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Premier Oil confirms production at top end of guidance

“We are generating significant free cash flow, which is materially deleveraging our balance sheet,” said Tony Durrant, Premier chief executive.

Premier Oil PLC - Premier Oil confirms production at top end of guidance
Production averaged 79,400 boepd in the ten months

Premier Oil PLC (LON:PMO) confirmed production at the upper end of guidance across the ten months ended 31 October, with output averaging 79,400 barrels of oil per day.

Guidance for the full year is pitched at 75,000 to 80,000 boepd.

“We are generating significant free cash flow, which is materially deleveraging our balance sheet,” said Tony Durrant, Premier chief executive.

READ: Premier Oil reveals Tolmount East well success

“At the same time, we are actively managing our portfolio and selectively progressing growth projects at the right exposure.

“We also continue to create value through the drill bit and to build material new positions in emerging exploration plays at low cost." 

Included in the trading update Premier highlighted significant industry interest in the Zama oil project, offshore Mexico, where a formal sales process is underway and the bid deadline has been extended to December to accommodate levels of interest.

It also noted that its next UK growth project, the Tolmount field development, is on schedule for first gas by the end of 2020. Additionally it highlighted the significant discovery at Tolmount East discovery which is set for a project sanction decision in the second half of next year.

Investors in Premier will also look forward to the spudding of a well in Alaska to appraise the Malguk discovery, in a joint venture partnership with 88 Energy.

Net debt reduced by US$300mln to US$2.03bn by the end of October, in line with debt reduction guidance for US$300mln.

Quick facts: Premier Oil PLC

Price: 34.91 GBX

LSE:PMO
Market: LSE
Market Cap: £321.88 m
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