Premier Oil said yesterday the first phase of its west-of-Shetland Solan development project had started on schedule, with drilling under way.
The independent, which made its first steps into Brazil this week with an acquisition of three exploration licences, also said it was on target to present a field development plan (FDP) for its central North Sea Catcher project later this year.
Solan is expected to produce 40million barrels of oil, with an estimated initial rate of 24,000 barrels a day from the end of 2014.
The UK-listed firm’s total production averaged 58,000 barrels of oil equivalent (boe) per day during the first four months of the year, below guidance for 65-70,000.
Production from its UK fields was affected by the temporary shutdown of the Balmoral production vessel for unexpected maintenance, although the company said it would still meet its annual target.
Chief executive Simon Lockett said: “We have seen a strong start to our 2013 exploration drilling programme and continue to work hard to optimise production and progress new projects, while increasing the materiality of our future exploration activity.”
The firm’s acquisitions in Brazil follow last year’s £643million deal with Rockhopper Exploration, in which Premier became a key Falklands oil and gas player. Premier said it expected to complete the final design for its Sea Lion project in the Falklands later this year, before submitting an FDP mid-2014.
The group’s newly on stream central North Sea Huntington field is producing in line with expectations and is anticipated to ramp up to 25-30,000 boe per day gross by the end of the month.
Premier’s other projects include the high-impact Lacewing prospect in the UK North sea, where drilling started on May 7.