UK: Premier Oil Shifts Focus to North Sea After Success in Asia

Premier Oil, a growing oil and gas exploration and production company with interests in eight countries around the world today announced its Interim Management Statement for the period to 15 November 2011.

Premier’s two significant Asian developments are now onstream. Chim Sáo field offshore Vietnam is producing 25-30 kbopd, which is ahead of expectations. Gajah Baru field , located in Natuna Sea off the coast of Indonesia, which started with first production on October 24 is expected to average 60 bbtud for the remainder of the year, before ramping up, and is meeting current customer nominations of up to 90 bbtud.

2011 production guidance of 40-45 kboepd remains unchanged. Premier continues to expect a run rate of 60 kboepd by the end of 2011 and to target 100 kboepd in the medium term.

First oil from the Huntington field is expected in September 2012, as previously guided, and Premier reiterates its production run rate target of 75 kboepd by the end of 2012.

Sale of Cladhan Interest

The recommended acquisition of EnCore is on track to complete in January 2012. Upon completion, Premier has agreed to the on-sale of EnCore’s interest in Cladhan to TAQA for a cash consideration of $54.8 million.

25 exploration and appraisal wells are drilling or planned for the remainder of 2011 and 2012, with unrisked net prospective resource potential, on a mean basis, in excess of 200 mmboe. This includes 6 wells in the important Eocene play fairway in the Central North Sea where Premier has a growing position and an extensive knowledge base.

“We are working to deliver the next phase of approvals on a number of fields including Block A Aceh, Dua, Frøy, Bream, Solan and Fyne over the next six months.” the company said on its website.

Premier has also agreed to purchase Nexen’s operated interests in three Norwegian licences, subject to government and partner approvals, which are close to the Company’s existing acreage in the Norwegian North Sea.

Simon Lockett, Chief Executive, commented:

“It is extremely pleasing to see such good early performance from our newly producing operated fields in Asia which keeps us on track to achieve rapidly growing near term cash flow. Having delivered successfully in Asia, the focus for investment activities now shifts back to the North Sea where we continue to build another high quality business with significant upside potential. This is an exciting time for Premier and its shareholders.”

[mappress]
Offshore Energy Today Staff , November 15, 2011; Image: Premier Oil