• Average production rates for 2007 8% higher than 2006 at 35.7 kboepd; year end run rate of 38.8 kboepd (December average);
• Strong oil and gas prices realised in second half; full year average of $74.6 per barrel, a 3% premium to Brent;
• Increased balance sheet strength with cash balances of around $330 million at year end.
• Major development projects progressing as planned to build Premier’s production to 50,000 boepd by end 2010.
• Chim Sao (Vietnam), Alur Siwah and Gajah Baru (Indonesia) expected to reach project sanction this year and on-stream in 2010.
• Programme of approximately 18 development wells and up to 12 exploration and appraisal wells planned for 2008;
• Forward programme:
- Up to 24-month Vietnam campaign expected to commence in mid-March 2008;
- Monte Cristo-1 well in Philippines expected to spud 1Q 2008;
- Bream appraisal well in Norway expected to spud during March or April 2008;
- Significant development well programme in Pakistan includes accessing a number of deeper exploration prospects;
- Qadirpur deep testing programme scheduled for April 2008.
- Infill drilling at Wytch Farm, Scott and Chinguetti
New Joint Venture
• Execution of joint venture agreements with EIIC planned later this week.
• Appointment of Mr David Lindsell and Mr Michel Romieu as non-executive directors.
Simon Lockett, Chief Executive, commented:
"2007 saw significant progress on Premier’s development projects as important gas contracts in Indonesia and Singapore were signed. We begin 2008 in strong financial shape, with an active exploration programme, especially in Vietnam, and on target to deliver our stated production target of 50,000 boepd by the end of 2010."
Premier Oil aims for 50,000 BOE/d by 2010
Filed from Singapore 1/14/2008 12:20:56 PM GMT
UK: UK's Premier Oil is aiming to lift production to 50,000 BOE/d by the end of 2010, up from the average 38,800 BOE/d for 2007.
Premier Oil is expecting to sanction the Chim Sao shallow water project offshore Vietnam, the onshore Alur Siwah project and the offshore Gajah Baru project in Indonesia this year, with the aim of starting production in the three projects in 2010.
In 2007, the company's yearly production averaged 38,800 BOE/d, about eight per cent higher than the previous year.
Strong oil and gas prices realised in second half of the year boosted full year average crude selling price to US$74.6 a barrel, a three per cent premium to the New York Brent Crude price.
In 2008, Premier plans to drill about 18 development wells and up to 12 exploration and appraisal wells.
Premier is set to embark on a 24-month drilling campaign using Premium Drilling-managed jackup WilBoss offshore Vietnam in mid-March 2008 and to drill the Monte Cristo-1 offshore well in Philippines using a land rig in first quarter of 2008. In Pakistan, the explorer will be undertaking development driling onshore Qadirpur to "access a number of deeper exploration prospects" in April 2008.
Elsewhere in Europe and Africa, Premier is planning to drill an appraisal well in Bream offshore Norway in March or April 2008, infill wells in Wytch Farm and Scott off UK and Chinguetti offshore Mauritania.