The chief executive of Premier Oil said yesterday it had been able to maintain a portfolio of future developments which should have the potential for significant, profitable growth over the next few years.
Simon Lockett told shareholders at the company’s annual meeting that Premier would drill 10 exploration and appraisal wells this year.
He said: “The programme has begun well with encouraging activity in Egypt and Pakistan and we look forward to the outcome of new wells in Vietnam, Norway and the Congo in the very near future.
“The highlight of our year was the acquisition, completed last week, of the North Sea assets of Oilexco, which more than double our production and triple the size of our reserve base in the North Sea.
“We have acquired with the assets a number of important operatorships and a team in Aberdeen well equipped to build on the combined business.
“Our total reserves and resources have risen to close to 450million barrels of oil equivalent, allowing us to increase our medium term production target to 75,000 barrels per day.”
Mr Lockett added that a combination of undrawn bank facilities and strong operating cash flow meant Premier’s £630million capital programme, incorporating both Premier and Oilexco developments, would be comfortably funded.