UK Premier Oil Back in the Black

UK independent Premier saw higher production, positive free cash flow and a return to profitability in 2018, it announced March 7.  It made a post-tax profit of $133.4mn, after the loss in 2017  of $253.8mn. It received $73.4mn in cash from asset sales.

CEO Tony Durrant said the company was ahead of plans to restore balance sheet strength and that growth projects such as the UK Tolmount, Mexican Zama and Falkland Islands' Sea Lion fields, together with promising exploration in Mexico and Indonesia, were moving ahead in a disciplined financial framework. It plans to submit a loan application for funding Sea Lion next quarter.

Output was a record 80,500 barrels of oil equivalent/day, up from 75,000 last year as UK Catcher field output hit 66,000 barrels of oil equivalent (boe)/d at 100%. Tolmount Main has been sanctioned and peak production is put at 58,000 boe/d at 100% and the company is also secured highly prospective new licences secured offshore Mexico and Indonesia.

Earnings before interest, tax, depreciation and amortisation rose to $882.3mn, up 50% on 2017's $589.7mn, and cashflow rose to $777.2mn, up 64% from 2017's $475.3mn, allowing faster pay-down of debt.

For this year it expects production to average 75,000 boe/d, a 5% increase after disposalsmillion, respectively. Other milestones are project sanction of Catcher Area additions – Catcher North and Laverda – anticipated this half-year; and appraisal of the Zama and Tolmount East to complete in the third quarter.