Premier Oil plc reported it produced an average 61.2 kboepd for the first 11 months of 2020 and expected to meet its full-year guidance of 61‐64 kboepd.
The company, currently engaged in a reverse takeover with Chrysaor, said 2021 production would be marginally higher at 61-66 kboepd, reflecting new production its operated Tolmount gas field which is due to come on-stream during the second quarter of 2021. This would be offset by natural decline and maintenance shutdowns deferred from 2020.
Operational expenses during 2020 (ex‐lease costs) are forecast at $12/boe. Full-year capital expenditures, including abandonment expenditure, is now expected to be $315 million, reflecting full year savings and deferrals of over $250 million.
Premier forecasts 2021 operating costs (ex-lease costs) of $15/boe, and includes the tariff to be paid for the Tolmount infrastructure.
Total capital expenditure (including abex) during 2021 is expected to be in the region of $275 million. Net debt at the end of November was $2.06 billion, a slight increase from the end of October ($2.05bn).
Production at Catcher Area has been restored to rates in excess of 60 kbopd (gross) following a seven-day outage in mid-November. bit.ly/3mkKpJr
In early December, production from the Solan field was shut in following the failure of the emergency generator which is being repaired.
The Tolmount platform was installed during October and batch drilling of the four wells is underway. First gas is forecast for Q2 2021 adding 20‐25 kboepd (net). All four wells are expected to be completed during Q4 2021.
Once the merger with Chrysaor has been completed, Premier will be renamed Harbour Energy plc after the largest shareholder Harbour.