Premier Oil says production above full-year guidance

LONDON (ShareCast) - (ShareCast News) - Premier Oil (LSE: PMO.L - news) said year-to-date production has averaged 57,100 barrels of oil equivalent per day (kboepd), above full-year guidance. In an update on activities, the company said summer maintenance activities had been successfully completed and that production had returned to previous levels and was expected to be ahead of full-year guidance of 55 kboepd, before any contribution from the North Sea Solan field.

Premier (NasdaqGS: PINC - news) said it still expected full-year operating expenditures of $16 per barrels of oil equivalent after making "significant" cost savings. It (Other OTC: ITGL - news) has hedged approximately 60% of its second half production at $92 a barrel (bbl) and 30% of its expected liquids production in 2016 at $68 bbl.

Premier anticipates first oil from Solan in the final quarter of 2015 in line with previous guidance. It added that good offshore productivity and 97% uptime has been achieved with the Regalia flotel.

Full year 2015 capital expenditure guidance was unchanged and Premier said it continued to forecast a significant reduction in year-on-year capex in 2016.

Premier still has significant liquidity with $1.3bn of cash and undrawn credit facilities. The company said its long term unsecured debt structure means it is not subject to borrowing base redeterminations and it has no maturities on any of its debt instruments until end 2017.

The principal $2.5bn bank facility was not due for refinancing until mid-2019, Premier added.