Premier Oil said today it was on course to grow production by around 50% during 2012, in line with its previous target, and would focus more on existing assets than new acquisitions this year.
In the trading update ahead of full-year results on March 22, Premier also said output from the North Sea Balmoral area improved in the second half of 2011 as “immediate issues” affecting performance in the previous six months were resolved.
But problems on the Kyle field continue – Premier said the Banff floating production, storage and offloading vessel (FPSO) lost its anchors and was damaged during December’s bad weather.
The firm added: “As a result, the Banff FPSO has been removed from location while repairs are assessed.
“It is currently unlikely that production from the Kyle field will recommence in 2012.”
Development drilling on the Huntington field in the UK North sea was progressing well, said Premier, adding the first two producer wells – both drilled and tested – had exceeded expectations.
UK Government approval of the field development plan for West Rochelle came last month and Premier said subsea facilities fabrication and offshore construction on the host Scott platform was progressing to schedule.
Development drilling and subsea installation work is expected to start in March and June respectively, with first gas anticipated in the fourth quarter of 2012.
Elsewhere in the UK North Sea, Premier said project sanction for the Solan development, of which it is operator, was planned for April.
Premier and joint-venture partners are weighing up development options for the Premier-operated Fyne field, for which project sanction is expected in early 2012 and first oil targeted for mid-2014.