producer highlighted that the 50% owned Catcher area has frequently achieved record rates of over 70,000 boepd gross.

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"Premier is now generating significant free cash flow,” said Tony Durrant, Premier chief executive.

“Our portfolio is currently producing 85-90 kboepd, our low-cost base has been maintained and our capital spend is tightly controlled.

“We are on track to deliver material debt reduction in 2018 through 2019, substantially improving our balance sheet. 

“We look forward to the appraisal of our world-class Zama discovery, starting later this month, and the commencement of construction activities for our high-value Tolmount gas project in December."

Premier added that operating costs are expected to be unchanged, at US$17 to U$18 per barrel, and, its forecast expenditure for development, exploration and abandonment is seen at US$365mln, down from US$380mln.

At October 31, net debt reduced to US$2.52bn and the year-end net debt forecast is set at US$2.4bn.

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