Premier Holds Tolmount Funding Talks
UK independent Premier Oil provided a trading update July 13, buoyed by 1H production ahead of guidance plus its announcement this week of a ‘world class’ Mexico oil discovery. Meanwhile the company’s complex refinancing is “expected to become effective July 28” following a July 18 court hearing.
Premier said 1H 2017 net production of 82,000 barrels of oil equivalent/day was “ahead of guidance” and up 34.5% year-on-year; it maintained its full year 2017 guidance of 75,000 boe/d.
Its North Sea Catcher oil project remains on schedule for 2017 first oil, with the floating production ship mechanically complete, ready for final commissioning prior to sail-away from its Singapore yard to the UK field.
Production from assets acquired 2016 from E.ON, principally the Huntingdon gasfield, “continues to exceed targets averaging 19,400 boe/d in 1H 2017.”
Also in the UK North Sea, front-end engineering (Feed) for its 1 trillion ft³ Tolmount gas project (also formerly E.ON) is “ongoing, with discussions with an infrastructure partner to fund Premier's share of the development at an advanced stage” with “development sanction planned for 1H 2018.”
Premier had previously talked of farming out part of its 50% Tolmount stake, but instead now says it is “engaged with an infrastructure partner regarding the possible funding of the development.”
It added that current disposal processes include the sale of its 30% in the UK offshore gas system Esmond Transportation System (ETS), plus its interest in the Arran field in the central North Sea, both expected to conclude in 2H 2017.
There have been a number of similar midstream divestments. Three months ago, Premier announced the sale of its Pakistan gas E&P business to local Al-Haj Group for $65.6mn and said it has already received a non-refundable $20mn of that. Premier said last month it will acquire an extra 3.71% of the UK onshore Wytch Farm oilfield for some £11.7mn ($15.1mn), taking its stake to 33.8%, which is expected to complete by end-August 2017.
Mark Smedley