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PremierOil provide trading and operations update

Thursday, Jan 17, 2013

Premier today provides a trading and operations update ahead of its 2012 Preliminary Results which will be announced on Thursday 21 March 2013.

Simon Lockett, Chief Executive, commented:

“2013 will be a busy year for Premier.  After an increase of 43 per cent in 2012, a further significant increase in production is expected during 2013.  We are also building an increasingly material exploration programme.  We will continue the work of 2012 which saw strong reservoir performance from our producing fields and excellent progress on our operated development projects. We look forward to strongly rising cash flows allowing us to pay a dividend to shareholders and to fund new growth opportunities.”

Production Operations

Estimated average production for the full year 2012 is 57.7 kboepd (2011: 40.4 kboepd) and is expected to increase to 65-70 kboepd for the full year 2013.  Run rates are anticipated to increase to 75 kboepd once Huntington and Rochelle are onstream by the end of the first quarter.

In Vietnam, production from the Premier-operated Chim Sáo field averaged 15.2 kboepd in 2012 ahead of original development plans. The price of oil cargoes sold from the field during the year averaged in excess of $4.50/bbl over Brent.

In Indonesia, Block A sales from the Anoa field averaged 144 BBtud (2011: 152 BBtud), a share of 44.4 per cent (2011: 42 per cent) of GSA1 deliveries, against a contractual share of 36.9 per cent.  Sales from Gajah Baru, which are dedicated to GSA2, averaged 72.1 BBtud while the field achieved production rates of up to 200 BBtud during the planned shutdown of the Anoa field in the summer of 2012.  Overall, Premier operated facilities provided the majority (54.5 per cent) of the gas to Singapore through the WNTS pipeline.

Production from Premier’s North Sea fields increased to 12.1 kboepd (2011: 10.3 kboepd) during 2012 in spite of no contribution from the Kyle field.  The Banff FPSO, which handles the Kyle production, was damaged during exceptionally bad weather at the end of 2011.  Since then, the Banff FPSO has been off location while repairs are undertaken.  The increased production in the North Sea can be attributed to significantly higher uptime at the Balmoral facility, positive results from the Scott field well intervention programme and our increased stake in the Wytch Farm asset.

Production from Pakistan increased to 15.6 kboepd (2011: 15.1 kboepd) during 2012 as natural field decline continues to be more than offset by successful infill drilling and in-field exploration success.  A programme of wells is testing tight gas zones underneath the Kadanwari field.

Exploration and appraisal

Premier plans to drill at least 14 wells in 2013 targeting more than 200 mmboe of net unrisked prospective resource.

The Matang well on Block A Aceh is currently drilling and expected to reach the reefal build-up target during February.  Elsewhere in Asia, Premier has a four well high impact programme using the Ocean General rig.  This will start by drilling the high risk but potentially play opening Ca Voi well offshore East Vietnam, followed by the Silver Sillago (Ca Duc) prospect in Block 07/03 and the Kuda and Singa Laut prospects on the Tuna Block in Indonesia.

In the North Sea, forthcoming wells include Luno II on the western margin of the Utsira High in Norway, which is expected to spud in February, and Lacewing, Premier’s first high pressure, high temperature well in the UK North Sea.

Source: Premier Oil plc 

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